Innovation Provide one example of a setting where one of the business model Innovations discussed in class can have, or has already had, a game changing, disruptive impact. Opportunities, which are novel, not mentioned in the class or in the book and not yet implemented are preferred. State clearly the context, provide the traditional way of doing business, provide the Innovation you have In mind and make a logical argument on why this could be game changing.
You can use any of the cases or xamples used in class to provide a comparison or reference. Your total answer should be < 500 words. Brief, precise descriptions are preferred Context (industry, relevant economic features): Through the development over the past decades, car rental Industry Is currently valued at $38 billion and is popular not only in western world, but also in emerging markets. Car rental industry primarily serves people who require a temporary vehicle, for example those who do not own their own car or travelers who are out of town.
Traditional Way. Typically customers can rent a car through car rental agencies, companies that rents out automobiles for short periods of time (generally ranging from a few hours to a few weeks). After that customers need to return the car to the originating spot or branches. New Way:0 The car fleet can be spread out In the city and with App on smart phones, customers can find the closest car available and use it, or book online to reserve a car after registration and verification. The fee is calculated by minutes or hours and charged directly from the App.
The users are also rated. After using the car, customers can park the cars In the city, waiting for next customer to drive It. Moreover, customers can also rent the car out through the platform to trustworthy users. Why this could be game changing (demand and/or supply point of view): 1 . It adds flexiblllty and convenience to the customers, hence Increases the demand. As there Is no need to return the cars and most likely easier to find a car in downtown area, it shifts a lot of demand from taxi to car rental.