Questions for Discussion 1. Evaluate Zipcar based on benefit-based positioning. Looking at the benefits of the service, we can conclude that Zipcar is doing a good job; as well, they are always working to improve the quality of the service for the customer. The car-sharing concept was introduced to the customers with the proposal to be an alternative for the traditional car-rental service, offering convenience with an easy process model “join, reserve, tap and drive” and facilities as mobile platform
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John Grassi In the year 2000, a one hour rental of Zipcar would be worth approximately $9.54. This number was created through a combination data collected by The Federal Highway Administration (FHWA) and the United States Bureau. According to the FHWA, ownership and operating costs of an intermediate size vehicle in the year 2000 averaged $.469/mile. This number is broken down into 8 different costs per mile: 1. Repairs- 0.9 cents 2. Depreciation- 16.4 cents 3. Fuel Tax – 1.9 cents 4. Fuel
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Question #2 Porter’s Five Forces Model – Zipcar, Inc. Threat of New Entrant ZIpcar’s IT infrastructure would be hard to replicate. They have a strong competitive advantage with their patented wireless technologies and proprietary information systems that create entrance barriers for new competition. Bargaining Power of Buyers Zipcar provides a membership based business strategy and a fully automated reservation system. GPS location services, membership accounts, and reservation modifications
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characterize the service that Zipcar provides? Why does Zipcar exist? What consumer needs was it designed to meet? Which firms are its competitors? Zipcar is in a nut shell a US headquartered car membership based car sharing program that provides automobile reservation and use to its members. This concept started in Boston by two entrepreneurs named Robin Chase and Antje Danielson in the end of 1999. This year 2013, a deal was struck where Avis Budget Group acquired Zipcar for $500 million in cash
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EZONFADE, ALMA 8010500 ZIPCAR: REFINING THE BUSINESS MODEL • Develop a business model canvas for Zipcar. Key Partners Key activities Value Proposition Customer relationships Customer Segments Automobile companies Operational leasing Convenience Self service Parking lot companies Car Rental Ease of use Phone and website based customer support Mobile & Web interface People who wanted the convenience of a private vehicle to run occasional personal errands
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advantage model is sustainable for Zipcar, because the company has created a model that is complex and difficult for other companies to emulate. Rental car companies such as Avis, Budget and Enterprise would be unable to switch to Zipcar’s model due to their old existing traditional infrastructure. Zipcar’s model provides multiple benefits to the customers, such as pay per hour, paperless renting process etc. Zipcar also has good business strategy. For example, Zipcar is targeting college students as
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Zipcar Porter’s Five Forces of Competitive Position for Zipcar Porter’s five forces analysis is supposed to provide a very simple perspective for assessing and analyzing the competitive strength and position of a company, in this case Zipcar namely. The analysis can be outlined as follows. The competitive rivalry force for Zipcar is moderate to strong. The major competition is faced from other rental agencies that provide similar services. Nevertheless, the company
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rental business has grown to over twenty four billion dollars industry. The major players include Hertz, Avis, Enterprise Holdings (Includes Alamo Rent- A- Car, Enterprise Rent-A-Car, and National Car Rental), Avis Budget Group (includes Payless, not Zipcar), Fox Rent A Car1, Advantage Rent-A-Car2, and ACE Rent A Car. Also there are other players like U-Save Auto Rental System (owned by FSNA), Rent-A-Wreck of America, Triangle Rent-A-Car, Affordable/Sensible, ZIP car, and many other independent car rentals
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05/25/2015 Miller-Motte College Online Program 2 Company Case 1) Evaluate Zipcar based on benefit-oriented positioning. Zipcar has taken a unique approach to their benefit orientation with customers. The background behind Zipcar is that the company offers rental cars to everyday people. These rental cars accommodate the customers by eliminating the costs of car payments and paying for gas. Ultimately, Zipcar eliminates much travel time and strives to streamline transportation in highly
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“Does IT Matter?” Assignment ZipCar 1. Zipcar/Porter’s five forces analysis Threat of New Entrant Zipcar’s use of a simple IT solution to find, reserve and use a car sharing service creates a slight barrier for new entrants. However, there is a constant threat to Zipcar in new car sharing companies and established car rental agencies adjusting their corporate strategy in order to enter the hourly rental industry. The barriers to entry are the high costs of inventory and creating an IT solution
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