Case Presentation Chapter 10
wheels when you want them.
By: Sania Bhatti
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Our mission: to enable simple and responsible urban living
MISSION-DRIVEN
We started with a bold mission: to change the way people think about driving in cities around the world. To allow city dwellers to live car-free, while having the freedom to drive when they need to.
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Zipcar Quick Facts
A ZIPCAR SNAPSHOT:
Nearly one million members
12,000+ vehicles worldwide
500+ cities and towns
500+ college and university campuses
Every 6 seconds somewhere, someone in the world reserves a Zipcar
Founded by MIT’s Robin Chase and Harvard’s Antje Danielson in Cambridge, MA in 2000
THE ZIPCAR IMPACT:
Up to 13 vehicles off the road per Zipcar
$600 average monthly savings compared to car owners
- Members have 24/7 access to Zipcars worldwide (gas & insurance included)
Zipcar has the largest vehicle variety in car sharing: Compacts, sedans, SUVs, EVs, convertibles, pickups, moving vans, and luxury cars.
Founded by MIT’s Robin Chase and Harvard’s Antje Danielson in Cambridge, MA in 2000
Every 6 seconds someone, somewhere in the world reserves a Zipcar
A Zipcar snapshot:
Nearly 1 million members
500 cities and towns
31 major metropolitan areas
50 airports
500 college and university campuses
275k businesses and government agencies
12,000 vehicles worldwide
Over 50 vehicle makes and models
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Summary
A strategically located network of vehicles creates a new, low-cost transportation service
All cars are outfitted with patented wireless technology
Its proprietary IT platform carries carries information flowing between customers, vehicles and the company.
This business model provides a unique advantage over traditional car rentals (Enterprise, Alamo, Dollar-rent)
24/7 service unlike traditional car rental facilities, gas + insurance included
Relies on the Cingular Data Network to meet customer demand
Immense usage of social networking technology to advertise through users (Zipsters)
How Zipcar works
Attain Competitive Advantage
Have extended period relations and agreements with contractors, sellers as well as business corporations
Operating on their great amount of assets to buy out smaller companies, parallel to their business model
Sustain their competitive advantage with the usage of latest/enhanced technology
Attempt on moving into a new market with better and high level cars such as limos, RVs, cars, and buses
Synergy
The synergy between the business strategy and IT is a critical resource for this business.
Their Cingular Wireless helps answer a unique consumer need for network coverage/reliability.
IT is expendable to many branches/ technologies to progress, renovate and run the company with progression
Their business strategy is helped though through the usage of IT such as for timely customer service, remote asset management, network, applications and service
Network effects
“Zipsters”: Usage of social networking through twitter by these network users that are part of the strategy
They promote their experience with the company and their “Ziptrips” through tweets to spread the word
Use web analytics to track endpoint success
Competition
Competitors: Taxis, Enterprise, TURO, Alamo, Uber, Lyft, Car2go
public transportation
American lifestyle of driving a personal car
Solution:
64% of respondents would use Zipcar if there were more locations
Promotional activities
Variety in availability through increase of cars on facility
Conclusion
Zipcar’s goal was to provide reliable and convenient access to on-demand transportation, complementing other means of mobility through heavy usage of IT infrastructure
Since the case study released-
- Avis bought Zipcar for $500 million,
Uber + Lyft became major opponents
They could improve their company’s overall capability through more human interaction since its at bare minimum at the moment
Learned about the intensive IT infrastructure these companies have and how day to day improvement Is crucial for their success.
QUESTIONS?
REFERENCES
References:
My referencing style is from www.Flexcar.com
Grimes, Brad. (2004, February 17). “Leave the Driving To Zipcar.” PC Magazine. Retrieved March 20, 2004 from PC Magazine’s Homepage on the World Wide
My referencing style is from http://www.umuc.edu/library
“Leading Business Organization, Springboard Enterprises, Reports Surge in Activity for Emerging Companies.” (2003, November 19). Business Wire. Retrieved March 19, 2004 from MdUSA database
“The Fast 50: Trendsetters" (Zipcar #31). (2002, March). Fast Company. Retrieved March 22, 2004 from the Fast Company Homepage on the World Wide Web: http://www.fastcompany.com/fast50_02/people/trendsetters/31.html Williams, Nakisha.
My referencing style is from Journal of Information Technology
Rovenpor J.L. (2011) Zipcar Incorporated: Do We Really Need to Own Our Automobiles?. In: von Kimakowitz E., Pirson M., Spitzeck H., Dierksmeier C., Amann W. (eds) Humanistic Management in Practice. Humanism in Business Series. Palgrave Macmillan, London
My reference style is from Journal of Consumer Research
Journal of Consumer Research, Volume 39, Issue 4, 1 December 2012, Pages 881–898, https://doi.org/10.1086/666376
My reference style is from www. Zipcar.com
“Own the Trip, Not the Car™.” Car Sharing: An Alternative to Car Rental with Zipcar, www.zipcar.com/.