Zipcar Case Analysis
1. What are the challenges facing Zipcar? Two prominent challenges that Zipcar faces currently are:
Internal organizational challenges due to Merger with Avis – A merger between 2 companies of different size, values and culture always possess some challenges along with benefits. 3 potential challenges due to this merger could be - creating cultural synergies between a large conglomerate with established business practices with a relatively small entrepreneurial organization with innovative ways of doing things, impact of change in pecking order on organization strategy & executional challenges faced by being part of a large conglomerate.
Competition by large rental co.’s and niche car sharing co.’s– Zipcar faces intense competition from car sharing services introduced by large established rental car behemoths like Hertz, Enterprise, U-Haul etc. While Avis can provide infrastructure support to some extent in terms of expansion of car fleet, parking spots etc. Zipcar will have to make product/service enhancements to counter features like No Registration fees, one way rentals, Reward Points etc. Zipcar also faces competition from peer to peer services like Relayrides, Getaround etc. and service like car2go, which offer innovative, convenient and cost effective solution to meet car rental needs of consumers. These companies might pose a big challenge at a regional level
2. What are 3 possible ways to segment market - Three possible ways to segment the market are
• Area/location-As more and more people are shifting to urban areas where owning a car is not as attractive proposition as in suburbs/rural areas, Area-densely populated city areas, airports etc.is way to segment.
• Age-Car ownership typically varies with age. Hence age- College goers, singles (25+) etc. is an important way to segment.
• Attitude– Sharing a car requires a mindset change hence segment by attitude is important
3. Develop a marketing strategy for Zipcar
Customer- Zipcar should
Internal organizational challenges due to Merger with Avis – A merger between 2 companies of different size, values and culture always possess some challenges along with benefits. 3 potential challenges due to this merger could be - creating cultural synergies between a large conglomerate with established business practices with a relatively small entrepreneurial organization with innovative ways of doing things, impact of change in pecking order on organization strategy & executional challenges faced by being part of a large conglomerate.
Competition by large rental co.’s and niche car sharing co.’s– Zipcar faces intense competition from car sharing services introduced by large established rental car behemoths like Hertz, Enterprise, U-Haul etc. While Avis can provide infrastructure support to some extent in terms of expansion of car fleet, parking spots etc. Zipcar will have to make product/service enhancements to counter features like No Registration fees, one way rentals, Reward Points etc. Zipcar also faces competition from peer to peer services like Relayrides, Getaround etc. and service like car2go, which offer innovative, convenient and cost effective solution to meet car rental needs of consumers. These companies might pose a big challenge at a regional level
2. What are 3 possible ways to segment market - Three possible ways to segment the market are
• Area/location-As more and more people are shifting to urban areas where owning a car is not as attractive proposition as in suburbs/rural areas, Area-densely populated city areas, airports etc.is way to segment.
• Age-Car ownership typically varies with age. Hence age- College goers, singles (25+) etc. is an important way to segment.
• Attitude– Sharing a car requires a mindset change hence segment by attitude is important
3. Develop a marketing strategy for Zipcar
Customer- Zipcar should