Zipcar Competitive Advantage Overview
Katina King
Brenau University Competitive Advantage Zipcar’s competitive advantage is the company has provides a new innovative alternative to automobile ownership. The “go green” era has many people considering whether or not owning a car is necessary in major cities because of the many transportation alternatives. Zipcar offer its member a way to use automobiles only when needed. Zipcar offers two distinct products: car sharing and fleet management. Zipcar competitive advantage focuses on a future where car sharing will override car ownership. As inner city population continues to grow, people are searching for ways to save money on transportation expenses, getting rid of their personally owned vehicles is a welcoming choice. With Zipcar’s car sharing concept, people are saving hundreds of dollars over personal and business car ownership (Zipcar, 2015). Zipcar service is a convenient amenity in over 50 cities throughout the United States, Canada and the United Kingdom. To date, Zipcar estimate it has taken more than 150,000 cars off the road (Kiron, 2013).The car sharing service targeted market is individuals in major cities, select universities’ students and staff, and private and government organizations looking for car ownership alternatives (Borja, et al., n.d.). The niche is to be the company which solves the major parking, overcrowding and transportation issues many metropolitan residents and businesses complain about.
Car dependency is one of the most important problems in the United States. Owning a personal car is mandatory in most small towns. All roads are designed for cars without pedestrian ways, and so much of the land is reserved for parking lots. Pedestrian-friendly cities’ rates are really low when it is compared with car-friendly ones.
The competitive advantage for Canadian Tire stems from the dependency on its dealers and how they interact with their local economy and community. As the dealers are at the front line in garnering profits and attracting and retaining customers, it is critical that they adjust the supplies and stocks accordingly to the needs of their community. The competitive advantage for the Canadian Tire brand relies on three key elements that the dealers possess in order to support a growing and profitable business. According to the Canadian Tire Annual Report (2010), the brand depends on the “business instincts, [the dealer’s] connection and commitment to their communities and their local market insights to ensure [they’re] offering relevant products at competitive prices” (p. 29).
The company markets its unique products to youth markets which it feels are underrepresented and inadequately reached by its competitors. The company uses innovative and creative, and it effectively set Jones Soda apart from the competition. By allowing consumers to assist in package design, Jones Soda became a brand that concerned itself more with the consumer than with the actual product. This has made consumers feel more relevant, has given them a sense of ownership over the brand, and has encouraged customer loyalty. Due the field is so competitive with several ways to stay competitive in their designated field. Through distribution, brand name, brand image, price, labeling and packaging, advertising, quality of the beverage, and new ideas they have accomplished this. Jones Soda competes for customer appreciation, retail shelf space and for marketing focus by their distributors, who also distribute other beverage brands. Jones Soda currently distributes their products in several retail outlets. These outlets include Barnes and Noble, Panera Bread Company, Cost Plus World Markets, Starbucks and Target Corporation. As well as these mature locations, Jones Soda also distributes to other independent vendors.
Public transportation provides numerous positive attributes to the community at large. It enhances personal opportunities by providing personal mobility and freedom, gives people transportation options to get to work, go to school, visit friends, or go to a doctor’s office, provides access to job opportunities. It saves fuel and reduces congestion, provides economic opportunities and drives community growth and revitalization. Statistically, every $1 invested in public transportation generates approximately $4 in economic returns, every $10 million in capital investment in public transportation yields $30 million in increased business sales, every $10 million in operating investment yields $32 million in increased business sales, and from 2006-2011, residential property values performed 42 percent better on average if they were located near public transportation with high-frequency service. Public transportation saves money and reduces gasoline consumption. According to APTA’s transit saving report, a two-person household can save, on the average, more than $10,174 a year by downsizing to one car. Public transportation use in the United States saves 4.2 billion gallons of gasoline annually and households near public transit drive an average of 4,400 fewer miles than households with no access to public transit. Public transportation also reduces the carbon footprint in that its use
To launch our business we will be partnering with Airbnb, airports, hotels, and businesses. Partnering with Airbnb will allow us to accommodate customers who are looking for a car while they are staying at their Airbnb. Knowing a car will be handy for them to use at their selected destination will allow customers to choose and pick the best place for them to stay and it can all be done easily together when partnering with Airbnb. Partnering with airports will be another way to cater to customers needs. Having airports designate a select area for RIGHTRIDE’S cars will allow traveling customers to know that they will have a car to use while they are in whichever state they are traveling to. Hotels is also another partner that can help our product
The article, “Automakers Prepare for an America That’s Over the Whole Car Thing,” by Neal E. Boudette, was published on December 22, 2016 in The New York Times. Boudette informs the reader about how “novel” technologies are creating new alternative ways for people, particularly in urban settings, that commutes to different places. Young Americans consider owning a car unnecessary, or a necessary expense. Carmakers are looking at a future where cars will play a little role, or no role at all, in many people’s daily routines. Thus, many industries are in the process of
The article I chose this week is by Ester Fung and gives light to a lifestyle I hope to never find myself…living in a big city without a car. Housing developers in big cities such as New York, San Francisco, and San Diego are opting to build apartment complexes and condos without the option of parking spaces for residences. One developer claims, “It’s the future…there is a strong demand for people who want to buy or rent units that are efficient”, while “local authorities seek to encourage the use of mass transit and free up space for parks, housing and other uses” (Fung, 2016). Parking decks and garages cost big bucks, and in cities where space is limited those decks have to be built underground, driving prices up and onto the consumer.
Watching “SpongeBob SquarePants” as a child made me realize that owning a vehicle is vital in order to get our desire destinations safely and punctual. There were numerous occasions where I found myself dependent on others. Though there are countless of bus stops I can use for transportation, I am not comfortable riding in one. Walking is another type transportation I took for school and work. However, a rainy day impedes a travel by foot. Additionally, riding my bicycle was another way I got around. My errands require extensive transportation on a daily basis. I did not want to be a burden any further. Luckily, I discovered Uber. I am pleased and relieved that I have discovered a reliable way to get to my destinations at a reasonable price.
The company that we will be covering is J.B. Hunt Transport Services, Inc. JB Hunt is a transportation company, primarily trucking, that is based in Lowell, Arkansas and was founded in 1961. The company has 16,000 employees, with 12,000 trucks, and 47,000 trailers in operation; they offer their transportation services to Canada, Mexico, and the continental United States. We chose J.B. Hunt because they are leading innovators in green transportation by using environmentally friendly fuel, reducing empty miles, training drivers to drive in a fuel-efficient manner, and a myriad of other green innovations (J.B. Hunt, 2015). J.B. Hunt’s innovations have made them one of the most competitive transportation companies in the nation (J.B. Hunt, 2015). Compared to their competitors, they have the same amount of drivers, but bring in double the profit margins. Among their extensive list of awards and honorable recognitions are included the Most Innovative Third Party Service Provider from Voluntary Interindustry Commerce Solutions, one of America’s Most Admired Companies from Fortune Magazine, Top 500 Greenest Big Companies in America from Newsweek Magazine, and Top 100 Companies for Employee Training from Training Magazine. They have been leaders in developing environmentally friendly forms of product transportation and many companies have adopted their progressive methods (J.B. Hunt, 2015).
Cons: The is difficulty in carry out this approach. And it takes long time. The investors cannot see the good performance of Zipcar immediately. Then it will increase the difficulty of raising fund.
In recent years, major cities across the globe have developed innovative new methods of transportation that could revolutionize the way humans travel and ultimately replace automobiles throughout the industrialized world. Many supporters of this movement believe restricting the use of cars will have a positive impact on society as a whole. Some people believe that taking away automobiles is preposterous given the gravity of which citizens depend on them; although true, replacing cars would have significant benefits throughout society that would outweigh this consequence and ultimately create a new global social order. Restricting cars in cities and encouraging alternate methods of transportation would reduce humans’ carbon footprint, make cities
Even though the Ford Motor Company is currently doing extremely well in the automotive industry, they are currently emerging opportunities to be a leader in electrification, autonomy, and mobility. The Ford Motor Company recently purchased SAIPS and Chariot. “SAIPS is a world-class provider of customized algorithmic solutions in the fields of computer vision and machine learning” (Crunchbase, na, nd). Chariot is a company that offers shuttle service and commuter mobility programs in larger cities. The purchase of these two companies will help the Ford Motor Company as they expand as a mobility company as well as the leader in the automotive industry. According to the article, Ford Outlines Growth Plan, “Ford is evolving its business in three ways:
The automobile industry has brought the United States economic growth due to the impact that automobiles have made on society. There has been a plethora of jobs associated with the auto industry, including manufacturing, auto repairs, insurance, and the development of roads, sales, and auto parts to enhance vehicles. Cars, trucks, and SUVs’ have become a way of life for people and have made an additional economic impact by becoming the primary means of transportation for consumers to commute to and from work, vacations, and travel between destinations. Most family households live on a budget and they must make the decision of how much of their budget they can allocate to transportation costs.
The use of ride-sharing applications has become a popular choice to travel from one destination to another. In the past, cities were dominated by the use of taxis as a means of ride choice. As technology and society has evolved, ride-share applications such as Lyft have become a dominating choice for travel. After completing a PEST and SWOT analysis, Lyft can analyze how to proceed going forward to continue its growth and success.
[Case: Zipcar] Zipcar’s SWOT and financial analysis a) Strengths Firstly, Zipcar seized 80% of US market share, making it the strong player in the market. Secondly, as the company is able to acquire its competitors (Flexcar-US, Streetcar Ltd-UK), they can reduce the competitors as well as gain those market shares and customer bases from those 2 companies. Thirdly, Zipcar’s customer-friendly and disruptive business model is what makes it unique. They leverages accessibility, make it available close to where people live or work and need access to vehicle, which is one of the threat of car renting. The company also allows the members to use a car when required, which provides true flexibility. Supported by advanced technology (RFID System r),