How they do it: Mobility’s value proposition is to have a model of shared car ownership. Hence, individual customers can avoid purchasing and maintaining a car but join the cooperative and thus get the right to use a car as they need it. As a lot of cars that are privately owned have significant downtime, the model of shared ownership increases the utilization of the individual car and thus lower the cost for everyone.
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How they do it: Dropbox file hosting space is not owned by the customer, but he can utilize it to store his files online. This eliminates the need for a physical hard drive.
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How they do it: Blockbuster leveraged exclusive agreements with publishers in order to pass on cost savings to customers. Customers paid a monthly fee for video rental. In addition to benefiting from a lower initial price, Blockbuster also capitalized on the fact that movies were generally not available for purchase at affordable price points during initial release periods. Thus customers had a choice to rent, wait, or buy the film on tape at the much higher manufacturer’s suggested retail price targeted at other rental chains and film enthusiasts, which at that time ranged between $70–$100 per title.
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How they do it: Car2Go users can use any of the companies cars for a fee per minute after registration to the service. The users can hence benefit from a car when in need of one free of the obligations and risks of actually buying and owning one. The company’s car can benefit from a much higher utilization than they would have with individual car owners.
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How they do it: Hilti’s ”Fleet Management” allows customers to rent its tools for a fixed monthly payment instead of needing to buy them. This contract includes the exchange of tools for the newest models as well as service and maitenance. The customer avoids a upfront investment and has an easy way to budget the tool costs going forward.
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