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m4-a2.docxRunning head: GLOBAL OPERATIONS AND THEIR KEY MARKETS AND POTENTIAL COMPETITORS
GLOBAL OPERATIONS AND THEIR KEY MARKETS AND POTENTIAL COMPETITORS 10
Global Operations and Their Key Markets and Potential Competitors
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Globalization is usually conducting business in more than one country besides the original producer country. Naturally, globalization is doing business for more than country by an organization. To achieve the global market goals, there are different challenges faced by organization although there are massive benefits to the organization. Competitiveness and state laws are challenges that global operating organizations do face especially in organizations with appropriate strategies. Organizations that operates globally usually achieves massive advantages in the markets that the organization operates leading to improvement of the organizational deliverables. Zipcar is an example of an organization that its strategies for the organization is to operate globally especially in united states and united kingdom to ensure that customers are offered appropriate services.
Zipcar is an organization that provides car sharing services across different countries in the United States. The organization headquarters at Boston although there are other sub headquarters in every state that the organizations provide their services. The agency mission is to ensure that there is easiness for people living in cities to get behind the wheel of a vehicle just like it is to get a coffee or newspaper. The business of car sharing in the United States is not a new company, but Zipcar have introduced their new model of conducting the business in the United States. The business model has brought about great competition against their customers due to the flexibility of the service offered. It is exceedingly possible for customers to access car sharing services readily and quickly. The organization approach to utilizing technology for customers is of great important as a competition procedure since clients can access the cars anytime they wish against other organization competitors. The readiness of the organization services is usually central point as to why the organization is massively expanding across the United States. The majority of individuals in countries that the organization is offering services are using Zipcar sharing services making it to the most demanded car service in the United States.
The organization services are usually globally implemented since the organization services procedures are offered equally. The organization operations are often providing car sharing services to the individuals who are registered with the organization. As per the agency service, it is a recommendation for the organization to internationalize all organization functions to ensure that there is appropriate services probation by the organization. The cars that are shared by the group are fully services with fuel and gas for customers to be fully satisfied with the services. According to the agency operations, the Geographical/ country that the organization offers its services, there are usually sub-headquarters to ensure that the organization services are provided appropriately. For expansion of the body, all organization operations are practiced in the new market that the organization ventures to provide their services.
The organization services are uniquely implemented to fit in every country globally. The essential requirement for the organization to offer its services it the internet by customers since it connects clients and the organization services. The team has built a software as a service that is used by clients to request for the agency service on the model and place that they need the car service. According to the organization strategy, United States countries are the priority for the agency services to cover to ensure that all United States individuals can access the car sharing service quickly. Currently, there are different countries in united states that are enjoying the glorious services from the organization. Canada, France, Australia, Spain, and Turkey are among the countries that Zipcar offers its service to its customers.
Besides the countries, Montana and North Dakota are regions that the organization is significantly planning expand their territories to ensure that the organization services cover the United States. The cities in the areas are greatly populated, and the demand for the society is greatly requested by massive customers making it important for the organization to invest in the regions. The areas being in the United States, there is a high expectation from the country that there will be positive results achieved from the project. Billings, Missoula, and significant falls are cities found in Montana that the Zipcar organization can successfully offer their services. The areas are well populated making it appropriate for the organization services to be of great important to the organization as well as to the customers. North Dakota appropriately matches the Zipcar market through different cities with a high population. Fargo, Bismarck and Grand Forks are the cities found in North Dakoda that the organization suitably feet’s to offers it services due to the customers’ demands in the city. Montana and North Dakota are the two regions that are most appropriate for the organization expansion to ensure that the car sharing service is offered in the United States.
It is exceedingly important for every organization to consider the size of the market that they intend to expand their services. Montana is usually a region with different cities that makes it appropriate for Zipcar expansion. Billings, Missoula, Great Falls and Bozeman are cities in Montana that makes the area substantially suitable for development. The cities are highly populated with Billings being the highest populated with 104,170, Missoula with 66, 788 while great falls have 58,505 making them greatly appropriate for the organization expansion. North Dakota region has well is highly populated with different cities that are making the region suitable for development. Fargo city has a population of 115,863, Bismarck with 68896 while Grand Forks have 56057 making the cities appropriate for the organization development.
Montana and North Dakota regions with the great economy of the region's trade are well balanced with the high level of export than in port according to the 2014 budget. Whereas Montana had 6,529 export and 4,236 import rate while North Dakota had $5,289 export and 3,362 million dollars. The exchange rate of the regions it greatly appropriate and favorable for car sharing services since there is a proper economy in the areas. The regions usually have a low percentage of domestic production export since the region’s economy is greatly stable due to the business stability. The percentage in import in the regions is usually very high due to the improved economy of the regions. There are different manufacturing companies found in Montana and North Dakota making them have a great demand for employees. The workers in areas are usually paid appropriately due to the laws imposed by the government to ensure that employees are paid according to their work. In most companies, the labor is paid as per the hours employees work making appropriate since there are different benefits like motivation and overtime pay.
Montana and North Dakota are regions that are business friendly in terms of taxation and regulations. The domestic tax is appropriately regulated by the government to ensure that employees are taxed according to their job. The level of the tax rate for employees is usually lower than that of foreign companies. Foreign firms are highly taxed although it is done favorably to facilitate the economy of the regions. An organization that ventures into the regions experiences favorable taxation although it is slightly higher. The government has greatly facilitate the growth of the parts to ensure that citizens of the regions are happy favored in businesses and personal life. The government has imposed different measures to ensure that there is the continuous growth of the regions. Ownership of foreign companies in the region is usually not restricted especially if the organization complies with the state laws and regulation.
There are different requirements imposed by Montana and North Dakota to ensure that businesses are conducted appropriately in the regions. Montana laws and regulations are usually flexible to facilitate the economy of the region and ensure that companies operate accordingly. Through the laws, employees are guarded to ensure that there are no unethical practices by their employers. North Dakota state as well imposes different rules and regulations to facilitate business conducting in the region. Montana and North Dakota are regions rich in business opportunities due to their economy growth and the state legislation and regulation imposed. It is easier and faster to establish a business in the regions since there is employee’s availability and the laws in place are flexible. Zipcar expansion plan to the states will be of great importance to the organization since the goals will be achieved accordingly.
Competitor’s definition
Zipcar organization usually faces different challenges in the market among them being competition. There is steady competition in the market of sharing a car with various competitors. In the countries that zip car operates and planning to expand, there are many competitors utilizing similar technology as the organization although Zipcar has emerged to be the top ranked organization in car sharing. City car club, Getaround, and car2go are organizations have imposed significant competition to Zipcar although offering equaling services although they use different strategies. The car sharing service is significantly increasing its competition due to the massive creativity introduced for the service through utilization of information technology. Various organizations have designed various strategies to ensure that they achieve their target goal. In the United States and the United Kingdom where the organizations are based, it is easy for individuals without cars to access drive a car through car sharing services instead of leasing a tax.
Car to go is an organization that offers car sharing services across different cities in the United States and the United Kingdom. The cars shared by the organization are of high standard and quality making it impose considerable competition to Zipcar since they offer same services. The car2go organization provides its services through utilization of information technology by the Internet, a strategy that Zipcar uses. Montana and North Dakota are among the states that car2go provides its services to their customers making it competitive for Zipcar to venture into the market easily. To achieve the competitiveness in the market globally, the organization has offered their services at a fair cost per hour according to the model of the car shared. The organization services are readily available in cities parking reserved for the organization. The organization has a great advantage for competitiveness in Montana and North Dakota since it has established the market. The states customers are familiar with car2go services due their favorable prices and quality of the service they offer. The organization ensures that their clients attain the quality and model of car they desire.
Moreover, Getaround is an organization with high competition in the market of car sharing across the United States and the United Kingdom. The organization offers car sharing services along different cities imposing significant competition to Zipcar organization that provides similar services in the market. The organization utilizes different strategy in offering their customers the car sharing service. The organization provides online car sharing or friend to friend car sharing service that usually allows the driver to hire the car from private owners and proprietors to rent to be paid. It is the responsibility of the car owner to set the price they desire for the rental after when they are required to be given 60% as a commission revenue from the car rental. The strategy has a great impact on the market against Zipcar since the prices of the car are way lower. The quality of the organization service is of high standards and quality with different models of cars to satisfy the customers need. The organization offers its services in Montana and Dakota making the market substantially competitive for Zipcar to venture into the market.
City car club is an organization that imposes significant competition in the markets in the United States and United Kingdom countries on the car sharing service they offer. City car club is an organization that provides car sharing services in different countries to their customers. The organization is among the leading organization globally providing car sharing service. It is the oldest organization in the car sharing operations globally. The organization uses innovated technology to provide their services to their customers. Customers are offered the smart card to access the cars and utilize the internet for booking of the cars. The organization is substantially advantaged in their market due to their well-established market with their customers and the quality of service they offer. The organization cost for the service is usually favorable although it has higher rates than Zipcar organization. The organization provides its services and cost per hours a strategy that makes it competitive in the market. The services of the organization are of high quality and standards having different models of cars that clients can select from on hiring the car.
There are different challenges and competition factors that are faced by organizations that operate globally. The organization goals achievement in an environment full of competitors it is the role of organization management of the organization to impose different competitive strategies to ensure that they achieve the competitive factor in the market. For the Zipcar to venture into Montana and North Dakota market, it is important to design concrete competitive advantages that will ensure the project delivers positive results, according to the organization goals.
References
Great Britain. (2010). Zipcar and Streetcar: A report on the completed merger between Zipcar, Inc and Streetcar Limited. Norwich: Stationery Office.
Hope, S., Scotland., & NFO System Three. (2001). Monitoring and evaluation of the Edinburgh City Car Club. Edinburgh: Stationery Office.
Great Britain. (2005). Cars of the future: Seventeenth Report of Session 2003-04. Vol. II. S.l.: Stationery Office.
Hill, L. S. (1999). Get around in the city. Minneapolis, Minn: Carolrhoda Books.
Kowalski, D. (2014). The Integration of Driverless Vehicles in Commercial Carsharing Schemes in Germany. Hamburg: Diplomica Verlag.
