A business model that has been widely accepted for music and audiobooks, TV series, and films for years is gradually making its way into the automotive industry: subscription models. For drivers, these models mean that they no longer need to buy a vehicle. Instead, they can just use one – as and when they need it – for a fixed monthly fee. The fee generally covers all costs such as insurance, tax, and maintenance, offering users a complete carefree package. In addition, these subscription terms are shorter than those available with leasing contracts, making them more flexible and allowing users to switch vehicles as often as they like. Some vehicle manufacturers already offer appropriate subscription models, various car rental companies have also adopted this approach, and startups are trying to get a foothold in the market too, of course.
Any OEMs and dealers planning to utilize the opportunities of this emerging market need to get started as soon as possible. We describe how to achieve this in our “Car Subscriptions” white paper, which presents five different market entry scenarios for OEMs and dealers. We also explain how companies can find the right scenario for them using the Business Model Canvas, an approach that allows you to systematically identify and compare costs and benefits, risks, and opportunities. The Business Model Canvas enables an informed assessment of any potential new business model, which, in turn, provides the starting point for choosing the right market entry scenario.
During our MHPDeepDive “Car Subscriptions: A Successful Start,” we will present the new white paper in detail and explore the challenges associated with subscription models.
Here’s what to expect in our MHPDeepDive:
- We will present our “Car Subscriptions” white paper.
- We will explain how OEMs and dealers can enter the subscription market and establish themselves in the long term.
- We will use the Business Model Canvas to calculate a business case and explain key considerations.
Speakers:
- Michel Lewalter
Manager – Customer Experience Strategies, MHP - Georg von Grone
Senior Consultant – Customer Experience Strategies, MHP
