Zipcar is a business that provides car-sharing programs for people in major, urban cities like Tokyo, New York and London. Zipcar allows people to borrow cars for designated times as needed. In some cases it may be borrowed for 30 minutes, some cases can be several days. Young professionals are eagerly participating in these programs because it allows the convienience allowed in owning a car without the long term cost. Car-sharing businesses have seen a dramatic increase in the last two years with expected growth for the next fifteen years. The idea of car-sharing is viewed as a more environmentally friendly approach to living because it reduces the number of cars emitting carbon into the city. Automakers like BMW and Daimler have taken great strides to implement car-sharing services as a method for meeting car needs for future populations of people. BMW has launched car-sharing programs in foreign markets with much success. They have also experimented with late feel flexibility and one-way travel options for the professional on the go. It appears with the growing interest in car-sharing programs companies will continue to explore the feasibility of such programs. At this time, the programs do not have enough experience to determine the profitability. The demand has proven it is worthy to continue to explore because it is an in-demand service.
Chapter Case 4 Questions-Daimler/BMW
1. Discuss environmental factors related to population that are changing the way certain people approach car buying and are thus creating new market segments.
Young people are aware of the negative environmental factors impacting urban areas. It is as clears as the dust and smog on clothing when they venture into the streets of any major city. The fumes from trucks and cars sticks to the fibers of clothing as a constant reminder of the potential damage it is doing to their lungs. Young people are often looking to become