Zipcar Business Model

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Zipcar Business Model Sharon R. Jones Grantham University Dr. William Reed- Instructor HPI 633 Knowledge, Learn and Enterprise System 13 August 2013 How might you apply Porter’s five force model to Zipcar business model? Porter’s five forces analysis is designed to provide a simple perspective for assessing and analyzing the competitive strength and position of any given company, namely for this lesson Zipcar. In reading the case work, I found that the competitive rivalry force for Zipcar is moderate to strong. Zipcar’s major competition stems from other rental car companies that provide similar services. Although, this is an issue for Zipcar, they have a competitive advantage over the competition due to the flexibility of the service that they provide and offer to the customers. Some of Zipcar’s major competitors are the transportation providers, such as taxi cabs and public transportation. Zipcar has managed to have an advantage over these transportation providers by providing cheaper service for long distance travel, which would prove to be more expensive if a taxi was used and for providing services in virtually any location, whether dense or lighted. Supplier power for Zipcar is evaluated as moderate. Zipcar uses its own line of cars to provide rental car services, which provides for no delays in car availability from third parties. Zipcar has built strong relationships with petroleum stations and with repair stations that has provided them with consistent fuel supply as well as timely car repairs when needed. The buyer power in the competitive position of Zipcar is strong. Buyers can easily choose between other car rental services, for instance, if a potential buyer feels that his/her needs will not be satisfied, they can easily switch over to a competitor for services. The power of a new market entrant is evaluated to be strong due

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