Case Presentation Chapter 10

Case Study: Zipcar

Zipcar is a car-sharing company whose mission is to enable simple and responsible urban living. This was a new notion in the U.S., even though there have been the traditional rental agencies, which meant that there was a sufficient opportunity serving this new market forte. The metropolitan, car-less inhabitants in the U.S. could get a car without the trouble of having find parking on busy streets, buy gas or even insurance. Zipcar was making a sturdy case for city people to retain from owning their own personal car, liable how many miles they actually hit the road on regular basis. The goal of this new company was to deliver consistent and useful access to on-demand transportation, perfecting other means of mobility (Zipcar.com). Their whole infrastructure is so heavily IT equipped that without this crucial element nothing would be running so efficiently and on such a huge platform. In addition, Zipcar has built a sense of community with its members through an on-line newsletter and listserv (Russel,2003). Product image, technology and day to day communiqué play a large role in Zipcar’s strategy. This car sharing company was concerned with real long-term potential as well as growth on a huge scale. They had determined objectives, but started an analytical strategy and did not overstretch itself. They started in Boston and have now expanded all around the globe to cities that are miles away. Throughout this time Zipcar was an evolution platform and their main emphasis were spent on technology, trying to equip the cars with the latest system such as the GPRS and the Cingular Data wireless. The outstanding funds were invested in working on the image of the brand and making it look good so large sums of audiences are attracted. This fresh facility confronted not much competition in the market it was established in, Boston. Near the end of 2000 Zipcar had above 400 members and 97% of their trial members became full members (Hart, 2002) along with brilliant forecasts. Zipcar’s customer procurement prolonged to increase and more significantly. These customers became perpetual members due to the company fulfilling all their everyday needs. It was projected that they would achieve gross margins of 25%(Hart, 2002). Zipcar’s internal process was extensively based on its technology. Their overall success had a lot to do with the technology they have to offer. Their expertise and technology allows Zipcar to deliver rapid, worthy, appropriate service to its customers. Due to the number of working individuals in the urban area, the company made sure they were quipped with the right amount of vehicles for every location. It is crucial for Zipcar to continue growing in their IT field since that will have a direct impact on the company’s overall performance.

Presently, it has nearly one million members, 12,000+ vehicles worldwide, 500+ cities, 500+ collages/universities campuses. In its markets comprising of several universities, such as Harvard, University of North Carolina, and George Washington University. The fact that 98% of Zipcar’s users are on college campuses and is becoming an integral part of commuter choice (Williams,2004) was a crucial element in to affiliating with these educational institutes. Connecting with schools was a great idea due to the cheap parking places and on top of that it did earn a lot through this route. The main advertisement way at Zipcar has been word of mouth. The fact is that over 40% of those who have joined Zipcar have heard about them from friends and satisfied members (“The Fast 50:,” 2002). The company’s high technology passed platform allows the drivers to navigate easily throughout the Zipcar. Zipcar is less about transactions and more about establishing a village of customers with a strong sense of community spirit (Kennedy, 2003). Sense of a community and interactions among Zipcar users, Zipsters is significant.

Lessons I’ve learned from working on this case study

This case study gave me a huge inside spectrum on how one car-sharing company can rely so much on information technology for their company. IT does not only help in creating a faster, rapid, reliable and friendly access for the drivers but also helps in monitoring the cars through their software. The Cingular Wireless system for example helps immensely in low cost transportation and meets customer demand. The innovative system has created compelling consumer and business value on a huge scale such as the exceptional 24/7 self service access including several convenient locations helps serve a huge scale of audience. I learned that IT helps in a timely customer service, where members can reserve a car in the least amount of time near them, and the remote asset management uses GPRS network to monitor cars for billing as well as security purposes. This system can remotely monitor the engine functionality (battery voltage/fuel), miles driven, and manual elements such as headlights.

What has happened since the case study was last published? (Changed/ remained the same)

Avis purchased Zipcar for $500 million ever since the case study was last published. It's been announced that Avis is taking over Zipcar for around $500 million. Some might see this as the courageous step by the corporate companies to take over. Others will regard is as a practical alliance making more resourceful control of the various fleets probable.

Though at first the company was succeeding with its one of a kind quick service and proficiency, major market competitors like Uber and Lyft have impacted the Zipcar business on a huge scale due to the even more reliable and right to your door service. Though Zipcar has their own unique style they promote and have a great advantage of their user friendly equipped vehicles, Uber and Lyft are more face to face deal which in most cases make the general public more at ease.

How can you use in your career what you have learned from the case study?

I have learned how strategic planning, IT infrastructure, efficiency, and competitive advantage have a huge role in the success of a company. I can use the IT portion most prominently in my career such as the knowledge about the Cingular Wireless System which is the largest digital voice and data network in America which has a typical average download speed of 135 kbps. Expertise are constantly finding new and innovative ways to make wireless improve, that’s why more than 500 companies choose Cingular for their wireless solutions.

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