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Zipcar

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Porter’s five forces applied to Zipcar
Threat of new entrants:
Potential new entrants include existing car rental firms, companies that currently supply cars to car-sharing businesses (such as Volkswagen), and new start-up car-sharing ventures. As Zipcar is operating in only Boston, there are opportunities for new entrants (with sufficient resources) to establish themselves as dominant car-sharing service providers in other cities. This threat to the profitability of Zipcar’s planned future expansion activities would pressure Zipcar to expand rapidly in order to remain ahead of the competition. A major barrier to entry is Zipcar’s patented technology involving wireless transmission of usage data between the shared cars and a server. New …show more content…

Such advertising techniques have generated a lot of publicity for Zipcar, enabling the company to build brand recognition and attract customers without incurring huge marketing costs.
Services are convenient because reserved cars are parked within short walking distance from user locations and public transport stations. In addition, reservations can be made online or over the phone at any time.
Zipcar has invested heavily in developing a patented technology platform that can be used only by the company. Each driver is given a unique Zipcar card that can unlock the car door at the specific time for which the subscriber has booked. The driver need only be concerned with unlocking the car and driving. While the car is in use, usage data is transferred (real-time) wirelessly to Zipcar’s head office. Data is
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recorded and stored to ensure correct billing. The data collection and billing processes are timely, accurate and hassle-free, contributing to the ease and efficiency of Zipcar’s business operations. Furthermore, the reduction in manual recording (and therefore the use of paper) has reinforced Zipcar’s green image.
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Recommendations
The minimum age for Zipcar drivers could be lowered to 18 years old. Zipcar would be able to attract more subscribers and earn more revenue. Provided that the company’s incident record regulations remain in place, most 18 year old drivers would be responsible and reliable. If there is doubt,

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