Zipcar Case Analysis

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ZIPCAR CASE ANALYSIS

The pain that Zipcar is trying to address is the inconvenience and costly car options to the web-connected people. Based on our analysis of the case we think Zipcar’s business is easily imitable and to prevent an entry of new competition, Zipcar must achieve economies of scale at the earliest and strategize to increase their customer base and lower their customer attrition going forward. In the long run, the success of the Zipcar would depend on how many customers they have and the ability of Zipcar to leverage on their economies of scale. We would also recommend on how they can more wisely choose their type of cars, promote their brand and most importantly how they can raise funds at the upcoming Springboard conference.
Though the primary emphasis of Zipcar is on convenience and cost savings, the Zipcar concept is planned to be marketed as environmentally friendly. We feel this is an additional pain that Zipcar is trying to address that poses risks because, firstly, there are other two similar companies in US (Portland-based Car Sharing Inc. and Seattle- based Flexcar) that are already more focused towards the environment friendliness. Secondly, if Zipcar really wants to market their product as environmentally-friendly, then they probably should choose their launch car from a list of most environment friendly cars of 2000 such as Toyota Prius, Honda Insight or Honda Civic hybrid instead of launching Zipcar with Volkswagen Beetle to gain the trust of their customers on Zipcar brand. Thirdly, the case suggests that Zipcar is also targeted towards university students, who visit friends or go out of the city for few days. We feel going ahead with a 2-seater car (Volkswagen Beetle) is not as great idea as mostly students travel in groups and would need…...

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