Preview

A Strategic Analysis of Zipcar

Powerful Essays
Open Document
Open Document
5844 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
A Strategic Analysis of Zipcar
| Report to the Management:A Strategic Analysis of Zipcar | | | Student ID Number: 0898244, 0889876 | 11/30/2011 |

Table of Contents 1.0) Abstract………………………………………………………………………...2 2.0) Introduction…………………………………………………………………….3 3.0) PESTEL Analysis…………………………………..……………..…………...4 4.0) Five Forces………...……………………………..…………….…..…………..6 5.0) Three Generic Strategies.……………………………..……………..…………8 6.0) Strategy Direction……………………………………………………...……..10 7.0) Value Chain Analysis…………………………………..……………………..11 8.0) SWOT Analysis…...….…………………………..……………………...…....13 9.0) Conclusion…………..………………………………………………………...15 10.0) Recommendations….…………………………………………………………15 11.0) Implementation Issues………………………………………………………...16 12.0) References…………………………………………………………………….17

1.0) Abstract
In this report we are going to reflect upon the business strategy of an American car sharing company called Zipcar. Business strategy determines the long term success of a company, the way they try to distinguish themselves in the market and how they achieve a competitive advantage. Zipcar is an innovator in the field of car sharing, but they still face fierce competition from car rental agencies and car ownership. This report looks to analyze their strategy in order to help them improve it. In examining Zipcar’s business strategy analytical tools such as PESTEL, SWOT and value chain analysis will be taken into account. This management report illustrates the company’s strongest and weakest areas that determine their potential growth and development. Recommendations will be made along with implementation issues which are important factors that will be discussed in this report in relation to the company’s business strategy. The company’s position as a competitor in the market will also be looked at, as well as how Zipcar attempts to present itself in it. Another important question to answer is what kind of challenges the company faces when trying to



References: Ansoff’s Product/Market Mix. http://tutor2u.net/business/strategy/ansoff_matrix.htm (accessed 1 October 2011). Car Sharing World. 2011. How Zipcars are Revolutionizing Car Sharing. http://carsharingworld.com/2011/02/how-zipcars-are-revolutionising-car-sharing/ (accessed 29 October 2011). Chase, Robin. 2010. Does Everyone in America own a car? http://www.america.gov/st/peopleplaceenglish/2010/March/20100316154329fsyelkaew0.8109356.html (accessed 1 October 2011). Clifford, Stephanie. 2008. How fast can this thing go anyway? http://www.inc.com/magazine/20080301/how-fast-can-this-thing-go- anyway_pagen_2.html (accessed 2 November 2011). CNN Money. Zipcar’s $1 Billion Ambitions. http://money.cnn.com/video/technology/2009/08/26/f_tt_zipcar_ceo_griffith.fortune/ (accessed 2 November 2011). Hall, Jeremiah. 2008. History of the Enviornmental Movement. http://www.mtmultipleuse.org/endangered/esahistory.htm (accessed 15 November 2011) Hybrid Cars Investopedia. Economies of Scale. http://www.investopedia.com/terms/e/economiesofscale.asp#axzz1djB31MmF (accessed 15 November 2011) Johnson, Gerry, Whittington, Richard and Schole, Kevin Langer, Garry. 2005. Poll: Traffic in the United State http://abcnews.go.com/Technology/Traffic/story?id=485098&page=1#.TsBAkvRTa0s (accessed 15 November 2011) Lieber, Ron Martell, Luke. 1994. The Green Movement. http://www.sussex.ac.uk/Users/ssfa2/greenmovement.pdf (accessed 15 November 2011) Miller-Wilson, Kate Olson, Elizabeth. 2010. A Shift from Company Cars. http://www.nytimes.com/2010/11/23/business/23share.html (accessed 17 October 2011)  Oxford University Press Quick MBA. Competitive Advantage. http://www.quickmba.com/strategy/competitive-advantage/(accessed 2 November 2011). Rodrigue, Dr. Jean-Paul. Urban Transport Problems. http://people.hofstra.edu/geotrans/eng/ch6en/conc6en/ch6c4en.html (accessed 1 November 2011). Salmon, Felix. 2007. Market Mergers. http://www.portfolio.com/views/blogs/market-movers/2007/10/31/behind-the-zipcar- flexcar-merger/ (accessed 17 October 2011). The Economist. 2010. The Business of Sharing. http://www.economist.com/node/17249322?story_id=17249322&fsrc=rss (accessed 3 November 2011) US Department of Transportation Wikipedia. Transportation in the United States. http://en.wikipedia.org/wiki/Transportation_in_the_United_States (accessed 10 October 2011) Zipcar

You May Also Find These Documents Helpful

  • Good Essays

    Kudler Market Structure

    • 1203 Words
    • 5 Pages

    By use of the intranet website of the company there was tools and resources available to make an accurate picture of the company. Thus allow identification of the company’s strengths and weaknesses. The strengths of the company allows the company to sustain itself in the marketplace. However the company’s weaknesses imposes threats to the company to remain a leader in its current region. The company is an oligopoly market structure, because there are only a handful of similar stores that offer same products and services in its area. If the company imposes the recommendations, the company will be able to take a substantial lead in the market, and also began an adventure to become nationally known and become a profitable franchised…

    • 1203 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Companies always strive to create value for their customers. In the Canadian trucking industry, over $30 billion in revenues were generated by for-hire companies such as Eastern Talon Transport and to attain a sizeable share of these revenues, it must also strive to create value for it’s customers. In 2004, value is more important than ever. Trade activity between Canada and the United States declined and has resulted in a 1% decline in revenues. With rising costs of fuel and insurance, profitability within the industry begins to slide. Both of these factors have caused Eastern Talon Transport to consider options to reduce costs.…

    • 1963 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Mgt 415 Exam 1 Study Guide

    • 9681 Words
    • 39 Pages

    Format: 55 multiple choice questions and 2 essay questions. Please be able to define the following concepts as well as apply to various situations and scenarios. Also, there were several course concepts we spent more time discussing and engaged in exercises. Please make sure you really understand and can discuss and apply those concepts. Chapter 1 Strategy definition: A company’s strategy consists of the competitive moves and business approaches that managers are employing to compete successfully, improve performance, and grow the business. Strategy is about competing differently from rivals-doing what competitors don’t or, even better, doing what they can’t do. Every strategy needs a distinctive element that attracts customers and produces a competitive edge. Determining winning strategy- the three main questions: Fit Test: How well does the strategy fit the company’s situation? A winning strategy has to be well matched to the industry and competitive conditions, a company’s best market opportunities, and other pertinent aspects of the business environment in which the company operates. Competitive Advantage Test: Can the strategy help the company achieve a sustainable competitive advantage? Strategies that fail to achieve a durable competitive advantage over rivals are unlikely to produce superior performance for more than a brief period of time. Performance Test: Is the strategy producing good company performance? The mark of a winning strategy is strong company performance. Two kinds of performance indicators tell the most about the caliber of a company’s strategy: (1) profitability and financial strength and (2) competitive strength and market standing. Business Model: Sets forth the economic logic for making money in a business, given the company’s strategy. It describes two critical elements: (1) the customer value proposition and (2) the profit formula. The customer value proposition lays out how a company will satisfy the…

    • 9681 Words
    • 39 Pages
    Powerful Essays
  • Better Essays

    The research will describe which competitive advantages Riordan has in common with McDonald’s and Burger King. This study will estimate, which competitive strategies Riordan could use to improve innovation and sustainability of business operations both in the United States and in the global market. Research will explain why those competitive strategies were chosen and estimate how they may affect sustainability of long-term organizational performance. The examination will also explain how the global market would affect the business strategy of Riordan.…

    • 1106 Words
    • 5 Pages
    Better Essays
  • Better Essays

    A successful strategic plan must be based on the company 's mission, vision, and values. The purpose of this paper is to define a selected business, products, services, and customers by creating a mission statement. In addition, this paper contains a vision for the organization that demonstrate the expected future for the business, and it will define the company values considering important topics such as culture, social responsibility, and ethics. It will also analyze how the vision, mission, and values guide the company 's strategic direction. Finally, it will evaluate how the company address customers needs and how competitive advantage will be achieved.…

    • 1079 Words
    • 5 Pages
    Better Essays
  • Best Essays

    Huffman Trucking

    • 4367 Words
    • 18 Pages

    Nowadays, companies should decide to always manifest effective customer-centricity philosophy, building a strong internal marketing culture and enhancing the market’s influence on other entities throughout their organization. This will set the stage to inform them of how and when the time is right to make the necessary changes for the survival and growth of the business. Huffman Trucking is a trucking company in the services industry, which has been experiencing diminishing growth over the past years. The organization needs to improve its overall position in the industry. Huffman’s CEO, Phil Huffman, has determined that a customer-centric strategy is what his organization needs to improve growth and achieve the top position within the trucking industry. In order to ensure Phil’s strategy is successful a proper evaluation must be done to determine the organizations’ current marketing strategy and in addition determine the sustainability of the proposed strategy and the overall benefit to the organization.…

    • 4367 Words
    • 18 Pages
    Best Essays
  • Powerful Essays

    Groupon is a deal-of-the-day website that is localized to major geographic markets worldwide. Launched in November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto. Groupon has over 50 million subscribers across 300 cities in more than 40 countries. The idea for Groupon was created by Andrew Mason who is currently the company’s CEO.…

    • 3357 Words
    • 14 Pages
    Powerful Essays
  • Best Essays

    Strategic Analysis Of ALDI

    • 3647 Words
    • 12 Pages

    Albrecht Discount Inc., globally known as Aldi, is a German based family owned global discount chain of supermarkets. Aldi constitutes of two independent groups, that are Aldi Nord (North) and Aldi Sud (South) legally and economically independent but family related (Aldi Sud Business, 2013). It is the market leader in the industry of international grocery retailing and owns and operates chain of discount grocery stores in Europe, Australia and United States. It’s stores retail and supply general merchandise and food including meat products, fresh meat, frozen and refrigerated foods, sweets and snacks, dairy and bakery products, beverages and pantry items in addition to home care and personal care products (Report Linker, 2013). In the present Aldi Inc.’s strategic analysis is carried out to identify and evaluate its strategies against its business environment to critically analyze whether the strategies pursued by Aldi are effective in maintaining its market leader position or not. In doing so environmental analysis of international grocery retailing industry is carried out to bring about the opportunities and threats the industry is facing and SWOT analysis is carried out to shed light on Aldi’s strengths and weaknesses and opportunities and threats the industry is facing on the whole. Aldi’s strategies are…

    • 3647 Words
    • 12 Pages
    Best Essays
  • Powerful Essays

    This paper will analyze Federal Express’s value creation frontier, and determine which of the four building blocks of competitive advantage the company needs in order to continue their above average profitability. It will also explore the main aspect of product differentiations and capacity control of the company to maintain an edge on their rivals. Furthermore, for this assignment I will attempt examine the efficiency of FedEx’s current business model and recommend a new business level strategy that will give Federal Express a competitive advantage over it rivals. In addition, this paper will also examine the manner in which overall, global competition may influence my recommended business strategy and I will suggest a significant way that Federal Express can confront its global competition.…

    • 2604 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Mms Renta a Car

    • 4630 Words
    • 19 Pages

    MMS Rent-a-Car, based in Atlanta, Georgia, has outlets at major airports and cities throughout North America. Founded by CEO Elena Markum several years ago, it has seen fast growth over the past few years, mainly because it offers quality service, fast, at convenient locations. MMS is highly competitive, able to offer cars at slightly lower rates than its competitors because most of its airport facilities are located near but not at the airport. A keen user of information systems, MMS tracks competitors’ prices, stored in a large data warehouse, through its Web-based enterprise information system portal, CLAUDIA (Come Learn About statUs for Deals and Information on Autos). CLAUDIA also tracks sales, fleet status, other internal status information, and external information about the economy and its relevant components. CLAUDIA has been a great success in keeping MMS competitive.…

    • 4630 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Cruise

    • 2355 Words
    • 10 Pages

    U.S. Department of Transportation Maritime Administration North American Cruise Statistical Snapshot, 2011 Office of Policy and Plans For additional information about the Office of Policy and Plans and its products and services, contact: Information Service Phone: 202-366-2278 Fax: 202-366-7403 Email:…

    • 2355 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Introduction. In this assignment I am going to explain the following concepts, generic strategies, alternative directions and alternative methods. Indeed, I would like to support these concepts by referring my work to the automobile sector (as a continuing line provided with the Morgan´s example in class). I am going to use the example of General Motors and Ford, they are well known and also provide us a long struggling and interesting history. The first part of my assignment gives a theoretical view of different concepts (using several examples) that are used in my assignment and, of course, in the real management world. Afterwards, I am going to explain different aspects of the US automobile industry. Finally, I would like to give some advises to each company. Theoretical assumptions. Once I have explained the structure of my assignment, I would like to emphasise the fact that the Strategic Choice is the core of strategy management in a company, because is concerned with decisions about its future and the way that it is going to respond to the pressures and influences from its rivals. Each company has to know how to develop its own strategy; therefore, it has to answer the following questions: • What basis? • Which direction? • How? As an exhibit that we can see in the Johnson and Scholes book, we can explain Development Strategies as: Bases of choice − Corporate purpose and aspirations − SBU generic competitive strategies − The role of the corporate parent Alternative directions − Protect and build − Market penetration − Product development − Market development − Diversification: related or unrelated Alternative methods − Internal development − Acquisition − Joint development / alliances…

    • 2095 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    This case study looks at how new business models can create vast improvements in competitiveness. However, the models must be suited to the business environment at the time and will have a ‘shelf-life’ as the business environment changes. The case study looks at one on the world’s most successful adopters of a new business model that transformed the airfreight and package delivery sectors worldwide. But the advent of the internet in the mid-1990s meant that the FedEx business model had to change or the company would decline. This is also the story of how it rose to that challenge.…

    • 1959 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Automobiles have transformed our planet. There are positive and negative outcomes in all new technological innovations, new to the world products, and within product line extensions. Automobiles have a severe impact on society’s daily needs of transportation, their profit margin capabilities for corporations, and seemingly cover our globe. Considering these standards, innovators tend to shy away from implementing modernism of transportation. There are simple improvements that only society has the power to change. With the horrifying reality of ecological damage done to our planet daily, the dependence the U.S. has on foreign oil, and the currently failing economy, how transportation is fueled must be sincerely considered. [Thesis statement]…

    • 1917 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Communication Studies Ia

    • 3047 Words
    • 13 Pages

    According to CIA World Factbook, Trinidad and Tobago has around 151 one cars per 100 person. With a population of approximately 1,262,566 people the total number of cars is about 1,902,172. Despite this large number of people and ever expanding car industry we have a negligible amount of green vehicles. This refers to any road vehicle that does not use petrol but uses alternative fuel sources for energy. This information led me to the theme of this portfolio, “Green vehicles in Trinidad and Tobago.”…

    • 3047 Words
    • 13 Pages
    Powerful Essays