Operations and Logistics of Running a Car Club in Newport, UK
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Date
2024-09-26
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Publisher
Swansea University
Abstract
This project is cantered around a strategic opportunity to launch a new car club in Newport, with
the aim of enhancing mobility solutions while expanding Enterprise Car Club’s market reach.
The proposal evaluates Newport's unique geographic, demographic, and infrastructural
characteristics to determine how a car-sharing service can successfully integrate into the city's
existing transport ecosystem. By examining population density, transportation networks, and
local household dynamics, the project identifies the most suitable strategies for introducing a
sustainable, customer-centric car club.
The purpose of the proposal is to address the untapped potential for car-sharing services in
Newport, where 23% of households lack car ownership and demand for flexible, cost-effective
mobility solutions is growing, this finding can be seen in section 5.1.3. Through detailed analysis
of the city's urban layout and demographic profile, the project aims to develop tailored
recommendations that align Enterprise Car Club’s services with the specific needs of Newport’s
residents.
The analysis revealed that Newport’s well-established transport links, such as the M4 motorway
and local bus services, make it a strategic location for a car club launch. However, the current
car club distribution is concentrated in the southeast, leaving significant gaps in the northern and
western parts of the city. Additionally, Newport’s household income is slightly below the
national average, signalling the need for affordable pricing structures to make the service
accessible to a broad range of users.
Key recommendations include expanding the car club service to underserved regions of the city,
particularly the north and west, to ensure equitable access. Furthermore, targeted marketing
campaigns should focus on the 23% of households without a car, while offering tiered
membership plans that cater to cost-sensitive users and larger families. To optimise vehicle
availability, the use of traffic data is recommended to better position vehicles in high-demand
areas during peak times. Finally, integrating car club locations with public transportation hubs
will enhance accessibility, ensuring the service is well-aligned with the city’s overall mobility
network.
This proposal outlines a comprehensive strategy for the successful launch and operation of a car
club in Newport, positioning Enterprise Car Club to capture a significant share of the city’s
growing demand for urban mobility solutions.
Description
This report explores the business opportunity for Enterprise Car Club to expand its services by
launching a new car-sharing network in Newport. This location was selected after a thorough
evaluation of several potential sites, driven by the rising demand for flexible, sustainable
mobility solutions in urban areas. Newport’s favourable geographic and demographic
characteristics, including a well-connected transportation network and proximity to the M4,
position it as an ideal market for this expansion. The project aims to create a strategic plan that
aligns with the mobility needs of Newport’s population, focusing on operational management,
supply chain logistics, marketing, and customer service. Enterprise intends to leverage its
established brand, extensive network, and innovative technology to develop an efficient, user-
friendly, and scalable car club that addresses gaps in existing mobility infrastructure. This
initiative not only strengthens Enterprise’s market position in the burgeoning urban mobility
sector but also enhances profitability and sustainability.
Key objectives include assessing how geographic and demographic factors influence car club
operations in Newport, Middlesbrough, and Wolverhampton. This involves evaluating urban
infrastructure such as population density, transportation networks, and land use patterns and
examining the demographic composition to identify target user groups based on age, income,
household size, and car ownership rates. The project also analyses accessibility to car club
services, focusing on proximity to public transit and potential socio-economic barriers to
participation. Understanding user behaviour and satisfaction through surveys and data analysis
will provide insights into regional preferences, with detailed aims discussed in section 5.0.
The scope of the project is limited to the evaluation of geographic and demographic factors
affecting car club operations in the selected cities, excluding other locations and in-depth
financial analyses of setup costs. Technical aspects such as environmental impact assessments
and specific vehicle technologies are also beyond the scope. Limitations include potential biases
in survey data and restrictions in data availability, which may affect the conclusions regarding
user behaviour and geographic influences. Our research employs a systematic approach utilising
diverse data sources, including industry reports and academic literature. A comparative analysis
indicates that Newport offers the most favourable conditions based on demographic trends and
market demand. The team, consisting of nine members divided into subgroups, ensures
comprehensive coverage of research aspects.
We will incorporate specialised data from Enterprise Car Club and analytics firms like Statista,
focusing on strategic implementation and operational logistics in Newport. Our analysis employs
PESTEL and SWOT frameworks, regression analysis for market demand forecasting, and
benchmarking against competitors like Zipcar to identify areas for improvement. Visual data
analyses enhance the clarity of our findings, while market and financial analyses reinforce the
proposal’s profitability potential. Additionally, we conduct risk and competitive assessments
supported by five academic theories: Diffusion of Innovation Theory, Resource-Based View
Theory, Social Exchange Theory, Urban Form Theory, and Service Quality Theory.
Keywords
Operations and Logistics of Running a Car Club in Newport, UK
Citation
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