Case 6.2 Analysis
Zipcar: A Business Model Innovator That’s Changing the Way People Think About Cars.

1. Answer: Zipcar has created a model that would be difficult for other companies to imitate with its technology infrastructure and low over-head. I think the motivation of Zipcar is the innovation services and customer first basic purpose. The initial business plan of Zipcar was to provide the convenience of owning a car, without actually having to pay for all the expenses of actually owning a car. They wanted to target those that needed a car for only a few hours, as compared to renting a car for a whole day. Zipcar is the perfect answer for customers who wanted to rent a car for few hours in their home city. That just goes to say that Zipcar had a target niche market and fully utilized technology in their business modeling. The convenience of the car renting process to Zipcar’s customers makes it very likely that they get repeat patronage, giving them a sustainable advantage. About the scale, I would like to give it 4.

2. Answer: Yes, I think Zipcar has a good story to tell. About the question of accessing to market, the company’s target customers are educated and internet savvy urban dwelling people, so I think it’s easy for Zipcar’s employees to clearly explain what they do and what the benefits of its service which is non-car owners will have the service at their disposal whenever they require thru reserving it on the web.

3. Answer:
Core Strategy: Zipcar’s business mission is envisioning a future where car-sharing members outnumber car owners in major cities around the globe. The company provides automobile reservations to its members, billable by the hour or day. Contrary to the traditional methods of car renting where customers had to stay on long queues to rent a car at a higher cost with possible friction from human interaction and without the guarantee of getting a car of choice, Zipcar’s business model addresses all these problems by fully utilizing technology from the reservation stage all through to the return stage at a minimal cost to the customer.

Strategic Resources: the core strategy of Zipcar is service innovation. The company gains their competitive advantage by embracing Web 2.0 technologies. It was one the very first few organizations to utilize wireless technology to its advantage. The distinctive competence it developed around this technology meant the company had to create several new technological processes.

Partnership Network: By partnership with city governments, landlords, colleges, and business owners, Zipcar has formed a dedicated team of customers who evangelize the company to potential renters that produce resonance with drivers or customers. Many big car companies provide their cars to Zipcar. Its fleet was predominately made up of Volkswagen Golf and Beetle but has expanded to make it more attractive to drivers who first concern was style and not gas mileage. For example, mini-coopers, scion vans, and SUVs such as the Toyota Highlander and Ford Escape were introduced. And also they have entered into several partnerships in its markets including several universities, such as Harvard, University of North Carolina, the fact that 98% of Zipcar’s users are on college campuses is becoming an integral part of commuter choice was key to partnering with these schools.

Customer Interface: The target customers of Zipcar are educated and internet savvy urban dwelling people. Customers can make reservations online without having to purchase a car but rent one and pick up in a nearby area/neighborhood. Customers just needed to pay monthly fees and put in a deposit to be able to have access. Customers can make reservations online and for certain time frames. Customers can also choose the type of car to drive. Reservations could also be made minutes before or a year before online or via phone. The members used a car to open the Zipcar for usage and made it easier to coordinate operations. Pricing structure: customers did not have to pay for gas, insurance, parking spots, etc instead of paying the annual membership fee.
I think the innovation service idea is hard to replicate. Even with the factors in place to make this easier, it will take some good ideas.

4. Answer: Yes, I think Zipcar is growing too rapidly. When a business is growing too rapidly, it significantly increases the demands on each individual employee, and on your team as a whole. This can easily lead to stressed-out employees, Zipcar’s service based on the wireless devices, so it does not require too many human resources. Another one is infrastructure often lags behind financial growth. The company needs to pay as much attention to the execution of the operations, for example the car exchange, providing customers cars in good condition.

Application Questions
1. Answer: In the short-term, Zipcar will face the threat of new entrants, potential new entrants include existing car rental firms, companies that currently supply cars to car-sharing businesses (such as Volkswagen), and new start-up car-sharing ventures. Another is the threat of substitutes: Major substitutes are taxi, rental car and public transport services.
In the long-term, the company is still establishing itself in many of its markets, and as it does so margins should increase. But the fact is that Zipcar is struggling with slowing growth, increasing competition and is simply unable to grow outside the USA in any meaningful way. European markets are different, well developed and highly competitive. Zipcar is the pioneer of a new model for car rental in the United States, but outside the USA, Zipcar is not the ‘inventor of a category’.

2. Zipcar vs. City Car Share
Car sharing is a common occurrence in the current world because people wish to save on fuel. Both Zipcar and City Car Share companies offer commendable car sharing services. The two organizations have diverse differences and similarities in the business models that they apply to their organizations. City Car Share model seems to be superior to Zipcar’s.
Similarities
Both companies serve a similar market that includes individuals, companies and universities. They serve their client through a reliable online system and phone system at any time. According to Capon (2009), car-sharing companies must be speedy in serving all their clients. Both organizations realize that their market’s competitive and apply exemplary business models. They also ensure that their clients have insurance coverage before using their cars (Capon, 2009).
Differences
Zipcar has out of state of options unlike City Car Share, whose operations are within states of operation. It also has lower insurance coverage for its clients. The organization requires a return tank of ¼ while CCS requires ½ full tanks while returning. Zipcar seems to focus on a youthful clientele while CCS has a general clientele who just wish to use their cars (Hitt, Hoskisson, & Ireland, 2012).
City Car Share’s Superiority
This company appears more superior because it has several luxurious that have perfect maintenance. It has electric options and its cars are more available than Zipcar’s. Its customer service is excellent and keeps attracting more clients. The business model that it uses allows it to serve several neighborhoods regardless of the minimal cars that each neighborhood has (Millard-Ball, N. R. C. T. D. C., & États-Unis. F. T. A., 2005). Any company that wishes to offer car sharing services needs to apply a perfect business model. This will involve reducing operational costs and increasing its profit margins.

References
Capon, N. (2009). Capon's marketing framework. Bronxville, N.Y: Wessex.
Hitt, M. A., Hoskisson, R. E., & Ireland, R. D. (2012). Strategic management: Competitiveness & globalization: cases. Mason, OH: South-Western, Cengage Learning
Millard-Ball, A., National Research Council (É.-U.). Transit Development Corporation., & États-Unis. Federal Transit Administration. (2005). Car-sharing: Where and how it succeeds. Washington, D.C: