Harvard Pricing Simulation Report
Pricing Strategy Group Coursework
Pricing Simulation: Universal Car
MBA Students | * | Date | 26 May 2013 |
1. Situation Analysis (Pre- game)
Before starting the simulation game we have analysed the available data based on the metrics below: * Market Conditions * Prices * Costs
1.1 Market Overview
Market Size & Fleet Allocation
Comparing the 3 cities, we have identified Orlando as the biggest market followed by Miami with Tampa being the smallest market. Our fleet is distributed in accordance with market size.
Market Share & Capacity Utilisation
Universal approximately has 43% market share across Florida.
Capacity utilisation is 100% in weekdays across all cities. Only Tampa and Miami weekend show redundant capacity. Since Miami is large market the underutilisation is a priority issue that needs addressing.
Growth
Tampa and Orlando show growth, with approximately 20% growth in from September to October. Interesting to note that demand growth in Miami fell to 5%. Overall, we can see that the demand is trending up.
Market Share & Capacity Utilisation
Universal approximately has 43% market share across Florida.
Capacity utilisation is 100% in weekdays across all cities. Only Tampa and Miami weekend show redundant capacity. Since Miami is large market the underutilisation is a priority issue that needs addressing.
1.2 Price history
Overall, across the 3 cities, we can notice that prices are more expensive during the weekdays than the week-ends.
It is unclear what our competitors‘ strategy is at the initial stage. We can see that there is a tendency to decrease incrementally except in Tampa where weekday rates are slightly increasing, and week-end price is stable in Miami.
Our positioning seems to be premium; we usually position ourselves as more expensive than our competitor. | Tampa | Orlando | Miami | | Weekday | Weekend | Weekday | Weekend | Weekday | Weekend | Elasticities |
Pricing Simulation: Universal Car
MBA Students | * | Date | 26 May 2013 |
1. Situation Analysis (Pre- game)
Before starting the simulation game we have analysed the available data based on the metrics below: * Market Conditions * Prices * Costs
1.1 Market Overview
Market Size & Fleet Allocation
Comparing the 3 cities, we have identified Orlando as the biggest market followed by Miami with Tampa being the smallest market. Our fleet is distributed in accordance with market size.
Market Share & Capacity Utilisation
Universal approximately has 43% market share across Florida.
Capacity utilisation is 100% in weekdays across all cities. Only Tampa and Miami weekend show redundant capacity. Since Miami is large market the underutilisation is a priority issue that needs addressing.
Growth
Tampa and Orlando show growth, with approximately 20% growth in from September to October. Interesting to note that demand growth in Miami fell to 5%. Overall, we can see that the demand is trending up.
Market Share & Capacity Utilisation
Universal approximately has 43% market share across Florida.
Capacity utilisation is 100% in weekdays across all cities. Only Tampa and Miami weekend show redundant capacity. Since Miami is large market the underutilisation is a priority issue that needs addressing.
1.2 Price history
Overall, across the 3 cities, we can notice that prices are more expensive during the weekdays than the week-ends.
It is unclear what our competitors‘ strategy is at the initial stage. We can see that there is a tendency to decrease incrementally except in Tampa where weekday rates are slightly increasing, and week-end price is stable in Miami.
Our positioning seems to be premium; we usually position ourselves as more expensive than our competitor. | Tampa | Orlando | Miami | | Weekday | Weekend | Weekday | Weekend | Weekday | Weekend | Elasticities |