Pricing simulation universal rental car strategy. Universal Rental Car Pricing Simulation Report Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies 2022-10-25
Pricing simulation universal rental car strategy Rating:
Pricing simulation is an important tool for companies in the rental car industry to optimize their pricing strategy and remain competitive in the market. Universal Rental Car is no exception. In this essay, we will explore the benefits of pricing simulation for Universal Rental Car and discuss how it can be effectively implemented as part of their overall pricing strategy.
One of the main benefits of pricing simulation is that it allows companies to test different pricing scenarios and predict the likely outcomes without actually implementing the changes in the market. This can help companies make informed decisions about their pricing strategy and avoid costly mistakes.
For Universal Rental Car, pricing simulation can be used to assess the impact of various factors on demand and revenue. For example, the company can simulate the effects of seasonal fluctuations, location, and vehicle type on demand and revenue. This information can be used to set pricing tiers and determine the optimal price for each type of rental.
In addition to helping with pricing decisions, simulation can also be used to optimize inventory management. By simulating different levels of inventory, Universal Rental Car can determine the optimal number of vehicles to keep on hand in each location to maximize revenue.
To effectively implement a pricing simulation strategy, Universal Rental Car will need to gather and analyze data on past rentals and market conditions. This can be done through the use of data analytics tools and software, as well as by conducting market research and customer surveys.
Once the data has been collected and analyzed, the company can use it to build a simulation model that accurately reflects the market and its various factors. The model can then be used to test different pricing scenarios and make informed decisions about pricing strategy.
Overall, pricing simulation is a valuable tool for Universal Rental Car to optimize their pricing strategy and remain competitive in the rental car industry. By gathering and analyzing data, building a simulation model, and testing different scenarios, the company can make informed decisions about pricing and maximize revenue.
Universal Rental Car opportunities.alumdev.columbia.edu
At first I thought that this difference made sense and I also noticed that one of the cities initially such as Orlando was leisure while the other region Florida was more business however, this did not remain same as the prices were changed and as there was a change between the weekends and the weekdays. . Whether assigned as individuals or teams, players must set weekday and weekend prices for each region for each period month and make fleet capacity decisions at several points throughout the simulation. When a company invests heavily in a high-end brand, it becomes difficult for its competitors to offer a competitive product at the same price without a large marketing investment. During each of the runs, I had to pay attention to the most important factors and during each new run I felt that I could get a much higher score by focusing on all the important factors and then adjusting the pricing strategy accordingly.
Universal Rental Car Simulation Report Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies
The simulation is asynchronous and can be assigned for homework. Weekend Demand I had noticed that the weekdays within Orlando were always in demand and the scenario was also same in Miami however, the weekends in Orlando were priced higher as compared to Florida where the weekends were not in much demand. Companies adopting this strategy need to raise enough funds to offset the huge marketing costs involved. Premium pricing is the practice of setting higher prices to give the impression that a product must be of exceptional quality. The main indicators that really mattered included the adjustment of the prices and the adjustment of the supply demand of the cities.
Users get to play the role of a District Manager responsible for pricing a fleet of rental cars across 3 cities in Florida — Tampa, Orlando and Miami. . Demand for rental cars can vary depending on the month and whether the location is more popular with business or leisure travelers. Business consumer group is not a seasonal customer group and to target them will assure the company about their future consecutive profits. You can make periodic inventory adjustments among the locations to match anticipated demand. Please place the order on the website to get your own originally done case solution. I was able to stick to my strategy each time that I tried a new one, however each strategy resulted in a different outcome.
Finansol Graham Family and the Washington Post Co. . . In Orlando and Miami, business users were more price insensitive compared to Tampa. Therefore, it is difficult for a company to expect positive growth in revenue and fees at the same time. As for Miami, their fleet size was between the other two cities.
While playing the role of regional manager at the Universal Rental Car Company I was able to make many different observations regarding the way a company is run. The setting is a Florida rental car agency, where you'll assume the role of a district manager responsible for setting prices for rental cars across three Florida cities: Miami, Orlando, and Tampa. In order to target any specific group such as business group of the company, the high prices will reflect the more premium product which is irreplaceable from any other rental car brand. . Alternatively, given the range of variables at the professor's disposal, the professor can craft weekly assignments throughout the course which highlight specific learning objectives. My ultimate goal in each of the runs was to maximize the profits of the regions and the total profits of the company. The simulation was run across three cities in Florida; Tampa, Orlando and Miami.
Therefore, I also did this so that I can increase the profits of the low performing regions such as the Florida region Toni, 2017. The monthly orders have also seemed to decreased between October and November as shown by the orders data for Orlando and Florida in exhibit 3 in appendices. I saw that the demand was higher at weekends in those cities and therefore, I increased the prices on the weekends in order to make more money however, this was not at all a good idea because the demand had decreased as the prices increased on the weekend and the overall revenue had dropped. For example, it can be assigned as a pre-class exercise with subsequent in-class debrief. This had resulted in a breakeven change in volume of 21. However, the above strategy also resulted in higher revenue decreases and the overall profitability had declined Gregson, 2008. This had resulted in a lower score at the end of the simulation.
Universal Car Rental Pricing Simulation (Havard Busines...
These premium pricing strategy would not be beneficial in long term and need to be changed in future because our capacity utilization rate is 85% and in future if demand will increase, the high premium prices would not be a good option for the company because company would go for the 100% utilization of its current capacity which would only be successful if the prices would go down by its current position. If a company adopts an advanced pricing strategy, it should limit its sales efforts to the first market. This is a free browser plug-in. Initially you are able to add dew additional cars but when the cap is reached to the level of 36145, then the market share numbers show a lot of fluctuation as the cars move from one region to another. The simulation lasts up to 12 simulated months.
Universal Rental Car Pricing Simulation Report Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies
I ran through the simulation a few times and tried to operate the company using a different strategy each time. Tampa had a small fleet, however they still always had the lowest utilization rate of all cities just because of how low the demand for rental cars was in that city. Please place the order on the website to get your own originally done case solution. . As a result, I was left with 1083 cars remaining. In Orlando it is lower because the relatively higher contribution of weekend customers in that market.