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.
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...