Market: The revolutionary concept certainly provides an alternative to public transport. Furthermore the car sharing concept is really useful for the public in a overcrowded city with limited parking & expensive parking fees. This is clearly not an untouched segment because there are other 2 competitors operating. •Customer: The target customers are educated and internet savvy urban dwelling people. •User Benefits: Non car owners will have the service at their disposal when ever they require thru reserving it on the web. •Value added: All billings are done online and is hassle free. Users have access to utilization data. System is fully automated with wireless data sending and receiving. •Product life: Product will be long life as annual market growth is expected to be 30%. 1.1Market Structure
As I mentioned earlier, the market is not completely untapped, but the other competitors are concentrating in the metropolitan area. The whole US market is still available to be ventured into. 1.2Market Size
The potential market size is huge, as forecasted, in 14 metropolitan cities it would be $200 million. 1.3Growth Rate
The annual growth rate is expected to be 30 %.
It’s at its fullest capacity, as only Portland & Seattle have similar services. 1.4Market share attainable (Year 5)
It is capable of capturing 13.8% of the market share. It is not a market leader, but with continuous development & effort has the potential to be a market leader.
ZipCar is a low cost provider. Marketing cost is low. Exhibit 3 shows the yearly costs increases slightly. However the marginal cost in percentage is at a declining rate.
2.1Time to break even / positive cash flow
ZipCar will break even in year 2 of...