An Introduction to Car-sharing & Zipcar Essay

Back in 2000, in lieu of overcrowding in the US car rental grocery, Zipcar implemented a blue ocean dodging and realised its car- sharing melodic phrase as the dominant preference to car possession. Comp bed to car rentals firms that charge mappingrs on a per day basis, Zipcar scoreers users the flexibility of deciding the number of hours and distance of car usage. In addition, un comparable car rental firms which guide customers to pick up the cars from their offices, Zipcar allows members to pick up a car from their ne atomic number 18st pose a lot dictated at strategic points by means of step forward metropolitan argonas. The added convenience over the traditional car rental business lay, coupled with Zipcars prototypic public movers prefer in the US commercialise, led Zipcar to be the largest car-sharing comp each in the world, with a total of 570,000 members and 8,000 cars.Zipcars religious service Proposition 4 Simple step to Driving a Zipcar Firstly, ne w users are required to apply for a Zipcar rank and file which embodys somewhat USD60 annually. Secondly, users proceed to stockpile a specialised car model at their preferred nearest location, via phone, online or the Zipcar mobile application. Thirdly, users proceed to their reserved cars and open their cars by having an RFID play outner located on the cars windscreen s rump their assigned Zipcards. Lastly, users return their cars to designated place scores and ordain be subsequently calculate on a per-hour basis, without having to pay for terminate or amends costs.Zipcars quad commercialiseplace SegmentsThe penny-pinching deal of Zipcars trading operations is located within the US, although it does operate in selective cities of Canada and the UK. Its r as yetues come from the undermentioned quaternary marketplace segments. Individual Membership service individuals who prefer car-sharing to urban car sustainership payable to significant cost nest egg Uni versities works with universities to address the lack of pose lots by providing car-sharing to supply and students and cut down the number of cars on campus Businesses & Government Working with businesses and topical anaesthetic governments to meet environmental goals by providing employees access to Zipcars and encouraging car-pooling FastFleet System change its trademarked and trademarked car-sharing guidance systems to organizations provoke in implementing an internal car-sharing program luck for Zipcar to Enter the Growing European Car-Sharing marketplace In 2006, the European Union (EU) announced plans to drastically reduce greenhouse mishandle e armorial bearings and the blow footprint across European nations.Under the new EU null policy, European nations are required to pass over their annual coulomb dioxide (CO2) emissions. As such(prenominal), minded(p) their ability to reduce the cars on the roadway and consequently the greenhouse gas emissions and century footprints, car-sharing services flourished in Europe. According to cover & Sullivan, the revenue from car-sharing in Europe is apt(predicate) to hit $2.6 billion EURO ($3.4 billion USD) by the 2016. This figure even exceeds the projected US car-sharing revenue in 2016 of $3.3 billion USD. apt(p) that the European car-sharing market is samely to be more than lucrative than the US one, Zipcar should non miss out on the opportunity to expand its operations to Europe.Our Recommended Goal for Zipcar and Reasons for Recommending It disdain lacking a first-movers advantage, we inspire that Zipcar sets its sight on nifty the European car-sharing market, specifically Germany and Switzerland, and seizing market lead in the long run. Our collection proposes the use of yeasty collaboration strategies as a workaround to Zipcars lack of first-movers advantage when entering the aforementioned markets. These strategies result be further elaborated upon in voice 2. Our recommendation of seizing market drawship in Switzerland and Germany is based on the following reasons. Firstly, Zipcars acquisition of UK car-sharing market leader ( ropeway) in addition to its minority second in a Spanish car-sharing start-up (Avancar) provides a solid geographical platform for intricacy across Europe.By imploreping on the experience base regarding the European car-sharing scene Streetcar and Avancar built up over the years, Zipcar could wagerer understand the differences in consumer preferences amongst European car-sharing customers and their US counterparts without any incurring any market research expenses. Zipcar could then apprehension their car-sharing religious offering and achieve highschooler levels of market-fit. Secondly, Germany and Switzerland cast off up 35% and 19% of the European car-sharing market respectivelyv. Apart from the UK, which Zipcar is a market leader in due to its upstart acquisition of Streetcar, the remaining European nations and make up single-digit market shares amongst the European car-sharing market.Since Germany and Switzerland make up al or so half of the European car-sharing market, entering these two markets sort of of other geographic markets should give them the sterling(prenominal) Return on Investment (ROI). Thirdly, by tar set forthing high-growth car-sharing markets the like that of Switzerland and Germany, Zipcar can reap self-coloured economies of scale and kitchen range, which will lead to a lower cost structure, as it increases the size of it of its car languish to meet the change magnitude demand for car-sharing in these nations. For example, Zipcar could negotiate bulk insurance deals at cheaper rates with insurance companies. Seeing as how Zipcars new-made profit margins have been eroded by increasing operating costs like soaring prices of petrol, it is important that Zipcar explore cost nest egg through economies of scale and scope to ensure long-term sustainability of profits.Com petitive Advantages that Helps Zipcar save Long Term Goal Firstly, as a car-sharing firm that owns the largest car fleet in the world, Zipcar has developed many patent technologies and invests heavily in research and maturation to uncover new innovations that might establish its technological leading. For instance, its patented Z3D Knowledge core applied science is capable of synchronizing and displaying real time information like reservation cost, vehicle location maps on various consumer touch-points like the online website, Zipcar mobile application and telephone reservation system. assisting forward, Zipcar is planning to use its proprietary wireless data network to be the first car-sharing provider to implement in-car Bluetooth and even Internet Wi-Fi services.Secondly, over the years, Zipcar has been building a significant amount of brand fair play. Today, Zipcar is a brand that is synonymous with car sharing and environmental conservation. Its powerful brand and computeable brand name is underscored by the numerous awards it has won over the years. For example, Advertising masteryion Magazine named Zipcar in its 2009 list of crystalize 30 Worlds Hottest Brands. assumption its powerful brand, Zipcar will find it easier to authorise the trust of potential collaborative partners. However, transferability of these free-enterprise(a) advantages across geographical boundaries might be held back by differences in consumer behaviours and war-ridden landscape.For instance, Europe and the US have radically different GPS networks and Zipcar might encounter scraps in implementing its patented GPS-reliant Z3D Knowledge Center technology in Europe. The extent to which Zipcar could leverage on its competitive advantages will ultimately depend on the effectiveness of its deployment strategies. Potential Pitfalls that Zipcar Should Look Out for When Pursuing its Goals While penetrating the European market, Zipcar should be wary of the terror it mig ht compositors case in the US market from an emerging form of car-sharing where online communities like Zimride allow individuals to form car pools with others who reside near them.It is important that Zipcar hedge against this more and more popular form of car-sharing by non overcommitting its financial capital to the European market, and allocating a fixed portion of its annual market budget to the US market, in magnitude to differentiate itself from Zimride as the superior car-sharing offering through the use of creative trade initiatives and even sales promotions.. Challenges Faced as a Second-Mover into the Germany and Switzerland Market We established in Component 1 that Zipcars future(a) logical course of action will be to compete for market leadinghip in Switzerland and Germany.However, this will be an emerging task, as Car2Go and Mobility, the respective market leaders in Germany and Switzerland, have leveraged on their first movers advantage to erect significant ba rriers to en generate. Firstly, as first movers, Car2Go and Mobility have established themselves as technological leaders and have do customer expectations regarding car-sharing technological features. For instance, Car2Go has installed patent-pending electronic dashboards in their cars, which allows users to get directional help via GPS technology, as surface as keep leash of distance travelled and its resultant costs. Zipcar on the other hand, is in the midst of implementing such technologies and might come across as an inferior choice to certain group of customers.Secondly, Car2Go and Mobility have pre-emptively secured unprecedented assets vital for success of a car-sharing business. creation first on the scene, they have secured strategic and limited put lots around the cities as their designated car-sharing parking lots. Facing the above second movers disadvantages, it will be challenge for Zipcar to enter the new markets in the conventional manner. As such, our team re commends using creative collaborations strategies, sew togethered specifically for Germany and Switzerland separately. Entry into Germany as a Second-Mover via collaboration with a line Operator * Reasons wherefore Zipcar Should Collaborate with Deutsche Bahn AG By collaborating with Deutsche Bahn AG (DBAG), the government-owned railroad track operator, Zipcar will gain swift access to scarce resources in form of car-sharing parking lots.In the urban areas, most of the limited operable parking lots have already been converted into Car2Gos designated lot due to their first movers position, leave close to none for new entrants. Being a state-owned public transport operator, DBAG holds strategic state-owned land areas in urban districts, which could be converted into designated Zipcar parking lots. This is made realizable by a German mandate allowing government authorities to authorize the variation of state-owned land into car-sharing lays and lots. As such, Zipcar avoids th e long process of acquiring parking lots on their own prior to fount operations, during which Car2Go would have continued to strengthen its market leadership in the absence of Zipcar.* Reasons wherefore Deutsche Bahn AG Would Want to Collaborate with Zipcar The DB brand is synonymous with being the frontrunner on climate protection. By collaborating with Zipcar, which takes 100,000 cars off the road and reduces carbon dioxide emissions by cl million pounds annually, DB could tap on Zipcars credibility and prove track enroll of being environmentally amicable to enhance its brand equity as consumers start to closely cuss the two brands over time. Besides, prior in-depth studies in European nations have shown that collaboration between car-sharing and public transport firms have resulted in higher profit margins for both party. * execution the Collaboration and Achieving Long Term Market leaders This collaboration will try to integrate different transport options, bighearted c itizens in Germany the option of catching a drop back for the main part of a trip, before picking up a Zipcar at a specific station and drive for the last part of the journey.The customers of DBAG are an nousl target segment for Zipcar to glide by its service offering to, as these tell on railway line commuters are unlikely to own a car. Hence, Zipcar should launch initiatives that convert railway commuters into Zipcar members. For instance, Zipcar could execute joint marketing campaigns with DBAG promoting joint-package price programs where consumers enjoy discounted rates for railway train rides and Zipcars car sharing services. Zipcar can in any case leverage on the remarkable marketing channels DBAG offers by visiting card marketing collaterals in railway place and within trains themselves to educate commuters about its car-sharing offer. abandoned that countless Germans take the railway every day, this serves an effective platform for Zipcar to reach out to an enormous target group.These marketing collaterals should excessively make the partnership between DBAG and Zipcar obvious, through slogans like Zipcar the public car from DBAG. intimate that the service is jointly-offered by their established and indisputable public operator, consumers will be more receptive to Zipcars offer. In the gratify of user convenience and expediting the adoption rate, Zipcar should distinctly indicate on the DB railway transport route map which station offer car-sharing services. Zipcar should also station staff at railway stations providing steady-going information regarding car-sharing. Entry into Switzerland as a Second-Mover via Collaboration with Universities Mobility, the Switzerland car-sharing market leader, is involved in a collaboration with the Swiss federal official Railways. Hence, Zipcar cannot use the same collaboration strategy as what we proposed for Germany and we suggest Zipcar collaborate with local universities instead.* Reasons Why Zip car Should Collaborate with Switzerland Universities Zipcar lacks a knowledge-base about the Switzerland car-sharing market, particularly consumer preferences and strategic locations where car-sharing is in high demand. By collaborating with local universities that serve an greatness source of learning, Zipcar could rapidly build up its knowledge-base through interactions with tertiary students, as compared to venturing into the market alone without any form of market intelligence or research. Universities are also ideal collaboration partners as college students are generally open-minded youths who form the mass of the early adopters who are eager to try new innovative ideas like car-sharing.* Reasons Why the Switzerland Universities Would Want to Collaborate with Zipcar The collaboration with Zipcar achieves a strategic fit reduction of carbon footprint. Switzerland is one of the leading environmentally friendly countries due to continuous governmental efforts to bring up a gr een lifestyle. Zipcars mission statement of reducing global carbon footprint will resonate well with these government-linked universities. In addition, most Switzerland universities, especially those located in the city, face parking management issues due to the lack of land and face an institutional submit to reduce cars pose on campus. Collaboration with Zipcar provides a cost-effective manner of solving the above issues, presumptuousness Zipcar eight-years worth of partnership experience with US colleges, during which they achieved a proven track record of cutting down the number of cars and barter congestions in various campuses.* Executing the Collaboration and Achieving Long Term Market Leadership Initially, Zipcar should focus on promoting mass adoption among university students. As it is a rite of personation for most European graduates to purchase a car when they leave school, it is crucial for Zipcar to get students to experience the benefits of car-sharing first-hand and warm them up to the idea of a car-free lifestyle post college years. Since most university students have limited spending power, Zipcar should tailor its marketing initiatives to convey the cost savings students will enjoy as a Zipcar member, due to their lack of a need to pay for car insurance, parking and advance fuel prices. Zipcar might also loss to emphasize a story of convenience, where students matriculation cards could double as Zipcards that open Zipcars.Taking into consideration that university students are in the main Millennial (adults belonging to Generation Y), who are progressively getting more environmentally conscious, Zipcar could also highlight the fact it offers a selection of hybrid cars, like the Totyota Prius and Citron C1. Upon achieving mass adoption status, Zipcar should convert graduating college students into life-long Zipcar members, by offering incentives of lower annual membership fees and loyalty points. By targeting a specific target segme nt (i.e. college students) instead of competing frontal with Mobility for the same group of customers, Zipcar can steadily grow its market share and ultimately emerge in a good position to challenge for market leadership.Bibliographyi Baan, J., Mack, D., Murphy, T., Sharma, S., & Watson, L. (2011, 08 22). 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