Subject category:
Strategy and General Management
Published by:
INSEAD
Version: 03/2023
Revision date: 28-Mar-2023
Length: 17 pages
Data source: Field research
Abstract
This case reviews how Park24, a Japanese company, solved the long-taken-as-given problem of the severe parking shortage in Japan's highly congested cities and created a brand-new market of short-stay central city parking, establishing itself as the unchallenged market leader.; The dire shortage of parking space in Japanese central cities was long taken for granted and viewed as unsolvable by parking service providers because of the scarcity and lofty prices of downtown land. Park24 saw that the solution to the parking problem was not building gigantic multi-storey car parks with concentrated parking spots but making parking available everywhere people went, like the convenience stores found on every corner. Instead of targeting large land plots for purchase, Park24 rented small patches of 'idle land' (small patches of unused land crammed between buildings) near popular destinations and launched Times, a low-cost, secure, automated parking service accessible 24/7. With Times, Park24 created a new and fast-growing market outside existing industry boundaries. It is a prime example of 'non-disruptive creation', a term coined by W. Chan Kim and Renée Mauborgne. Times parking in central cities complemented rather than displaced existing car parks. Through non-disruptive creation, Park24 unlocked huge unmet demand, addressed a long-ignored problem, and established a strong brand and a billion-dollar business.
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Time period
The events covered by this case took place in 1911-2023.Geographical setting
Region:
Asia
Subject category:
Strategy and General Management
Published by:
INSEAD
Version: 03/2023
Revision date: 28-Mar-2023
Length: 14 pages
Data source: Field research
About
Abstract
This case reviews how Park24, a Japanese company, solved the long-taken-as-given problem of the severe parking shortage in Japan's highly congested cities and created a brand-new market of short-stay central city parking, establishing itself as the unchallenged market leader.; The dire shortage of parking space in Japanese central cities was long taken for granted and viewed as unsolvable by parking service providers because of the scarcity and lofty prices of downtown land. Park24 saw that the solution to the parking problem was not building gigantic multi-storey car parks with concentrated parking spots but making parking available everywhere people went, like the convenience stores found on every corner. Instead of targeting large land plots for purchase, Park24 rented small patches of 'idle land' (small patches of unused land crammed between buildings) near popular destinations and launched Times, a low-cost, secure, automated parking service accessible 24/7. With Times, Park24 created a new and fast-growing market outside existing industry boundaries. It is a prime example of 'non-disruptive creation', a term coined by W. Chan Kim and Renée Mauborgne. Times parking in central cities complemented rather than displaced existing car parks. Through non-disruptive creation, Park24 unlocked huge unmet demand, addressed a long-ignored problem, and established a strong brand and a billion-dollar business.
Video trailer
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Time period
The events covered by this case took place in 1911-2023.Geographical setting
Region:
Asia
Related
Subject category:
Strategy and General Management
Published by:
INSEAD
Version: 03/2023
Revision date: 28-Mar-2023
Length: 14 pages
Data source: Field research