Zipcar Analysis

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Case Assignment #1

1. Zipcar motivates its customers and partners by truly addressing their needs and wants from a company like theirs. For example, customers want something that will save them money. Zipcar’s solution to this is an affordable way to use a car that’s much cheaper than buying your own car. It cuts out the need to buy insurance, maintenance, gas, parking, and the general cost of the car. Cities want to cut down traffic and congestion. By using Zipcar, people tend to drive fewer miles and be more efficient when it comes to driving to and from somewhere.

For customer motivation, I would rate them a 3, because most people would prefer to have their own car. Zipcar is not for everyone, but it is extremely useful on
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This could be a future problem with an over abundance of members.

Application Questions

1. One main problem is Zipcar’s flawed damages rule. Incidents have occurred where members return a car to its location in perfect condition then it’s damaged, most likely from another parking garage attendant. By Zipcar’s terms and agreements the member would be charged a hefty fine because of it, even though they had not caused it. This causes problems now and can in the long-term future.

Just like the previous question, another challenge Zipcar faces is rapid growth. Too much demand could affect the strengths of the company because of its limited supply of vehicles. When cars are booked and become unavailable, members will become frustrated in the company’s unreliability and use other forms of transportation. Losing the trust of their members could potentially be a big challenge for Zipcar.

2. City Car Share and Zipcar are obviously similar in which both are companies providing individuals with a car-sharing type service. There are similarities in their business models as well. Both companies are committed to improving the environment and the way of living by promoting an alternative to car ownership. Both of their goals are to reduce the traffic by taking cars off the street, the environmental impact of our cars, and the collective driving costs for its members. City Car Share and

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