Swot Analysis of Vpsi, Inc.

SWOT Analysis of VPSI, Inc.

Section I - Organizational History

Vanpooling is a concept that has been around since as long as I can remember. According to the VPSI website, it has been around since the mid 1970s, which is when this company began. VPSI began when "two enterprising young men in Chrysler Corporation's Office of Public Responsibility launched the Chrysler Employee Vanpool Program as a way to conserve fuel and reduce vehicle emissions. The program was a success, so Chrysler organized a subsidiary company and gave us the mission 'to provide innovative transportation solutions'. Ever since, (VPSI has) been moving the world toward sustainability by helping people with their daily commute," .1 VPSI's corporate history began in the early 1970s, during the oil crisis, "and for the first time in history, (commuters) began to think about getting to work - without an abundant supply of cheap gasoline at our disposal."1 Today, that supply is extremely pricier, and therefore commuters are beginning to look for alternate means of transportation. So what is vanpooling? According to the National Transportation Library, vanpooling is defined as a group of seven to 15 people who commute together on a regular basis in a van. Companies sometimes own and operate vanpools, offering employees the chance to ride at a reduced rate as a "perk." Other vanpools are formed by individual commuters who want to find a better way to get to work.

Section II - Strengths and Weaknesses

I would consider two strengths of VPSI's to be cost savings and their approach to helping the environment. Two of VPSI's weaknesses are that customers must give up some freedom and that driver's of the vanpool must have an impeccable driving record.

Strength #1 - Cost Savings

Vanpooling saves commuters money from the time they join a vanpool. Unlike carpooling, vanpoolers can join a vanpool without actually owning the vehicle, without putting any wear and tear on their own vehicle and without having to pay for maintenance. And with the rising costs of gasoline, commuting to and from work is taking more and more money out of our wallets. VPSI provides a cost savings through vanpooling with other commuters. A van may typically hold 7 passengers and therefore the cost of the morning and afternoon commute is shared evenly among those 7 commuters. Additionally, some credits are also available to vanpoolers. For example, the state of Florida gives each vanpool a $400/month credit to help defray the cost of the vanpool and encourage commuters to use this service.

This is a distinctive competence because unlike alternative means of commuting, vanpoolers save money. According to the VPSI, vanpools account for the following savings monthly (nationwide). The following is a monthly average for February 2011:

Fuel saved (Gallons)2

2,856,930

National Average Fuel cost2

$3.21

Fuel savings (Dollars) 2

$9,173,603

Strength #2 - Reduces your carbon footprint

For years we have been told taught about green-house effects and about how we can be more environmentally responsible. According to CarbonTrust.co.uk, a carbon footprint is defined as the total greenhouse gas emissions caused directly and indirectly by a person, organization, event or product. Vanpooling reduces the amount of commuters on the road and therefore helps to reduce our individual carbon footprints.

This is a distinctive competence because according to VPSI vanpools account for the following environmental impact figures monthly (nationwide). The following is a monthly average for February 2011:

Daily Active Vanpools2

5,247

Daily Seating available2

51,623

Average daily passengers per vanpool2

7.9

Commuter trips per day2

82,597

Commuter trips (Cumulative) 2

1,734,533

Parking space saved per day2

36,051

Cars off the highway2

757,079

Trips eliminated per day2

72,103

Trips eliminated (Cumulative) 2

1,514,159

Vehicle miles eliminated (Cumulative) 2

71,994,646

Carbon Monoxide Reduction (Tons) 2

1,076.13

Carbon Dioxide Reduction (Tons) 2

27,712

Weakness #1 - Give up freedom

As with any good idea there is almost inevitably a downside. One in particular to vanpooling is that the riders have to give up some of the freedoms that they would enjoy if they commuted on their own. For instance, a quick stop at the supermarket on the way home may not be feasible if you commute in a vanpool. "The