Renting Out Sports Products
Renting Out Sports Products
The business model seeks to resolve the challenge of people having the expensive out sports and outdoor equipment and tools in parks and beaches. Our company will be keen rent out the sports and outdoor products for use in parks and in public areas. The business is trying to feel the market gap in the renting out of sporting and outdoor products in public areas for any customers to use. Normally, it is difficult for people seeking to engage in sports activities t own sports goods items because they are costly to purchase. Therefore, the limited access to sports goods and items in public spaces is a huge problem for people who seek to engage in recreational sports activities.
Addressing Customer Needs/Problems
To address the customer’s needs, the business will rent out sporting products and items to customers. The company will not restrict anyone seeking to rent out the sports products. The rentals of the sports goods are effective in growing the market segmentation and access to sports items for citizens. The sports are stored in lockers, which could be accessed easily after the payment of the rental fees and deposit. To rent the sports goods, users will download an App and then scan a QR codes on the sharing lockers that are usually located in close vicinity to public parks and courts. The payment of the rental services is then completed either using a credit card or PayPal.
The option for people to rent out the sports items is an effective way for reducing the costs of purchasing the expensive sports items and goods. The business will also set up a club that will give the members various benefits. People signing into premium membership will enjoy the various benefits. Apart from enjoying the rental services, the customers will get opportunity to store their valuables and charge their phones in the lockers. The app of the business also allows the customers to note the available and reserved equipment when you sign up for the premium membership.
The business idea is focused on resolving the various needs of the customers. The customer needs includes the desire for sports/activities, but do not have proper equipment. Some customers also forget to bring the equipment to the outdoor spaces. Certain equipment might be quite expensive and would not afford to pay for the sports equipment effectively. It is also demanding for the customers to carry equipment at all times and use them for a short while. It is impossible to find people engaging in sports and other activities. Other individuals who are seeking to live healthy life styles.
On a business level, the company has a huge customer and market opportunities to expand their service business with the economy. The market opportunities are created by the sports players, soccer players, and other sports persons, people seeking to remain healthy, people who love to spend time outside, people from the different age levels, and gender among others. The business will opportunity to market their business offers through providing greater value at a lower cost than competitors (Barringer, & Ireland, 2016). The targeting of the opportunities from the customer segments for people who enjoys outside lifestyle markets, people who enjoys being in external spaces, doing exercises, and playing sports in the local community parks.
The business will also target people living in areas with good weather conditions. The areas include California, Texas, and Florida. The business will put more efforts in expanding their operations in the markets. Huge market opportunities emerge due to the lack of good competition for the rental of the sporting items and goods. The absence of competition creates a large market for the customers in expanding their revenue base and creating a larger customer base. The current trend of the needs of equipment for the people who enjoy living in the in outside spaces and thus, the company will gain opportunity for providing more services.
In the current economic boom, people have high level of disposable income and could borrow money at low interest rates to set up the business. Good economic environment is favorable in promoting the success of the business due to the capacity to rent sporting items and goods in the organization. It is easy to get new customers through social media channels in understanding in the marketing environment. The business will also enjoy the low labor costs due to the presence of technological advancement and innovations.
Forecasting & Projections
In the next five years, it is expected that the business will grow its market coverage significantly due to the access in growing markets. The design of good sales and marketing plans is important. Based on the current market, it is expected that the renting of sports products will grow to large revenues in the next few months. The access to intermediaries of the sports business is necessary to influence the long-term sales of the business. Individual customers and corporate institutions will be able to grow the sales targets.
The rental of sports items and goods will face potential weaknesses and threats and enjoys significant opportunities and strengths.
• Trusted brands in the rental business of sports goods
• Large number of supporting sports brands for their rental operations
• Well known business operations
• Aggressive price strategy undermines the credibility of the retailers
• Reduced staff turnover
• Increased online presence with access to the customers. Weaknesses
• Highly competitive market of sports with slowing expansion of market share
• Companies are operating reduced profitability that undermines the future profitability levels.
• Despite of the economic problems in Euromarkets, the company has an opportunity to create its base in both Eastern and Western areas.
• The company can implement aggressive strategy obtains brands from the European region giving opportunity to reach a wider markets.
• The rising costs of materials would also affect the level of revenues as the companies operates at low profit margins
• The changing of tax policies because of Eurozone crisis as it undermines the operations of the economy
• New digital technology could lead to serious technological challenges.
The total available market (TAM) is the access to the large population of the sports people and populations. The market positioning of the company is appropriate in expanding the market potential and market share in the society. The market will grow significantly doe the ability to deliver a wide variety of sports items and goods (Barringer, & Ireland, 2016).The assessment of the overall market is critical in promoting the market coverage of the sporting items. The evaluation of the overall market target is critical in influencing the long-term success of the overall economy.
To conclude, the renting business of the sports goods and items is critical in understanding the markets. Certain equipment might be quite expensive and would not afford to pay for the sports equipment effectively. It is also demanding for the customers to carry equipment at all times and use them for a short while. It is impossible to find people engaging in sports and other activities. Therefore, the strategic analysis of the business is important to promote the success of the business.
Barringer, B., & Ireland, D.R. (2016). Entrepreneurship: Successfully launching new ventures. Boston, MA: Person.