The external marketing environment is full of opportunities and threats that can have

a profound effect on the success or failure of a company, a brand, or a product in the

global marketplace. Although the external marketing environment is largely
uncontrollable, marketers must always be aware of the many forces that may impact
the business. Marketers conduct due diligence for the business by scanning the
environment for social, demographic, economic, technological, political, legal, and
competitive opportunities or threats. In this Assignment, you will practice scanning
the global marketing environment for opportunities or threats to an organization.

In this Assignment, you will be conducting an environmental analysis as a new

marketing associate for a car sharing business.
Solution:

Environmental Analysis
This analysis provides opportunity to the organisation for forecasting of environment
opportunities and they can plan for grab that opportunities. Environmental analysis
also provides the avenue to challenge threat with the existing resources. With
analysis, the Company comes to know its weakness and make plans to turn
weaknesses into opportunities.
U Drive Transport:
SWOT Analysis:
Strengths:
Curb side appeal
o Small, fast service and cutting edge
GPS system
Option to select auto paid insurance
No advance notice needed
Economical and environmental friendly
o Payment is instantaneous by ATM, credit card or Paypal
o Licenses are scanned at the pickup/ drop off site
o Website is very user friendly
o Scriber verification process for insurance and legal compliance
Weaknesses:
Four hour rechargeable battery alternatively uses gasoline
Business growth depends the growth of the city to attract workers (ages 24-
50)
Renters must plug it in to charge it
o Solar power is a tough sell in the north
Limited number of recharge station locations
Opportunities:
Great growth potential
o In a tough economy with workers losing jobs and cars
Competition is increasingly expensive
o Private car, public transport, taxis, car rentals
 Opportunity to create partnership
o Small cars can be dropped off at other points around the city
Electric/gas powered vehicle for northern hemisphere of the
USA.
Solar/ electric in certain states like Florida, Arizona and
California
Businesses will be the most likely add on the market
Expand the number of recharge stations throughout city centres
Threats:
Scan able RFID chip credit card security concern
New technology could eventually supplant these types of automobiles
Competition could overtake the market it expansion is not rapid enough
High gas prices could affect long term rentals
Growth funding: Critical for future growth
Economic downturn may adversely affect subscribers ability to travel
Disposal of rechargeable batteries and their effect on the natural environment

There are two types of environment:

Macro Environment Analysis
Micro Environment Analysis

Macro-Environment Analysis
Macro environment is composed of broad forces that affect not only the company but
also the other actors with in the micro environment
Political and legal Forces
Legislation: Introduction of the Raechel and Jacqueline Houck Safe Rental Car Act
of 2013 has prohibited rental car companies from renting vehicles that are under
manufacturer recall. This legislation ensures the safety of the customers and
protects drivers from the risks related to auto safety recalls. As the consequence, car
rental companies are not being able to maintain maximum reservation thus losing
noticeable amount of potential revenue.
International political scenario: The political crisis in the Middle East does not
worries at the regional level only, but gives a severe problems to the global economy.
The recent political wars in Iraq, Syria and other oil resource countries have affected
oil production very badly. As a result price of crude oil has risen from $105 per barrel
(in April) to $113.50 per barrel (BBC, 2014). It is a serious issue for the car rental
companies.
Economic Forces
In 2008, recession influenced the car rental industry. Demand for rental vehicles
reduced due to a significant decline in air travel, this further led to lowered car rental
rates. It directly affected the revenue of the car rental firms.
The global interest rate is affected the car rental industry ad reduce the revenues of
U drive transport
Social Forces
Economic growths in past few years have brought positive changes in the lifestyles
of people. These changes of lifestyles have increased the social trend of travelling to
new places for adventure, leisure, business and other activities. Such a promising
rise in number of air travellers is sure to benefit to U drive transport also.

Technological Forces
U drive transport has taken the car rental experience to new level by combining
technology and modern services. It has developed streamlined rental stations.
Moreover it has successfully expanded. With on Demand Technology, customer can
pick up the cars in neighbourhoods, designated city parking lots, on airports and
college campuses with a quick online reservation. Also U drive transport linked every
service like insurance payment with the an integrated system which provides
customer to easy operations
Environmental forces

Being a car rental business, many processes and operations conducted by U drive
transport has a great influence on the environment. Given the nature of the
company, U drive transport is very serious about the environment. As the result it has
developed a Sustainability Program.