GreenGo’s new strategy in the carsharing market of Budapest: How can a start-up defend its market against the largest company in the country?
Publication date: 25 February 2019
Abstract
Learning outcomes
The purpose of this paper is to demonstrate how a business idea can be successful in the long run in a rapidly changing environment. Students could learn about the carsharing market and the world of start-ups. During the lesson, students could practice business modelling based on “Value proposition Canvas”. With this model, they can understand the real needs of the customers and the services, with which companies can provide gains for the clients and decrease users’ pain. Beside business modelling, the case provides the opportunity to learn about the concept of First Mover Advantage, which describes the possible advantages of being first on a market. Three different sources can provide first mover advantage: technological leadership; pre-emption of scarce assets; and customer loyalty. Start-ups should systematically think about acquiring some of the above to sustain their advantage.
Case overview/synopsis
This case is about a carsharing start-up GreenGo, which was the first company introducing the concept of carsharing in Hungary. GreenGo was founded in November 2016 in Budapest. Until today, it has approximately 170 cars and could establish a solid customer base with 6,000 subscribers. After one year of monopoly, GreenGo got a competitor, when MOL (one of the largest companies of the Central European region) entered the market with its new carsharing service: MOL Limo (Limitless Mobility). MOL Limo is using the same business model and marketing mix as GreenGo and started to operate with 300 cars. The case describes the urban transportation of Budapest, the business model and value proposition of GreenGo and MOL Limo in depth. It also presents some possible options for GreenGo to react to the new market situation.
Complexity academic level
Master in management, MBA.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS: Strategy, Case study organisation: GreenGo.
Keywords
Acknowledgements
Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
The authors would like to thank Bálint Michaletzky and the whole GreenGo for the support during the research. The authors are grateful to Horváth & Partners and the reviewers for their valuable comments.
Citation
Bakonyi, Z., Gyurity, E. and Horvath, A. (2019), "GreenGo’s new strategy in the carsharing market of Budapest: How can a start-up defend its market against the largest company in the country?", , Vol. 9 No. 1. https://doi.org/10.1108/EEMCS-05-2018-0070
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited