Good Case Study On Zipcar
Type of paper: Case Study
Topic: Company, Market, Business, Services, Vehicles, People, United States, Customers
Zipcar is a viable car investment business that represents a wide scope of investment in the car market. It uses of a business model that is ideal for the market in Europe and America. It has made technological advancements in its online reservation systems. The business model makes use of a wireless control system. The system monitors the fuel level to the cars and the security level. The management team of the company makes use of rapid growth strategy that can capture the market. The business model is best suited for areas that are densely populated, and Wipcar primary target is the urban population. The revenue growth for the company is high since its inception in the 1999. It competes profitably in the global market. The business model Wipcar uses is supported by appropriate technology making is a unique business.
Zipcar is a global car company that specializes in the renting out of cars on an hour basis. Founded a decade back, the main concept of its establishment is the usage vehicles to a standard destination. It is a very simple strategy they use in the market but in terms of large scale it is very complex. The firm management works to uphold the growth of the syndicate and focuses on footprints. Their main primary target customers are the business people and universities workforce. They are mainly people who travel together. The company positions itself in the global market as one of low-cost conveyance by shared service concept.
The company founder is Robin Chase who formed it to bring European Trend of car sharing to the United States of America. The growth is attributed to using an inorganic approach of the market in past and present-day. It has acquired other companies that have aided its growth. It has made use of latest technology in the transport industry like RFID transponders that bring efficiency in the sharing business. The technology has brought the cost of service low and raised the service quality that is required for the cars hence an enhanced user experience for the cars. It chooses its model from various vehicle models that include hybrid models that are S U V and trucks (Great Britain, 2010).
Zipcar Company makes use of different marketing strategies that have learned in class. The market segmentation focuses on the geographical segmentation of the United States of America and Europe. It is divided into the metro, Sub Urban and Urban areas. Demographic segmentation is also used based on the age of people who looked forwards to hire the services. People of similar age are allowed to rent the car together. People who are of the level of the education can blend well together compared to people of different level of education and income.
Promotion of their services is another marketing strategy the company makes use. It targets tech-savvy people who they are offered opportunity to make bookings using their phone. The promotional feature in the applications encourages people to try it and hence to target a new market that has not been explored previously by the company.
In the service industry, the company makes use of questionnaires from the people who have used their services. They make follow up with customers and keeping informing them of the new products they produce and changes they make. In doing so, they retain customers who have used the company.
The future of the firm is bright together with its products. Due to their excellent marketing features for the company it targets to reach everyone in the United States and Europe. The company shall double its size in the next twenty years from now. The consumer preferences of the business keep on changing on a daily basis. The company has invested in a strategic team that analyses the consumer preferences and keeps on changing. The tendencies in the firm keep on changing depending on the change of consumer propensities in a market. The company’s focus is on the future subdivision. It will be segmented into small Suburban sections that will focus to reach everyone around. The competition from the firm will not be very high since it has grabbed the market well. They are few consumer complaints, and their prices are fair. It will be hard for a competitor to enter the market since it satisfies all consumer needs. The company needs to work on other markets outside America and Europe. It will expand and be a global market and its market share, and they will remain successful. Management is significant for remaining profitable, and they should employ strategic management skills that will make it continue being on top of the market (Chase, Roberts and Harvard Business School Publishing Corporation, 2005).
The concept learned in the study case for the service industry is the market approach it makes use of in wooing its customers in the market. Several market approaches are used that make it penetrate the market in all angles. The market concepts understand that people have a low budget, and needs. It focuses on satisfying market needs hence remaining profitable in the market.
They are several lessons that I drive from the case study. They are imperative in my career since they provide experience and knowledge on how a service industry is run. From the history of how the syndicate was formed it helps one to know on how to create a similar company. In my career, if I will be employed by a service industry, I will draw a lot from the company; from marketing to management of the products.
The challenges the firm faces makes one be able to handle problems that occur in a similar company. It brings insight on how to handle problems in the company. The marketing concept helps provide firsthand involvement on practice on how to put on them in market. The branding conception and plans for the company make one can successful execute them in a similar service industry (Champy, 2010).
Chase, R., Roberts, M., Zipcar, F., Harvard University., & Harvard Business School Publishing Corporation. (2005). Zipcar: Discussion with an MBA class, 2/8/03. Boston, MA: Harvard Business School Publishing.
Champy, J., & Champy, J. (2010). Compete by meeting unmet needs: How Zipcar rethought the car rental business. Upper Saddle River, N.J: Pearson Education Pub. as FTPress Delivers.
Great Britain. (2010). Zipcar and Streetcar: A report on the completed merger between Zipcar, Inc and Streetcar Limited. Norwich: Stationery Office.