Team project on U-Haul

Opportunities- what conditions/developments outside the firm provides an opportunity for the firm to capitalize on

An increase in online shopping is one outside condition that U-Haul capitalizes on. When there are major increases in shipping (usually during the holidays), delivery companies, such as Fed-Ex and UPS, will rent extra trucks instead of investing in purchasing trucks they only need a few months out of the year. This saves the delivery company money on equipment and it allows U-Haul to profit during a usually slow time. U-Haul’s busy season is usually the summer months so when that slows down, they can capitalize on the increase in shipping to continue keeping profits up.

U-Haul offers a propane tank service. This allows them to capitalize on changes in weather conditions. When it gets cold outside, many people need propane tanks for heating houses and campers. This would be especially profitable in states that have longer, colder winters.

An outside condition that brings large amounts of business to U-Haul every year is college. The students move into and out of dorms and apartments over the summer. This creates a need for moving trucks, trailers, trailer hitches for people who have their own trailers, storage units, and boxes/packing supplies.

Natural disasters and pandemics, such as the one we have experienced this year, are also outside conditions U-Haul can capitalize on. During natural disasters, U-Haul rents out trucks, trailers, U-Box containers, propane tanks, and storage units to people being displaced and people transporting equipment and supplies to help affected areas.

At times U-Haul has even been able to capitalize on other businesses going out of business or shutting down locations. They can purchase these empty buildings at a lower cost than building their own and repurpose them. It not only helps U-Haul but also helps the economy in the cities they do this in. It brings jobs and income to places where many people lost their jobs and large amounts of income when other larger business have shut down. One example of this was in 2012 when U-Haul purchased the former Nabisco building that was shut down due to the recession. They reinvested in Detroit and turned that building into a self-storage facility. This would bring jobs and income to the still hurting economy while allowing U-Haul to profit from lower costs of opening a new facility. (https://www.insideselfstorage.com/companies-and-products/u-haul-opens-detroit-self-storage-facility-converted-nabisco-building)

U-Haul has an opportunity to capitalize in a recession because of the high rates of foreclosures and evictions. They might have to lower their prices to stay competitive and affordable in a declining economy but they would still be profiting because people have to have a means to move and possibly store their things while they get back on their feet.