Analyze the Business Model of Zipcar Using Porter’s Five Forces Model – Essay – Guzel Bulekbayeva
Search
Essays
Sign up
Sign in
Contact us
Tweet
Index
/Business
Analyze the Business Model of Zipcar Using Porter’s Five Forces Model
Masters in Engineering Management (MEM)School of Engineering[pic 1]Information Systems ManagementCase Study 2-2: ZIPCARGuzel BulekbayevaID: 100001876Date: 18-Sep-2015Analyze the business model of Zipcar using Porter’s five forces modelThreat of New Entrants: There is a medium threat of new entrants on the market. Although the car rental system have existed long time, the hourly system was first introduced by Zipcar. Existing companies can enter the new market of hourly rental business easier, because it is only required to make capital investments to develop a system, similar to the Zipcar. The uniquely developed IT system of Zipcar raises the barrier of entrance to new companies. For newcomers of the business the entry barrier is higher, because of increased capital investments, necessary to open a car rental business. However, in general, since the Zipcar raised the awareness of such rental system, for new entrants to the business it will not be necessary to educate the public of the product, therefore the entrants to this marker will hold much less risks. Bargaining Power of Buyers: The bargaining power of buyers is low-to-medium. Because of the high demand for this service, the company can dictate the cost for a product. On the other hand, the community of Zipsters, by sharing the experience of using Zipcar, can be in control of quality and prices of this service. Bargaining Power of Suppliers: Because of a wide range of possible supplier across the country, the bargaining power of suppliers is low. Threat of Substitutes: At that moment, several substitutes existed to the service:Taxi. As quick and convenient as Zipcar, the taxi did not require any membership and application fees.Public transport. Very cheap alternative to Zipcar, however, not as convenient. Own car. Quick, convenient and cheap alternative for those, who are travelling in their own cities or countries. For travellers this might not be an optionBike. Much cheaper than Zipcar, can also be obtained 24/7. But not an option in winter, and the travel time is much longer than a travel time of a car. Industry Competitors: There are several main competitors of the product: Existing traditional car rental companies. Enterprise, Hertz have later entered the market of hourly rental. (Trevis Team 2012) However, at the time of the Case, these companies still lacked this system and used conventional methods of renting cars, and thus, the Zipcar had hold a unique competitive advantage. Peer-to-peer car rental companies: GetAround, RelayRides. (Gaille 2014) Again, these online-based car rental services appeared log after Zipcar. Discuss the synergy between the business strategy of Zipcar and information technologyThe strategy of Zipcar is closely interlaced with the information technology. Usage of information technology in the car rental has given the company a strong competitive advantage. The ability to rent a car without going to the rental place and standing in the lines was reached through online booking and tracking system. The Zipcar uses IT in every part of the system: from booking and rental, opening of the car, and creation of community to share experiences. Thus, using IT in the car rental the speed and convenience of the service has been achieved, as well as effective advertising.
Continue for 3 more pages »
Read full document
Download as (for upgraded members)
Citation Generator
MLA 7
CHICAGO
(2015, 09). Analyze the Business Model of Zipcar Using Porter’s Five Forces Model. EssaysForStudent.com. Retrieved 09, 2015, from
“Analyze the Business Model of Zipcar Using Porter’s Five Forces Model” EssaysForStudent.com. 09 2015. 2015. 09 2015 <
"Analyze the Business Model of Zipcar Using Porter’s Five Forces Model." EssaysForStudent.com. EssaysForStudent.com, 09 2015. Web. 09 2015. <
"Analyze the Business Model of Zipcar Using Porter’s Five Forces Model." EssaysForStudent.com. 09, 2015. Accessed 09, 2015.
Essay Preview
1 rating(s)
By: Guzel Bulekbayeva
Submitted: September 21, 2015
Essay Length: 839 Words / 4 Pages
Paper type: Essay Views: 4,308
Report this essay
Tweet
Related Essays
Porter Five Forces Model
Porter's Five Forces A MODEL FOR INDUSTRY ANALYSIS The model of pure competition implies that risk-adjusted rates of return should be constant across firms and
2,078 Words  |  9 Pages
Porter’s 5-Forces Model
PORTER'S 5-FORCES MODEL A means of providing corporations with an analysis of their competition and determining strategy, Porter's five-forces model looks at the strength of
291 Words  |  2 Pages
Porter’s 5-Forces Model
A means of providing corporations with an analysis of their competition and determining strategy, Porter's five-forces model looks at the strength of five distinct competitive
289 Words  |  2 Pages
Analyze Coca-Cola and Its Business Strategy Using the Value Chain and Competitive Forces Models
Analyze Coca-Cola and its business strategy using the value chain and competitive forces models. Ans. Firm Level A value chain is a chain of activities
668 Words  |  3 Pages
Similar Topics
Porters Profit Vrio Model
Porter five forces of NIKE
Get Access to 89,000+ Essays and Term Papers
Join 209,000+ Other Students
High Quality Essays and Documents
Sign up
© 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers
Essays
Sign up
Sign in
Contact us
Site Map
Privacy Policy
Terms of Service
Facebook
Twitter