Case the nightmare competitor of equipment rental
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Feb. 17, 2018•0 likes•1,048 views
Case the nightmare competitor of equipment rental
Feb. 17, 2018•0 likes•1,048 views
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Case the nightmare competitor of equipment rental
- 1. Rocking Business Innovation | 1© NC-Creators Case: The Nightmare Competitor of Equipment Rental
- 2. Rocking Business Innovation | 2© NC-Creators The Zeppelin case study illustrates how the Nightmare Competitor Approach enables companies to come up with new innovative business models
- 3. Rocking Business Innovation | 3© NC-Creators In the first step the customers and the business model of the established players were described High Importance Medium Importance Low Importance Customer: HeterogeneousCustomer: Users of Construction Equipment Rental Companies Offering (O) Value Creation System (V) Suppliers (S) Model for Utilization (U) Model for Generating Revenues (R) Standards of Integrity (I) Rental Fees (R) Utilization Management of Machinery Pool (U) Variability of Cost (O) Rental Outlets (V) Infrastructure for Maintenance (V) Machine Pool (V) Range of Products (O) OEMs as Suppliers (S) Machine Trading (R)
- 4. Rocking Business Innovation | 4© NC-Creators Unique Value NC Bargain NC Choice NC Ultimate Want NC • The bored ones • The ones who need new kicks • The established spend a lot on marketing but customers are nevertheless not loyal • Offers an altered product in a proprietary system • Tesla, Apple, Zara, Starbucks • The overshot • Notorious penny pinchers • Industries compete on the frequency of product launches and functionalities • Reduces the offerings, streamlines processes • Fosters modularity and reusability • Cuts marketing cost • Ikea, Aldi, SpaceX, Ryanair, Motel One, Mindray, Dacia • The ones who see choice and transparency as parts of their fundamental rights • Industries are not ready to grant the customers the choice they by now expect • Provide a platform comprising the offerings of the important market players • Amazon, Craigslist, Pairship, Moovel, AutoScout24, Uber, Expedia, Agoda, Alibaba, kloeckner.i • The ones who see the industry’s offering as workarounds • The industry is extremely product oriented • Provide a service or a product designed from the customer backwards • Dürr, Kuka, SolarCity, Webasto, Amazon Elastic Cloud Compute, Red Bull, Spotify, Double Robotics Targeted customers: Sees his chance when: What he does: Role Models: The given Business Model was attacked from all angles. Access NC • The ones overlooked or purposely not addressed by the industry • Industries do not question the boundaries of their customer definition anymore • Designs a business model that allows to give the excluded access • Kieser, Nintendo, Waymo, klickrent, Airbnb, NetJets, Drivy
- 5. Rocking Business Innovation | 5© NC-Creators Under the headline of the “Access Nightmare Competitor” we discussed whether there are customers the industry does not serve well today The result: Like in car rental or the accommodation business the industry does not serve customers perfectly that have very specific requirements. And it became apparent that they could be served by making the equipment held by construction companies available
- 6. Rocking Business Innovation | 6© NC-Creators A potentially nightmarish business model for the construction equipment rental industry was created Customer: HeterogeneousCustomer: Users of Construction Equipment Rental Companies High Importance Medium Importance Low Importance Customer: Owners and Users of Constr. Equipment AirBnB for Equipment Offering (O) Value Creation System (V) Suppliers (S) Model for Utilization (U) Model for Generating Revenues (R) Standards of Integrity (I) Rental Fees (R) Utilization Management of Machinery Pool (U) Market Transparency (I) Variability of Cost (O) Rental Outlets (V) Infrastructure for Maintenance (V) Access to Special Equipment (O) Machine Pool (V) Range of Products (O) OEMs as Suppliers (S) Construction Companies and other Rentals (S) Platform (V) Best Price (O) Revenues for Renting Out Machines (O) Machine Exchange (O) Machine Trading (R)
- 7. Rocking Business Innovation | 7© NC-Creators With klickrent Zeppelin occupied the market space well ahead of potential competitors Rocking Business Innovation | 7© NC-Creators
- 8. Rocking Business Innovation | 8© NC-Creators Go to slideshare.net to download core elements of the Nightmare Competitor Approach
- 9. Rocking Business Innovation | 9© NC-Creators www.nc-creators.com
Editor's Notes
- Perfect Breeding Ground (Pay attention when:) Customers are not loyal anymore Permanent new product releases High Marketing expenditures High R&D expenditures Price Erosion Position of the Established towards these customer: The established always enjoy serving the upper end of the market. But these customers don’t necessarily want to be seen as the upper end of something, they want to be seen as special. This is where the economies-of-scale-based business model of the established reaches its limits. ------------------- Bargain Customer At the other end of the spectrum is the “Bargain Customer”. These customers are tighter than a duck’s bum. If the price can be reduced, they’re ready to get their hands dirty to make it happen. They’re okay with waiting in line and they accept bland design, as well as base-model products and services lacking features and functionalities, bells and whistles. However, the quality of the core offering still needs to be good. They’re not ready to accept crap. They don’t mind being considered bargain hunters. They regard themselves as being smarter than their peers who fall for the superficial promises of the premium brands. They read review magazines to make sure that they’re getting a good deal. Bargain Customers are quite immune to advertising. They’re aware that they’re the ones footing the bill for that flashy ad campaign, after all. The only advertising they’re interested in involve ads in which the everyday price is slashed and substituted with a remarkably lower one. Perfect Breeding Ground (Pay attention when:) Think about your digital camera, your laptop computer, the programs you use on your computer, any modern TV set, or the options available on GPS systems. For many customers, the bells and whistles are more of a curse than a blessing. And with every feature and option, the established are adding another layer of expensive complexity. Happy days for Bargain Nightmare Competitors. Position of the Established towards these customer: Traditional companies don’t tend to focus exclusively on Bargain Customers. It’s only when the established need to dump stock that these customers are welcomed for the contribution margin they can provide. Otherwise, the established prefer to service more upmarket customers. ---------------------- Choice Customer Yet another kind of customer is the “Choice Customer”. This person is interested in transparency. They want to see what types of product are available on the market, ideally on a worldwide basis. They want to see how much stock is on hand or be informed about the availability of services. Of course, they’re interested in price transparency, as well. Here, Choice Customers and Bargain Customers mingle. Choice customers see the Internet as mankind’s greatest invention. It allows them to follow their passion. And the ubiquity of the Internet has led to them to the conviction that total transparency of all offerings and their respective prices are a fundamental right. Perfect Breeding Ground (Pay attention when:) To keep customers devoted, companies invest heavily in marketing. Powerful brands are created to refrain their customers from looking left or right. Loyalty programs are designed to retain customers even when a company is not able to provide the best offering. Nespresso and Apple demonstrate with their proprietary systems how beautiful it can be for companies to imprison customers within such a kind of microcosm. Taking these efforts into account, it’s easy to understand that there’s one thing the marketing geniuses in particular, and companies in general, can’t stand, and that’s when offers become comparable. Position of the Established towards these customer: The Choice Customer is completely outside the scope of the established, who try to make their lives as difficult as possible or at least attempt to seduce them so they don’t follow their basic instincts. ---------------- Ultimate Want Customer Ultimate Want Customers were never really happy with what the industry had to offer. Who wants insurance or who wants to see a doctor? However, the larger percentage of the Ultimate Want Customers are not aware of the offerings being work-arounds and fixes. But as soon as any Ultimate Want Customer gets closer to being offered a carefree life without insurance or health without doctors they understand that what they never previously questioned was actually not the best solution for them. Offered an alternative, these Ultimate Want Customers are gone in the blink of an eye. They ask themselves why it took so long for anybody to come up with such an alternative. Perfect Breeding Ground (Pay attention when:) Position of the Established towards these customer: This type of customer is not outside the scope of the established. But when the customer discovers an alternative and becomes disloyal, it’s enormously difficult to win them back. Often, a totally different business model is required Description of the Ultimate Want NC Ultimate Want Nightmare Competitors provide attractive alternatives that make the offerings of the established look like work-arounds. ---------------- Access Customer The final type is the “Access Customer”, who is not yet even a customer. The industry isn’t aware of the possibility of a relationship or considers it beneath its dignity to serve such customers. Perfect Breeding Ground (Pay attention when:) Position of the Established towards these customer: This type of customer is not outside the scope of the established. But when the customer discovers an alternative and becomes disloyal, it’s enormously difficult to win them back. Often, a totally different business model is required