Case Study of Zip Car

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The ZipCar Revolution Case Analysis: Study of an Innovative Idea Abstract Over 15 years ago, Scott Griffin, the future CEO of Zipcars, had a vision. His vision was to revolutionize the concept of rental cars. It was his dream to offer people a ‘shared ownership’, much like we have timeshares of reality. Crazy? Some people don’t think so. Here’s how it works. Zipcar offers a unique membership which allows its customers the opportunity to drive whenever, wherever, and whatever car they want without having to own the car. Zipcar members, known as Zipsters, are given a level of convenience and choice which breaks (or maybe combines) the rules of the both the automotive and rental car industries. “The Zipcar proposition begins with offering members convenient access to a car without the burdens of full ownership. Zipsters can save an average of $500 a month compared to car owners, and Zipsters have more time to pursue their interests.” (Champy) It’s members are allowed to pick up a car (full tank and no insurance costs) of their choosing in a neighborhood close to them and return it to that same location within hours or days for low prices. Since it’s inception, Zipcar expanded it’s concepts. It has gone from just an urban legend, to a co-operate partner (i.e. Ikea) and student friend (Vanderbilt, University of Florida). According to Charles Fleming, of the Los Angels Times, “in Boston [Zippcar recently tested a] One>Way [concept], a new Zipcar offering that will allow ‘Zipsters’ to pick up and drop cars in different locations a new Zipcar offering that will allow ‘Zipsters’ to pick up and drop cars in different locations.” (Fleming) The purpose of this case study is to determine how Zipcar was and has been able to offer such great products as such a low price and stay in business. Marketing Concept/ Strategies: Marketing Mix “The Marketing Concept

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