Zipcar Case Analysis

386 Words2 Pages
Ting Guo Management Information System 02/05/2014 Zipcar Case Analysis 1. Analyze the business model of Zipcar using Porter’s five forces model. The business model with which Zipcar came up with is quite unique and it is difficult for competitors to copy because Zipcar is taking heavy use of technology. Whereas the traditional car rental companies have a different type of infrastructure and setup and so they cannot imitate Zipcar’s strategy overnight. In the case of Zipcar there is no or very little overhead and other car rental companies have a lot of overhead. There are advantages and disadvantages with Zipcar over the traditional car rental companies. Customers would need to weigh the convenience they get with the Zipcar like the ability to rent a car for few hours from a location of their choice (like downtown) and no lines and no time is wasted that way. Since Zipcar doesn’t depend on proprietary goods, they need not to look at supplier power as an issue. 2. Discuss the synergy between the business strategy of Zipcar and information technology. I see a complete strategy and synchronization between Zipcar and information technology. IT is a crucial part of Zipcar’s success and their technology. Zipcar is bringing the convenience which is the primary goal of the company and it is being achieved with the help of IT in the case of Zipcar. Every step in the process like booking a rental, all the agreements, payments, pickup and drop off etc, everything is done with the help of IT. 3. What network effects are part of the strategy of Zipcar? How do they add value? Zipcar uses social networking as the medium of communication with the customers and so are the customers among themselves. I believe that customers are more open when they express opinions in those websites than they would be when talking to a person. So, open, honest feedback and reviews
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