Zipcar Case Study

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Zipcar Case Study: Describe the key elements of Zipcar’s business model. What are its quantitative and qualitative critical success factors? What must be done in order to succeed? Key Elements of Zipcar’s business model Value Propositions Zipcar service provides convenience (ease of use, freedom to travel, hassle-free “ownership”,, cost saving, and environmental friendliness for urbanites. They have put emphasis on convenience and cost saving to stand out from their North American competitors, who have been focusing on environmental benefits. Customer Segments Zipcar had a clear vision of their target customers from the beginning: urban dwellers who do not need a car to get to work but want the convenience of a private vehicle time to time. Chase’s research shows that, among urban dwellers, college-educated individuals were the most receptive to this car-sharing business. Boston was the perfect location to launch the business. Boston, known as the “Walking City,” has a good public transportation system and many people do not own cars. The city also has insufficient and expensive parking, especially in the downtown area. With fifty colleges in fifty square miles, Boston has the highest concentration of students in the world. Key Resources There are two key resources that distinguish Zipcar from traditional car rentals: one is their wireless technology platform; the other is their parking location network, spread across the city at the most convenient spots for targeting customers. When a member makes a reservation for the closest available car, she rarely has more than a five-minute walk to a sparking spot. Critical Success Factors Chase’s early market research on existing car-sharing businesses in Europe and America gave them sufficient data and U.S. market analysis to enter. Chase also did research on the competition and even considered the

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