Zipcar Individual Case Brief

Zip auto Company is affected by several oecumenical surround factors including the following Sociocultural There is very well developed public transportation system available in the urban atomic number 18as and citizenry can easily get the mobility through public transportation. Easy approach path to the public transportation affects Zipcars chore to minimize its revenues. Economic cod to the high gas prices, it is not easy for the companies like Zipcar to compete in the marketplace entirely the Zipcar can come up with hybrid cars to surpass this threat.Technological Zipcar has now its own application to select the cars and this application makes the surgical process easy for the customers in selecting the right vehicle. Technology is helping the association to fail facilitate its customers. Zipcar confederation is sop upive for the virgin entrants and the business has enough authority to generate above average profits. Following are the most in-chief(postnominal) of five forces affecting the Zipcar business menace of new entrants Threat of new entrants is high for this conjunction. There are many other companies like attempt car rentals can alike offer car sharing assistances.Threat of accompaniment products Zipacar is a unique business model and the threat of substitute product is low because it needs a long business apparatus to establish business model similar to the Zipcar. Following are the both main companies that are in the competition with the Zipcar. Enterprise rent a car Enterprise rent a car is a big car rental business and if they start the car sharing service in the future so it will become more emulous for the Zipcar to generate above average revenue in the market. Hertz car rental service Hertz car rental can be another direct competing firm to the Zipcar.They are second largest in ground of fleet after Enterprise. Most in-chief(postnominal) of the value chain factors are discussed in the following paragraph. Market ing and sales Are very important factors that are important for the society. This business needs some proper selling system to create awareness in the minds of the target audience. This factor is superlative among the both competitors. Technological development It is important for the Zipcar is a company and the company can use new technology including smart phone applications to attract new customers. This factor is superior among both competitors.Zipcars net profit bank for 2012 was 5. 26 million as compare to Hertz profit edge of 2. 69 million. The company has a social responsibility of keeping the environment clean and Zipcar is adding environment friendly cars to its fleet to keep the environment clean. Zipcar company is aligned with the market trend and this is the major strength that is attracting more opportunities and passing threats to the company. Due to the seasonal demand for the vehicles Zipcar experiences low return in trustworthy months that limits the opport unities and enhances the threats.Zipcar is offering the service that is valuable and rare but it is not dearly-won to imitate for big competitors and there are also substitutes available in the market with little modification in terms and conditions. The competitive good for Zipcar is temporary. Zipcars business level outline is highly focused on differentiation and offering environment friendly products. Corporate level of the strategy is not that developed yet and the company is having slow growth receivable to the income only from one sector. The company had a merger with Flexcar in 2009 and they also made alliance with Avancar in Spain due to its cooperative strategy.Company has not given a good international strategy even though they are also operative in several other nations but they still need better business model to work internationally. Overall, the company has to work on the corporate level to compete both locally and internationally. Company is pursuing its busine ss level strategy to win the market share. Firm needs to recruit more staff because there is a strong lack of customer service in their current business model and today, the companies with strong customer service are the one who has a big market share in the businesses.Most important 7s factors are following System Company has uniform working criteria everywhere they work. Staff Company works hard to boost the pauperization of their employees. Skills By hiring the right people and continuous training procedure the company is having edge over other competitors. Q1 How the company takes care of its stakeholders as they are major part of the process to generate above average returns? Q2 What strategy does the company have to response to the hyper-competition?