Case Study 2-2 ZipCar Case Study MIS 204

1.)

Porters Five Forces model Po er o! pote"tial e"tra"ts is medium# -$%ere is $raditio" car re"tals &rect 'arriers o! e"try 'y# -("i)ue 'usi"ess model %ic% is 'ased upo" I$ plat!orm

*ar+ai"i"+ Po er o! 'uyers is rated lo -moderate ,Medium)# --ar+e "um'er o! 'uyers. 'ut very !e real po er!ul 'uyers. $%us leadi"+ to lo er 'ar+ai"i"+ po ers. 'ut o"li"e commu"ity could 'ecome a pote"tial ris/

$%reat o! su'stitute products is %i+%# -$a0is1 Car 2e"tal services -Pu'lic $ra"sportatio" ,*uses. etc.) -3 " a car ,4e 1(sed) -3r a Family1Frie"ds car %ic% you 'orro

2ivalry amo"+ competitors is lo # -$%ere is competitio" amo"+st t%e lar+e "um'er o! car re"tal compa"ies %ic% lac/ di!!ere"tiatio" 'ut price competes

2.) $%e sy"er+y 'et ee" t%e 'usi"ess strate+y a"d i"!ormatio" tec%"olo+y ,I$) is a critical resource !or t%is 'usi"ess. I$ is e0pe"da'le to ma"y departme"ts1tec%"olo+ies to adva"ce1update a"d provide t%e compa"y it% +ro t% a"d /"o led+e. Zipcar uses I$ to provide it o "s 'usi"ess model. a"d i" retur" %elps Zipcars 'usi"ess strate+y. 5.) $%e "et or/ e!!ects t%at are a part o! t%e strate+y o! Zipcar are t%e called 6Zipters.7 $%ey are a prese"ce i" social "et or/i"+ a"d creative i""ovatio". e0ample ould 'e 6$ eeters7 !or t%e +lo'al social "et or/ called 6$ itter.7 $%is e0ample s%o s t%at t eets are a part o! t%e social "et or/ commu"ity o" t itter. as Zipters are it% Zipcar.

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4.) 9s stated a'ove i" t%e Porters !ive !orces model# Po er o! pote"tial e"tra"ts is medium# -$%ere is $raditio" car re"tals &rect 'arriers o! e"try 'y# -("i)ue 'usi"ess model %ic% is 'ased upo" I$ plat!orm

*ar+ai"i"+ Po er o! 'uyers is rated lo -moderate ,Medium)# --ar+e "um'er o! 'uyers. 'ut very !e real po er!ul 'uyers. $%us leadi"+ to lo er 'ar+ai"i"+ po ers. 'ut o"li"e commu"ity could 'ecome a pote"tial ris/

$%reat o! su'stitute products is %i+%# -$a0is1 Car 2e"tal services -Pu'lic $ra"sportatio" ,*uses. etc.) -3 " a car ,4e 1(sed) -3r a Family1Frie"ds car %ic% you 'orro :ays to avoid1sustai" a competitive adva"ta+e# $%ere are various ays !or Zipcar o'tai"1sustai" a competitive ed+e# 1. I""ovate to /eep yout%!ul"ess1!res%"ess1u"i)ue"ess 2. *uild upo" curre"t services a"d per!orma"ces 5. *uild %i+%er i""ovatio"1re+ulatio"s so "e competitors %ave a tou+%er time to e"try i"to mar/et 4. Compa"ies use o! pate"ts a"d1or copyri+%ts o" services or tec%"olo+y ca" protect compa"y ,Zipcar) !rom competitors copyi"+ tec%"olo+y or services ;. Zipcar ca" re+ulate prices a"d availa'ility o! tec%"olo+y to pu'lic a"d competitors to %ave e0clusive ed+e or e0clusive services t%at ot%ers ca""ot o!!er.