StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Zipcar case study - Essay Example

Cite this document
Summary
However, these suppliers are not efficient and some charge high prices. Only Zipcar stands out as the most accessible, affordable, and efficient rental agency.
Zipcar has a unique business strategy (Pearlson and Saunders…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.2% of users find it useful
Zipcar case study
Read Text Preview

Extract of sample "Zipcar case study"

Zipcar Case Study Porters’ Five Forces Model A. Bargaining power of suppliers There are numerous traditional car rentals in the market. However, these suppliers are not efficient and some charge high prices. Only Zipcar stands out as the most accessible, affordable, and efficient rental agency.B. Barriers for new entrants in the marketZipcar has a unique business strategy (Pearlson and Saunders 75). The strategy allowed customers to reserve cars online, access car parking, return the car, and pay for services rendered without any delays.

The strategy also included a patented wireless technology that enhanced communication between Zipcar and its customers (Pearlson and Saunders 75). New entrants required a lot of capital and skills to match this strategy hence barring them from entering the market. Zipcar charge cheap prices for long distances as compared to other rental companies. New entrants will find it hard to charge such prices.C. Threat of substitutesThere are many substitutes in the market for car rental services. Indeed, buyers can easily choose to switch to other rental services if Zipcar fails to meet their needs.

Buyers can use personal cars, family cars, public transport, or taxis.D. Bargaining power of buyersBuyers have medium bargaining power where they have a chance to switch to other rental services if Zipcar does not meet their needs. The market has many buyers but only few have the capacity to influence market forces. However, the increasing number of online buyers can influence market prices in the future.E. RivalryMany car rental companies in the market compete with one another in terms of prices.

The companies provide the same services. There is no service or price differentiation in the market.The synergy between the business strategy for zipcar and information technology is very important (Pearlson and Saunders 75). Zipcar uses information and technology to enhance growth by helping the company to offer improved and efficient services.The network effects that are part of the strategy for zipcar are zipsters. They are social networking technologies used to develop an online community (Pearlson and Saunders 75).

The zipsters add value to the company by encouraging community development and creating good relations between Zipcar and the customers.As the CEO of zipcar, I realize that the services offered and the price of the services threatens my competitive advantage. To sustain a competitive advantage, I would offer flexibility services, maintain cars, and charge affordable prices.Works CitedPearlson, Keri E, and Carol S. Saunders. Managing and using information systems. A strategic approach. 4th Edition.

New Jersey: John Wiley & Sons, Inc., 2012. Print..

Read More
Tags
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Zipcar case study Essay Example | Topics and Well Written Essays - 250 words”, n.d.)
Retrieved from https://studentshare.org/business/1675099-zipcar-case-study
(Zipcar Case Study Essay Example | Topics and Well Written Essays - 250 Words)
https://studentshare.org/business/1675099-zipcar-case-study.
“Zipcar Case Study Essay Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/business/1675099-zipcar-case-study.
  • Cited: 1 times

CHECK THESE SAMPLES OF Zipcar case study

Zipcar: Refining the Business Model

zipcar: Refining the Business Model Table of Contents A 3 Evaluation of the Potential Venture & Progress 3 B 4 Business Model 4 Changes between December 1999 to May 2000 4 Implications of Actual Operations in September 5 Comfort or Concern 5 C 7 Actions that can be taken by Chase 7 A Evaluation of the Potential Venture & Progress The venture of zipcar by Robin Chase and Antje Danielson has been operating in the US market due to the demand for such services.... Chase and Danielson had researched in 1999 about the European market, the UK market, the US market and other markets as well to develop its zipcar business model....
3 Pages (750 words) Case Study

Analysis of Business Model of Zipcar

A person from large company was hired to make a strong team but the case was reverse.... Robin Chase and Antje Danielson, the co-founder of zipcar had made a plan to start up the business venture in 1999.... hellip; Robin Chase and Antje Danielson, the co-founder of zipcar had made a plan to start up the business venture in 1999.... zipcar Table of Contents 0 Evaluation of the Potential Venture and the Progress made by Chase 3 2....
4 Pages (1000 words) Case Study

Zipcars Business Motivational Model for Customers and Partners

… Name: Instructor: Task: Date: case 4.... & case 6.... Discussion Questions of case 6.... Discussion Questions of case 4.... As a business organization, zipcar recognizes that the main problems inflicting most people in urban areas are the traffic congestions and high cost of living.... zipcar's Business Motivational Model for Customers and Partners As a business organization, zipcar recognizes that the main problems inflicting most people in urban areas are the traffic congestions and high cost of living....
3 Pages (750 words) Case Study

Management Functions and Advantages of Employee Diversity

The management also enables others to work, in this case, its employees as evidenced by the workers who... On the first function, planning, Luis Vuitton decided to capitalize on the success of its Murakami line after canvassing store managers and finding that the customers were most interested in the murakami shoulder bag (Bloomberg Businessweek Magazine 1)....
11 Pages (2750 words) Case Study

SWOT analysis

A close analysis of the case study of Zipcar shows that it has more strengths and opportunities compared to threats and weaknesses.... Salter & Andre Tuinzing, ‘Virgin Atlantic case study,' 2005, Dominican University of California.... Basically, strategy formulation builds on SWOT analysis in order to utilize strengths of the organization so as to be in a position to capitalise… As such, this paper seeks to carry a SWOT analysis for Zipcar from the case attached. The company also has a culture of innovative service and it is customer A SWOT analysis is concerned with identifying a firms internal strengths and weaknesses and their external opportunities and threats....
2 Pages (500 words) Case Study

Zipcar It's Not about Cars It's about Urban Life

hellip; This essay tells that making effective use of marketing principles to gain the current success in a short span of time, Zipcar is the focus of this study to highlight their benefit-value positioning success and future prospects.... Making effective use ofmarketing principles to gain the current success in a short span of time, Zipcar is the focus of this study to highlight their benefit-value positioning success and future prospects for the business (Kotler and Armstrong, 1991)....
2 Pages (500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us