Strategic Innovation: Park24 - Reinventing the Parking Industry in Japan

Published 29 Oct 2018
Reference 6438
Topic Strategy
Region Asia
Summary

The case reviews how the Japanese company Park24 reinvented the short-stay parking industry in Japan and expanded it over the years, establishing itself as the unchallenged market leader. Hitherto short-stay parking in Japan was largely provided as a public service. Shortage of land and the high price of real estate explained the severe shortage of city parking space was due to land scarcity and lofty prices of land resources. Park24 saw that the solution was not building gigantic multi-storey car parks but making parking lots available everywhere people went and accessible anytime of the day. Drawing insights from the convenience store industry, Park24 looked for small plots near popular destinations and launched a low-cost, secure and automated parking service called Times. Rolled out rapidly across Japan, it fundamentally redrew the landscape of the short-stay parking industry. Park24's blue ocean move shows how a nondisruptive market-creating approach can open up new value-cost frontiers, new demand and high growth. The case comes with a teaching note, a first-hand interview with Koichi Nishikawa, Park24 President, and lecture slides. The slides and videos can be downloaded for teaching purposes from https://www.blueoceanstrategy.com/teaching-materials/park24/

Teaching objectives

The teaching of this case aims to investigate and discuss how Park24: 1) Gained insight into creating a blue ocean from non-customers of the existing short-stay parking industry and analyzing their pain points. 2) Redrew the landscape of short-stay carparks in Japan by borrowing key elements from the convenience store industry. 3) Redefined the industry problem (parking) and provided a new solution, opening up a huge new market via non-disruptive creation.

Keywords
  • Differential costs
  • Blue Ocean Strategy
  • Creating markets
  • Japan
  • Parking
  • Reshaping market
  • Nondisruptive creation
  • Unattractive industry
  • New market space
  • Market creation
  • Blue Ocean Shift
  • Noncustomers
  • Strategic Innovation
  • Market reconstruction
  • Strategy
  • Q11819