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E-Business Summative Presentation

Shevone Read

on 7 December 2014

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Transcript of Zipcar

Increased car fleet

More presence in new geographies

Fleet Sharing (Synergy between Zipcar and Avis) which means more availability of cars in more demanding conditions

One way rentals
E-business Infrastructure and Technologies
Environment Emphasis


Black Box/Kill Switch

Zip Card
Change Management - Zipcar Acquisition
Wheels when you want them.
Company overview
Zipcar is an American car-sharing rental company, who are now owned by Avis budget group
They offer a variety of cars which can be paid by the hour or day with all additional costs covered
Cars are accessed and unlocked using a membership card or smartphone
Currently operate in the US, UK, Canada, Austria, France and Spain
Consists of 700 employees and 900,000 registered members

Analytical Topics
Zipcar Grannies
E-marketing and

Market/ Industry analysis
E-business strategy
Change management
E-business Infrastructure and Technologies
E-marketing and M-Commerce

Car Rental Market
Oligopolistic Market
Profit not necessarily realised through variety of locations
Economies of Scale are more Crucial
Independents contribute to competition on local level
Top 3 are experiencing huge year on year growth whilst others maintain if not lose revenue
Industry Analysis
Car Rental Market
Market Share
Enterprise is market leader with market share higher than Hertz and Avis Combined

Other companies are negligible in percentage points

Although Cumulatively other companies + Independents account for 4.7% of Market Share

Buyer Power – High
Large Range of Suppliers in close proximity
Internet Price and Value Comparison sites grant buyer power
Reviews and Information on Rental Companies are available from consumer boards

Supplier Power – Low-Medium
Large Range of Suppliers in Saturated Automobile Market
Some Suppliers offer unique models that are sought after
Suppliers have to compete for contracts

Industry Analysis
Threat of Substitutes – High
Car Ownership
Public Transport, particularly in smaller cities
Other Carsharing Models i.e.Lyft, Blablacar, Zimride (Enterprise), Carpooling (EU),

Threat of New Entrants – Low
High Entry Barriers through economies of scale, fleet size and differentiation
Collaboration with Airlines, Airports and Businesses from existing competitors block distribution channels for new entrants
Schemes and Membership to generate Switching Costs Exist

Industry Analysis
Competitive Rivalry – High
Extreme Price Competition
Market Segmentation and Differentiation promotes competition in specific segments
Global Rental Market is even more competitive that US Market

Competitor Response to Zipcar
Hertz On Demand Program
eReturn Program
Lenient Age Restriction
Hertz Business rewards
Travel Partners

Carshare Program
Month or More Plan
Newer Vehicles
Poor Website/Mobile Tools

Hertz has been quick to respond, actively pursuing Enterprise market share and developing e-business elements to compete with Zipcar.
Enterprise has been slow to respond, attempting to focus on long term rental incentives, newer models but also replicating Zipcar’s carshare business model.
Market/Industry Analysis
E-Business Strategy
E-Business Strategy
Zipcar’s Unique Business Model capitalises on the various advantages to the consumer offered through the use of tailored e-marketing, segmentation and CRM.
The strategy also incorporates the buy side through resource management systems being integrated with the purchasing systems.
The combination of E-commerce used in these two ways allows the E-business Strategy to compliment Corporate Strategy to meet strategic objectives
E-Business Strategy - Buy Side
Embedded Technologies
‘Kill Switch’ to prevent theft
Gas Card

E-Business Strategy - Sell Side
E-Business CRM Implements
Website with tailored marketing to segments (Personal, University and Business)
Customer Account
FAQ’s, clear instruction guides, videos and rate/plan comparison to highlight benefits of Zipcar over traditional car rental
Mobile app capable of serving Zipcard Functions as well as Reserving/Identifying cars
SCM Technology
External Environment main factors
Social - Network effect of social media allows Zipcar to become exposed to a large market effortlessly

Economic - Lower disposable income means that people seek lower cost alternatives

Technological - Zipcar's operations depends on technology, NFC allows them to open their cars (increasing number of devices with NFC)
Students- Zipcar’s expansion in 2011 focused mainly on building its presence around universities and college campuses as the company acknowledges that 18-34 year olds are its most important market.
Small businesses- alternative delivery method/ employee travel.
Organisations- Croydon counil, London.
18-34 year olds wFull driving licence holders who do not own a car.










There are many influential external factors Zipcar has to consider
Zipcar has to maintain its strong technological infrastructure to implement their e-business strategy in a highly competitive market
The online sphere is paramount for zipcar, they use digital and social media to engage their audience
There has been a significant rise in mobile transactions and their application is becoming more popular
Place- easily accessed city locations.
Product- car-sharing network, social sphere and empowerment.
Promotion- Ziptopia.
Price- hourly rates, discounts for overnight rentals, and businesses.
Physical evidence- call centre available 24/7 for any query.
Process- individual and business online sections
Zipcar's Target Market
Corporate Strategy
E-Business Strategy
Marketing/CRM Strategy
SCM Strategy
Information Systems Strategy
Constraints and Opportunities
Customer Relationship Management
Retention - membership
Extension - rewards for frequent users/loyalty program
Focus on website, app and phone services
Full transcript