MapQuest Company: Strength in Competitors Report
MapQuest is a well-established brand with tens of millions of people using the company’s routing providers. The company has a long history and has recently up to date its website to have the power to meet the needs of consumers higher. Nevertheless, customers’ loyalty is the only benefit of the company. MapQuest fails to provide timely updates in response to technological developments. It is reactive to the actions of opponents and supplies a very limited number of services. While Google and Yahoo repeatedly add new providers, MapQuest introduces the identical companies with a two-year delay. The research findings recommend that the low danger of recent entry of potential competitors offers MapQuest a chance to strengthen its management place in the marketplace. However, failure to react to the new technologies rapidly puts the company under the risk to be pushed out of the market by extra technology-oriented rivals.
MapQuest helps people find locations. The company has more than 30 years of working historical past and has headquarters in Denver and Mountville. Ten years ago, the company launched Internet, Wireless, and Business Solutions merchandise worldwide. According to the corporate strategy, MapQuest is devoted to providing more mapping, instructions, and navigational companies to help clients find and get to anyplace. The organizational mission and management philosophy aren’t clearly defined on the official web site of the corporate. MapQuest is essentially the most acknowledged and trusted model on the web. It is a leading shopper Web web site for maps and directions. It serves more than 50 million users each month and has successfully prolonged desktop experience into mobile devices (MapQuest – Corporate Overview 1). The firm supplies geospatial platforms enabling web and wi-fi applications for approximately 1,400 global brands.
Porter’s 5 forces model
The threat of new entry by potential opponents is low. ProQuest attracts more than 70 percent of all prospects looking for mapping services. The other 30 p.c are divided by two opponents. The leading global search engines like google (Google, Yahoo, and MSN), management the market and minimize the specter of new entries by opponents. The small variety of competitors ends in a excessive diploma of rivalry amongst established corporations within the business. Google and Yahoo supply the same packages of companies. Three firms are rivals and fight to the market share. According to statistics, the variety of web users has elevated by 7 p.c, while the variety of individuals using MapQuest has remained the same (approximately 70 percent). Thus, Yahoo and Google have an opportunity to extend their market shares. The bargaining energy of buyers is critical because internet customers have low loyalty to particular search engines like google. Nevertheless, according to current statistics, Google is answerable for 80 p.c of all web queries. The bargaining energy of suppliers is low as a outcome of MapQuest offers providers, not merchandise. The threat of substitute products can also be low because of the insignificant risk of latest entries by potential rivals.
MapQuest presents providers to the worldwide inhabitants; nevertheless, the major emphasis is made on the American population. Economic circumstances within the nation are favorable. The target demographics are people who journey – these are the majority of the American inhabitants. Social factors have an insignificant impression on MapQuest operations. Global and political elements haven’t any influence over MapQuest’s business actions. Technology, on the contrary, is the one issue that has a direct impression on a company’s operations. Nevertheless, as the latest press releases suggest, the corporate is dedicated to technological progress despite the very fact that slowly reacts to the innovations.
The variety of individuals visiting MapQuest just isn’t altering within the last two years. It is a good and a foul signal at the same time. It is good as a outcome of it is an indicator of customer loyalty. It is bad as a outcome of it signifies that the market share of opponents is increasing. Yahoo has a 32 % share, while Google has a 25 percent share (“Competitors Nip at MapQuest’s Biz” 1). MapQuest stays a pacesetter for some purpose, as McGloin, the general supervisor of MapQuest, has noted, the main place is attributed to corporate technique in accordance with which close attention is paid to the needs of consumers. MapQuest has offered a new service – satellite images, nevertheless, they weren’t helpful. The identical service supplied by Google has turn into very fashionable. In particular, Google Earth was used to help people affected by Hurricane Katrina to tag maps and messages on how individuals had been doing after the hurricane.
MapQuest is visited by 50 million people monthly. No information is available concerning the sources and capabilities of the corporate. However, the current launch of the brand new beta model indicates that the company is constantly enhancing its companies to meet the needs of customers better. New options added to the positioning embody the power to see the map and driving instructions on the same page, opportunity to create routes for multiple cities, simplification of the navigation to a one-box approach, choice to save heaps of routes and share maps with pals, and zooming possibility (Schonfeld 1). MapQuest plans to add the next features: speedy clip, dragging location pins, live traffic, and map annotation by web site visitors. MapQuest Company is based on new expertise architecture and stays targeted on driving directions and routing. It currently employs Web 2.0 options which considerably improve the core mapping features (Schonfeld 1).
MapQuest remains a pacesetter; however, market forecasts aren’t very favorable for the company. Most of the brand new options introduced by the site this October are already out there on Google Maps and Yahoo Maps. MapQuest has failed to supply new companies and options. In addition, the current update was the first within the last 8 years (the earlier replace was done in 1999). MapQuest does not have a proactive corporate technique. On the contrary, the strategy is reactive: Google Maps provided technology on mobile devices in 2005 which enabled customers to maneuver maps in any course simply (Schonfeld 1). MapQuest offered the same service solely two years later. Yahoo, for example, is testing with including more forms of information (subway locations), whereas MapQuest isn’t expanding the range of services (Schonfeld 1). Competitive evaluation indicates that MapQuest could be very susceptible to innovations built-in by key competitors and is susceptible to losing market share.
SWOT Analysis. The key power of MapQuest is the loyalty of customers. The firm has an extended history and is delivering routing companies for greater than 30 years. However, the reactive technique is a big weak spot that places the corporate susceptible to shedding market share to opponents. Rare web site updates (once in eight years) cannot meet the wants of consumers because the location is gradual to understand the technological improvements showing each month. MapQuest is at risk of being pushed out of the market. Competitors provide various services which allow shoppers to visualize the locations they plan to attend somewhat than find the routes. Google, for example, added maps with the store places and the lists of value variations in particular areas. Nevertheless, MapQuest has an opportunity to stay the leader within the trade if more attention is paid to the diversification of providers and continuous website improvement.
MapQuest is present on the web for more than ten years and based on the article titled “MapQuest Stays the Course – with Tweaks” the purchasers are loyal to the company due to: 1) concentrate on the usefulness of information, 2) financial viability, and 3) focus on the mass market (Watkins 1). Consumers have an established imaginative and prescient of MapQuest because the source of maps and directions and their loyalty, the key company energy, ought to be became a possibility to broaden company operations. First, the company has to conduct aggressive analysis regularly and hold monitor of the new applied sciences. The technique should be turned from reactive to proactive. Second, site updates must turn into regular and happen at least once every three months. Third, extra attention should be paid to further services. In addition to routing and directions, MapQuest ought to introduce different helpful companies which could be useful to web site visitors (similar to pricing lists provided by Google). Fourth, MapQuest ought to give its consumers a chance to rate the providers and provide reviews (“A new MapQuest beta with not a lot new” 1). Consumers might give priceless recommendation on the means to improve the site providers. Finally, MapQuest should offer its consumers a chance to embed maps on their very own sites and to observe stay site visitors. Both of these companies are provided by opponents and are rated very high. In conclusion, MapQuest’s strategy must be reviewed to turn out to be extra responsive to technological innovations and altering consumers’ wants.
“A new MapQuest beta with not a lot new.” Blog.Agrawals.Org 2007.
“Competitors Nip at MapQuest’s Biz”. Associated Press. 2005.
MapQuest – Corporate Overview. MapQuest Official Website. 2007. Web.
Schonfeld, Erick. “Exclusive: MapQuest Plays Catch-Up With Launch of Beta.” TechnoCrunch.Com. 2007.
Watkins, Laura. “MapQuest Stays the Course — with Tweaks” WordPress.Com. 2007. Web.