Competitor Analysis: Vroom, Carvana, Ebay
For your final exam, you must conduct a competitor analysis for the company Vroom (NASDAQ: VRM). Compare its value propositions (it has a two-sided revenue model) to Carvana (NYSE: CVNA) and eBay (NASDAQ: EBAY). Your focus will be on Vroom, but you will need to discuss details of the other two firms as well. Be sure to fully integrate our “Competitive Advantage” reading when addressing these questions.
Specifically, your analysis should contain the following:
Comparison of the three firms’ value chains (for Vroom, start here: https://mackinstitute.wharton.upenn.edu/2019/used-cars-mitch-berg/).
What are the major cost drivers for Vroom? Are there any opportunities to capture scale economies with them?
According to our Competitive Advantage reading, “differences in willingness to pay account for more of the variation in profitability observed among competitors than do disparities in cost levels” (p. 16). Thus, please analyze Vroom’s customers potential willingness to pay by analyzing how well the firm is meeting the customers’ needs in comparison to its competitors. Be sure to narrow the list down to no more than five by following the guidelines on the top of p. 19 in the reading. This should result in an illustration similar to Figure 4 of this reading.
Once you have completed the analysis above, what recommendations can you make for Vroom over the next 5 years? Be sure to include specific, actionable steps.
A valuable source of information is Vroom’s recently-filed Prospectus (https://sec.report/Document/0001193125-20-145219/#bc801274_5), it will contain some financial and operating data, as well as some other valuable info.
Please limit your submission to 10 pages (not including figures or Works Cited). You can eschew the case analysis format if you so choose, but I would still like to see an introduction to the analysis. Your answer to question 4 can serve as your conclusion.
Finally, please note that the following website is NOT a credible source for your analysis – https://futureworktechnologies.com/how-vroom-works-business-revenue-model
APA
