Zipcar is a car sharing company founded in 1999. The company has operations in Boston, Washington and New York. It possesses more than 250 cars and 10,000 members. Zipcar represent a grand chance and fills a real need between taxi service and rental car service. The company focuses on dense urban residential areas more specifically where a lot of people do not own a car, as they get turned off by high parking fees, high maintenance cost, vandalism and accident prone infrastructure. It is a venture that offers convenient on demand way of transportation. Zipcar provides the experience and convenience of driving one’s car, therefore, can simply compete with extra mass transportation services, where customers’ wants cannot be simply met with other options of transport. Wants such as errands (driving to and from school) and short trips within the country are not offered by other services or might cost a lot.
Its future and growth is firmly coupled with the service familiarity and operational effectiveness as well as its capability to sustain its customer base. Zipcar offers a service to their members that vary from other car rental companies. The main difference is the user expertise. Cars are suitably located in dense inhabited areas as parking is reserved for the company. In such areas finding parking may be a significant problem. They provide a practical service that would not be probable to build, manage, scale, or maintain without technological infrastructures such as the internet. Zipcar has also developed a sense of community among its members by use of listserv and online newsletter along with their workers, almost basic marketing strategy. This has helped the company establish a strong brand image. Communication, technology and brand image, play a vital role in Zip car’s strategy.
Zipcar was once interested in building a company with a long period growth potential. The company had striving targets, but founded a realistic strategy, and it did not go far. When they established themselves in Boston, they created a basis on which the company could develop by investing much in developing its technology as an essential part of the business. The company’s technology has allowed them to provide quality, convenient and quick service to its customers. Furthermore, as demand rises, the company has made sure to have enough cars for them to keep up customer satisfaction.
The other funds were devoted in creating uniqueness and building the company’s brand. The new service faced little real competition in Boston - its target market. A business model was established for the company to expand. Taking on the car-sharing model was a challenge in the American Market place. Zipcar needed to make basic improvements to existing models as they create a market for a product that the U.S had never received. The company accumulated unnecessary expenses in their attempt to diminish risks.
Zipcar must maintain its technological leadership as it is the basis of its business. That is why the R&D department is essential to the company. Although there were some problems with the management team and the R&D department, Zipcar revised the problem after they realized that its strategy and corporate culture did not correspond to that of the department. The company’s strategy has been relatively successful. Zipcar has entered into quite a few partnerships with universities in its markets such as George Washington University, Harvard and University of North Carolina. The partnerships, especially with the universities have been successful for both parties. They provide free and cheap parking for Zipcar.
Zipcar has been the better option of partners because of its booming track record, easy to use technology and advanced web based reservation system. The company is less concerned on transactions and more concerned on establishing a village of customers with a powerful sense of community spirit.
Its future and growth is firmly coupled with the service familiarity and operational effectiveness as well as its capability to sustain its customer base. Zipcar offers a service to their members that vary from other car rental companies. The main difference is the user expertise. Cars are suitably located in dense inhabited areas as parking is reserved for the company. In such areas finding parking may be a significant problem. They provide a practical service that would not be probable to build, manage, scale, or maintain without technological infrastructures such as the internet. Zipcar has also developed a sense of community among its members by use of listserv and online newsletter along with their workers, almost basic marketing strategy. This has helped the company establish a strong brand image. Communication, technology and brand image, play a vital role in Zip car’s strategy.
Zipcar was once interested in building a company with a long period growth potential. The company had striving targets, but founded a realistic strategy, and it did not go far. When they established themselves in Boston, they created a basis on which the company could develop by investing much in developing its technology as an essential part of the business. The company’s technology has allowed them to provide quality, convenient and quick service to its customers. Furthermore, as demand rises, the company has made sure to have enough cars for them to keep up customer satisfaction.
The other funds were devoted in creating uniqueness and building the company’s brand. The new service faced little real competition in Boston - its target market. A business model was established for the company to expand. Taking on the car-sharing model was a challenge in the American Market place. Zipcar needed to make basic improvements to existing models as they create a market for a product that the U.S had never received. The company accumulated unnecessary expenses in their attempt to diminish risks.
Zipcar must maintain its technological leadership as it is the basis of its business. That is why the R&D department is essential to the company. Although there were some problems with the management team and the R&D department, Zipcar revised the problem after they realized that its strategy and corporate culture did not correspond to that of the department. The company’s strategy has been relatively successful. Zipcar has entered into quite a few partnerships with universities in its markets such as George Washington University, Harvard and University of North Carolina. The partnerships, especially with the universities have been successful for both parties. They provide free and cheap parking for Zipcar.
Zipcar has been the better option of partners because of its booming track record, easy to use technology and advanced web based reservation system. The company is less concerned on transactions and more concerned on establishing a village of customers with a powerful sense of community spirit.
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