Zipcar Individual Case Brief

Zip rail railroad simple machine go with is affected by some(prenominal) general environment factors including the following Sociocultural There is in truth well developed common transportation system available in the urban atomic number 18as and people can easily get the mobility through public transportation. Easy access to the public transportation affects Zipcars craft to calumniate its revenues. Economic Due to the high gas prices, it is not easy for the companies standardized Zipcar to deal in the market unless the Zipcar can come up with hybrid cars to overcome this threat.Technological Zipcar has now its own application to take on the cars and this application makes the process easy for the customers in selecting the right vehicle. Technology is aid the company to better facilitate its customers. Zipcar company is attractive for the unfermented entrants and the business has enough potential to generate higher up average profits. sp be-time activity are the most important of five forces affecting the Zipcar business Threat of new entrants Threat of new entrants is high for this company. There are many early(a) companies like effort car term of a contracts can also offer car sharing services.Threat of substitute products Zipacar is a unique business baffle and the threat of substitute product is low because it needs a bighearted business setup to establish business pattern similar to the Zipcar. Following are the two 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 give-up the ghost more competitive 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 jiffy largest in hurt of fleet after Enterprise. approximately important of the treasure chain factors are discussed in t he following paragraph. Marketing and sales ar very important factors that are important for the company. This business needs approximately proper marketing scheme to create awareness in the minds of the goat audience. This factor is superior among the both competitors. Technological development It is important for the Zipcar is a company and the company can use new technology including chicness phone applications to attract new customers. This factor is superior among both competitors.Zipcars pass profit margin for 2012 was 5. 26 million as compare to Hertz profit margin of 2. 69 million. The company has a social function of occuring 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 specialty that is attracting more opportunities and limiting threats to the company. Due to the seasonal demand for the vehicles Zipcar experiences low accrue in certain months that limits the opportunities and enhances the threats.Zipcar is offering the service that is valuable and rare but it is not costly to imitate for big competitors and there are also substitutes available in the market with little modification in terms and conditions. The competitive advantage for Zipcar is temporary. Zipcars business level strategy is exceedingly focused on differentiation and offering environment friendly products. incorporated level of the strategy is not that developed yet and the company is having windy growth due to the income only from one sector. The company had a optical fusion with Flexcar in 2009 and they also made alliance with Avancar in Spain due to its accommodative strategy.Company has not given a good international strategy even though they are also working 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 a nd internationally. Company is pursuing its business level strategy to win the market share. Firm needs to recruit more cater 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 leaden to boost the motivation of their employees. Skills By hiring the right people and continuous tuition procedure the company is having edge over other competitors. Q1 How the company takes make out 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?