Introduction of a New Transport Service on the Finnish Market

Abstract

The aim of the thesis was to identify whether there would be a market for new personal transport service in the Capital region of Finland (Helsinki, Espoo, Vantaa and Kauniainen). The service is a driver-rental service that resembles taxi service with the difference being that the customer is driven to his destination in his own car. Research questions were: is the service feasible in Finland and is there a market for it in the Capital region of Finland? To answer these questions the author used literature and electronic sources review, Porter’s Five Forces Model, SWOT analysis and a survey to conclude that the service would indeed be feasible in Finnish Capital region. The thesis was limited in geographic scope to Capital region of Finland, in scope of the analyses done it was limited to strategic analyses and preliminary marketing survey. The results of the strategic analyses show that the prospective market for the service would be a small niche with strong competition of substitute services, strong suppliers, strong competition within the industry and moderately strong customers. Should a new entrepreneur enter the market it would face prospect of more threats than opportunities on the market. Survey results show that there is high acceptance level for the service and that the preferred price level of the service should be below the taxi service prices and prices charged by public transport operators.