Why Car2Go should invest in Austin

The Car2Go Company

Car2Go Company is one of the most prominent companies in the transportation industry. The company was established in 2008 by the principal founder called Jonathan Gadish, along with at least three more co-founders. Mostly, Car2Go is facing growing challenges in the current market segments, unlike in 2008, when the company was founded. In the current market segment, Car2Go is struggling to main competitive advantage, to maintain market share, to grow its customer base, to increase revenue, and to reach profitability (Jorge & Correia, 2013). Mainly, Car2go offers services in the transportation industry through car-sharing services. The car-sharing concept was initiated by the company cutting edge concept in leasing companies, rental car companies, and social responsibility. Thus, the core purpose of this paper is to develop a proposal to Car2Go management to examine a new market segment that the company can set its business.
In this proposal, the best city that seems viable to Car2Go Company business and market venture in Austin, Texas. Ideally, Car2Go management team should consider Austin as a potential business venture in life with car-sharing services. Mainly, car-sharing services allow people to use private cars without the burden of ownership. In Austin, many transportation companies, both profit and non-profit, have approached residents with an agenda of selling services similar to those offered by Car2Go (Jorge & Correia, 2013). Thus, the proposal aims to fuel Car2Go management to venture into the Austin market before the competitors achieve a competitive advantage. For Car2Go to venture into Austin’s market, it is essential to consider the marketing mix for the company to integrate with the market segment in Austin, Texas.

Austin as a viable business location for Car2Go

The first aspect that makes Austin, Texas, a viable business location for Car2Go is the demographic setting and location. Mainly, many people are residing in Austin where the majority are concentrated in the University of Texas at Austin and in the Central Business District (CBD) of Austin (Jorge & Correia, 2013). These two locations are essential to Car2Go business venture, and the company can be an appropriate service to residents of Austin who would like car-sharing services, those who occasionally require a car for short trips, and those who drive alone. In this proposal, Austin presents economic and demographic features that can propel Car2Go to set its next business idea in the location. Main, Car2Go has recorded success through existing car-share programs in other cities. Thus, the two locations in Austin, that is, Austin CBD and the University of Texas at Austin are the most appropriate and viable locations for Car2Go programs.
The physical characteristics in the neighborhood of Austin city will propel Car2Go Company to establish a successful business venture because the market segments in the city will support car-sharing services due to low car ownership rate. Austin presents transit and neighborhood characteristics that are likely to be the success indicators for car-sharing services offered by Car2Go Company. In the past decade, the household density in Austin has increased significantly thereby projecting that the majority of residents are likely to use car-share services.
Car2Go can successfully venture in Austin due to the high population of people in the Austin CBD and the University of Texas at Austin. The population of students at the University of Texas is estimated to be over 60,000 students (Zervas et al., 2013). Daytime employees in the Austin CBD are more than 100,000, and the majority of them reside in a 6-mile radius. Besides, the majority of people in the city are middle-income earners. In other words, only a small proportion of the population in Austin own personal vehicles. Thus, Car2Go has an opportunity to offer transportation services in Austin because of demographic and economic aspects in the area are excellent.

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Recommendations and Conclusion

Consequently, it is not easy for any company to enter the industry, and there is a need to use strategies that can allow the company to set a successful business venture. Thus, Car2Go needs to identify various aspects that can propel a successful business venture in Austin. The proposal provides several recommendations to Car2Go to set achieve competitive advantage in Austin through the marketing mix.
Mainly, Car2Go aims to offer car-share services in Austin. The main customers in the market segment are employees in the Austin CBD and students in The University of Texas at Austin. Thus, Car2Go should incorporate Smartphone applications to allow the majority of potential customers to access their services. Also, Car2Go should take advantage of telecommunication technology in Austin to offer 24/7 car-share services.
The cost of accessing Car2Go services should be affordable because the majority of potential customers in Austin are a middle-income earner. Thus, the company should set lower fees without annual fees. The company should use its flat rates to cover costs, thereby enabling the customers to save.
The company should target two main market segments in Austin, namely; the University of Texas at Austin and the Austin CBD. However, Car2Go can increase the business venture in the by targeting people living in a 6-mile radius of Austin.
Lastly, Car2Go should increase awareness of at least 50%. Thus, the company should partner with advertising companies in Austin to reach the target population. Mainly, Car2Go should partner with Translink to lower the cost of advertising.

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