Task Rabbit Harvard Case Solution & Analysis

Task Rabbit Case Study Solution

Bargaining Power of tasker:

There has not been such issue as the Task Rabbit is already providing the taskers with more wages than the standard ones provided by Federal. This has enabled a better chance for many people to earn handsome amount in a month by providing services at their convenient time. Thus, the organization has maintained a long term and healthy relation with its workers.

Bargaining Power of customer:

As the company believes on providing customers with high quality services at low cost. The cost charges for each of the service provided is surely maintained to be low. Hence, there has been no such issue of the bargaining power of customers as it is relatively moderate. (See Exhibit 2).

PESTLE Analysis:

Political:

The changes in the governmental policies, laws and regulation has much impact on the business organization not only in the U.S. but around the world. The political environment for the online marketers has always been easy going. There is no such involvement of political issues for such organizations.

Economic:

The online marketing has provided a great benefit to overcome the unemployment, which is the main obstacle in the poor economic condition of any country. More the employment rate of any country, more will be the economic growth. Hence, this organization has greatly increased the employment rate which has brought the increase in the economic growth as well.

Social:

Due to the services provided in order to make one’s life easier, this has badly affected the physical activities of individuals. However, a large number of employees are providing their services actively. But there has been a bad impact on the social life as people do not make effort  to do any work on their own as they are rather choosing to completely rely on the services which let their task done with no effort, and specifically at low cost.

Technological:

As this application is an online marketplace, this purely involves technology. The application is a combination of many services at one place like one stop solution for each problem. The evolution of e-commerce technology has made business deals and payments easier.As the payment for the service you provide are one click due to the availability of online payment options.

Legal:

The organization works under some policies such as EU-US Privacy Shield and Information Retention Policy. As the organization needs the customer’s data to access its accounts details for the purpose of its payment requirements. If any of the problem faced by customer related to its personal account details, the customer has the right to complaint the organization and know the reason behind it. (Rabbit, 2018 )

Environmental:

The service is completely based on software i.e. the online dealings and payments etc. So, there has not been any issue of environmental concern. As the services provided involve the use information technology,and it also provides the services for the cleaning and washing purposes, which is significantly in the favour of environmental condition.  Thus, resulting in the protection of environment against the pollution.

Competitor Analysis:

The industry running business on the basis of software application has strong competition. As Task Rabbit is one of the online marketplace providing home services to its customers. There are many competitors of Task Rabbit of which Thumbtack, Infoscout, Managed by Q are the top three competitors. These are all the digital agents creating a connection between the individual contractors and customers thus establishing a connection between the Users in order to complete the task.(Jeremias Prassl, 2015)On the basis of culture score, it is ranked as 4^th whereas, on the basis of CEO ranking, it is ranked as 3^rd. Thumbtack has focus in advertisement of its experts who are there for customers to help them in their projects while Task Rabbit does not aware people about its team expertise. However, Infoscout is more focused on the choice of customers of what they purchase and the reason behind it. Managed by Q has faced instability in its business but it now inspired by the success of Task Rabbit and now is back in the competition again. Unlike other competitors, Task Rabbit has an insurance scheme for both the client and the tasker for any injury, property damage, and theft while performing the task assigned to tasker. (Jeremias Prassl, 2015)

VRIO Analysis:

The efficient business analytical method is used for the estimation of the resources of the company. By the VRIO Analysis of Task Rabbit, four factors were under consideration, and examined using four elemental analysis i.e. Valuable, Rare, Costly to imitate and Organization to Exploit. The reputation of the organization is valued in the regions where it is found, leading to sustainable Competitive advantage. The services provided by the workers of the company show temporary competitive advantage, while skills of workers, the innovation and marketing strategy possess the competitive parity. This has demonstrated that the company is running its business in the market somehow efficiently. The application has also gained more popularity after being acquired by IKEA, which has given it a boost in its profit range. The company is doing so well and gaining more attention in all the countries where IKEA holds its business. The main reason behind this acquisition is to provide the services to IKEA’s customers in assisting them for better assembling of the furniture at lower rates. Although, some measures are required to be taken in order to retain its position in the market,and the sustainability of the trust of its customers. (See Exhibit 4)

Blue Ocean Strategy:

Blue ocean strategy is the key to upgrade the level of your business. It includes all the start-ups and pre-existing businesses which are running efficiently or facing problems, and thus losing control over their business. Hence the blue ocean strategy is based on five steps approach.

1. Get started:

Helps in the determination of point you should start with. It also provides guidance to be focused on the most appropriate areas to begin the transformation.

2. Recent positioning:

The clear identification of competitive environment gives you a better picture of current financial state.

3. Desired target:

It helps in better planning by opening the narrow paths that you do not want to walk on, giving you a better vision.

4. Imagine the desired target place:

Better guidance in the planning of your marketing strategy by the development of new competitive entry in the market.

5. Make your action:

This provides better way of making decision on what plan to be chosen in accordance with the prototyping,which will give better description of your product profile.

According to the strategic planning of Blue Ocean mentioned above, Task Rabbit needs to pay some attention towards a number of keys factors, which will surely help in moving up in the market. Like there is no option of rating the tasker in order to better understand the skills of the worker in his relative field, which will assist other customers in choosing the best one according to their requirement of work. Similarly, as Task Rabbit has been recently acquired by the IKEA, the furniture company that sales un assembled products, which has opened a way to expand its business services not only in the countries it is providing services in but also around the world as IKEA runs its business in more than 190 countries. This is the golden opportunity for Task Rabbit for the expansion of its services. There has been no evidence of the efficient payment of the customers, there is a need to develop an option for better understanding of the customer’s behaviour as well.  There is also a lacking of not providing the workers with yearly bonuses, which is required to retain the interest of the workers in the company and satisfy them. As half of the worker are excited to go for work, while half of workers are just okay with it.............

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