Vroom Inc. SWOT and PESTLE Analysis

ID : 52985853| Feb 2023| 22 pages

COMPANY PROFILE -Vroom Inc.

Business Sector :Automobile Retail, E-Commerce

Operating Geography :United States, North America

About Vroom Inc. :

Founded in 2013, Vroom is a used automobile retailer and e-commerce company, headquartered in New York City, United States. It capacitates its consumers to buy, sell and finance cars online. It sells new as well as used cars, spare parts, and accessories, along with providing services like maintenance, repairing, funding, insurance, and vehicle renting. The subsidiaries of the company include CarStory, Texas Direct Auto Inc., Vast Holdings, Inc. The company was founded by Allon Bloch, Elie Wurtman, Scott Chesrown, Kevin P Westfall. Elie Wurtman and Allon Bloch joined the company as co-founders in November, 2014 and transformed the company into a technological platform. The company was thus renamed Vroom. It has a refurbishment facility in Stafford, Texas. Vroom is an e-commerce company that tackles and handles the entire e-commerce transaction, rather than functioning as a peer-to-peer marketplace and it does not indulge in haggle pricing. It offers financing from more than 12 banks, while it delivers cars to customers throughout the world. All the cars sold by Vroom are reconditioned. Proprietary RFID tracking along with prioritization software are used by the company to automate the process of refurbishment. This American ecommerce auto retailer, also provides a seven-day money back guarantee on purchases along with a 90-day bumper-to-bumper warranty. Customers, who receive a cash voucher after submitting photos and information about the car online, can also sell cars to Vroom. Vroom announced the successful completion of its acquisition of United Auto Credit Corporation (UACC), a recognized leader in automotive finance, on February 20, 2022. Vroom's strategy of establishing a captive finance arm to support sales growth, improve unit economics, and create long-term value for its shareholders is being accelerated by this acquisition.

Vroom's Unique Selling Proposition or USP lies in it providing an end-to-end e-commerce platform to its consumers for buying and selling used and second-hand automobiles. Vroom's mission statement states, "help people find their drive".

Vroom Inc. Revenue :

$ 3.184 billion - FY ending 31st December 2021
$ 1.357 billion - FY ending 31st December 2020 (y-o-y growth 13.94%)
$ 1.191 billion- FY ending 31st December 2019

Competitive Analysis of Vroom Inc.

SWOT

PESTLE

The SWOT analysis for Vroom is presented below in a matrix followed by the detailed analysis report:

Strengths	Weaknesses
1. Has gained competitive advantage by using data science over traditional methods. 2. Very large inventory backed by high quality products. 3. Very strong national brand presence results in geographically widespread sales. 4. Selling value added products helps in better customer satisfaction.	1. Has not declared a profit since commencement of business in 2012.
Opportunities	Threats
1. Acquisition of CarStory will significantly improve its technology. 2. Consumer buying patterns are changing favorably towards used goods. 3. Expansion of logistics network will shield company from third party losses and reduce costs.	1. Intense and increasing competition in the market. 2. Adverse impact of Covid-19 expected to continue through 2021. 3. Currently subject to a securities fraud class action lawsuit that will cause complications. 4. Increasing focus on e-vehicles, autonomous vehicles and ride hailing services may threaten sales.

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Detailed SWOT Analysis of Vroom Inc.

Strength

1. Gained competitive advantage by using data science over traditional methods: While a wide majority of the automotive retail industry continues to use intuition and market wide data to predict sales and demand, Vroom has applied data science and algorithm to maximize efficiency. They use A/B testing and multivariate testing methodologies to improve unit economics, marketing and sales processes. Vroom has a team of over 40 data scientists and millions of data points are added to its servers daily. Based on the traits of these data points they set their national price and based on the price, they create a model for sales velocity. Their algorithms predict sales for the next 60 days with a 2% margin of error. They use AI and machine learning to enhance performance marketing, brand marketing and national sales. Between the first quarter of 2019 and 2020, Vroom recorded over twofold increase in brand leads.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

1. Acquisition of CarStory will significantly improve its technology: Vroom has earned popularity in the industry for making usage of data science and artificial intelligence to improve its marketing, supply chain and pricing. This has already proven to be an advantage against local dealerships which do not have the same resources. The company further strengthened its technology game by acquiring CarStory in January 2021 for 120 million dollars. CarStory is a market leader in AI powered analytics and digital retail for the automotive retail industry. It uses a machine learning platform to examine more than 7 million used car listings per day and more than 18 million consumer listings per month to provide the industry's best predictive market data. This acquisition will make Vroom even better positioned at matching the right car to the right user and is expected to accelerate their path to profitability and industry domination.

The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

The PESTLE analysis for Vroom is presented below in a table followed by the detailed analysis report.

Political	Economical
1. White House’s $174 billion stimulus proposal to the EV industry could harm traditional vehicle sales.	1. Rise in prices of used cars due to global semiconductor shortage. 2. Increasing demand for ride hailing and ride sharing services a threat to car selling companies. 3. US’s used car market is expected to be valued over $800 billion by 2026.
Social	Technological
1. Public divided over buying cars online. 2. People prefer buying used cars over new ones.	1. Prevalence of automated vehicles will harm demand for traditional vehicles. 2. Usage of AI will improve market advantage.
Legal	Environmental
1. Class Action lawsuit for misreporting business details is a threat to operations.	1. Increasing environmental regulations on traditional cars.

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This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase.

Free Summary Report

This report contains the table contents only. In case you need the complete report please purchase using the buy options displayed.

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SWOT & PESTLE (combined)
Complete Report
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Detailed Pestle Analysis of Vroom Inc.

Political

This section is available only in the 'Complete Report' on purchase.

Economic

1. Rise in prices of used cars due to global semiconductor shortage: The prices of used cars are predicted to rise due to a global shortage of semiconductors. This shortage is cramping the production of new cars and specific models which will raise the demand for used cars as buyers look for alternatives. The shortage has been accelerated by the pandemic and has already started affecting market leaders such as General Motors, Ford, Honda and Toyota. The prices of used cars were already on the rise due to slow production of new cars as a result of COVID-19 and in fiscal 2021, they are expected to rise further due to the scarcity. Owing to its large inventory, Vroom is expected to gain from the semiconductor shortage – at least in the short run as people look for alternatives. If the shortage is not solved eventually and seriously affects car production then the company could suffer from an inventory crunch.

The remaining section under "Economic" is available only in the 'Complete Report' on purchase.

Social

This section is available only in the 'Complete Report' on purchase.

Technological

This section is available only in the 'Complete Report' on purchase.

Legal

This section is available only in the 'Complete Report' on purchase.

Environmental

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

Carvana
AutoNation
CarMax
Autotrader
Cox Automotive

Major Brands :

CarStory
Texas Direct Auto Inc.
Vast Holdings Inc.

Sample Complete Report

This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase.

Free Summary Report

This report contains the table contents only. In case you need the complete report please purchase using the buy options displayed.

* By clicking on "Buy Now" you agree to accept our "Terms and Conditions."

SWOT & PESTLE (combined)
Complete Report
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On purchase the Vroom Inc. SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.

DELIVERY AND FORMAT

WHY CHOOSE US?

You may also be interested in other analyses of Vroom Inc.:

Vroom Inc. Porter's Five Forces Analysis
Vroom Inc. VRIO Analysis
Vroom Inc. Value Chain Analysis
Vroom Inc. Covid-19 Impact Analysis
Vroom Inc. BCG Analysis
Vroom Inc. Segmentation, Targeting and Positioning (STP) Analysis
Vroom Inc. Ansoff Matrix Analysis

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Vroom Inc. SWOT and PESTLE Analysis

COMPANY PROFILE -Vroom Inc.

Business Sector :Automobile Retail, E-Commerce

Operating Geography :United States, North America

About Vroom Inc. :

Vroom Inc. Revenue :

Competitive Analysis of Vroom Inc.

Detailed SWOT Analysis of Vroom Inc.

Strength

Weakness

Opportunity

Threat

Detailed Pestle Analysis of Vroom Inc.

Political

Economic

Social

Technological

Legal

Environmental

Major Competitors :

Major Brands :

TABLE OF CONTENTS

DELIVERY AND FORMAT

WHY CHOOSE US?

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