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A Strategic Analysis of Zipcar

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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

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