This document analyzes Zipcar's business model and potential for expansion into India. It begins with an introduction to Zipcar and provides a SWOT analysis. It then examines Zipcar's marketing mix and discusses key factors to consider when expanding into new markets, including competitors, social changes, suppliers, demographics, government policies, and technology. It concludes that India is a perfect market for Zipcar based on recent research into car sharing feasibility there.

1. By:
Amit Das
Aminul Islam

2. INTRODUCTION
 Zipcar was founded in 2000
by Cambridge, Massachusetts residents Antje
Danielson and Robin Chase.
 As of February 2013, the company has 777,000
members and offers nearly 10,000 vehicles.
 On 14 March 2013 Avis Budget Group purchased
Zipcar.
 The company focused on three main customers:
Individuals
Companies

4. S.W.O.T. ANALYSIS
Strength
 Ease of use
 Style of its service (cool car)
 Technological sophistication (Wireless & RFID technology)
 Green Benefits!!
 Membership savings
 No usual hassles attributed to traditional car rental like reservation
after joining as a member.
 Effective branding through its website and fleets by using signature
Zipcar light green that symbolizes environmental friendly.

5. Weakness
 High dependency on technology for its seamless
operation like online reservation, payment and fleet
management.
 There is certain weakness in its marketing tactics as it is
largely unknown to urban masses.
 Its website failed to be search engine optimised.

6. Opportunities
 By been environmental friendly, it is in a very strong
position to entice customers who have strong view
about environmental and social concern.
 By establishing its presence on college, it has created
a strong awareness and foothold of new generation
fans.
 While rising fuel costs will push people toward Zipcar.
 Transit connection- fleet can be strategically parked
near train or subway stations for easy access to
member.

7. Threats
 Big car rental companies like Hertz, Enterprise entering
into car sharing market.
 Rising petrol can be an economic burden to Zipcar since
its rate is inclusive of petrol.

8. MARKETING MIX (4PS)
Product
• Zipcar offers more than 30 models of
vehicles
• All cars comes with equipped with GPS &
WIFI
• Clean fuel vehicles
Price
• Provide low-cost, economic car sharing
service (one-time application fee $25)
• occasional driving (from $8.25/hr and $84/day)
• extra value ($50/month then $7.43/hr and $75.60/day)
•Included with every plan: fuel, insurance
and up to 40 free miles per day
• Zipsters can save an average of $500 a
month compared to car owners

9. Promotion
 Print ads on public transportation
like Buses, Taxis, Subways etc
 Advertisement on Zipcar
properties
 Free membership for merchants
who prominently displayed Zipcar
pamphlets.
 Online marketing
 IKEA-the home goods retailer-has
sponsored 14 cars bearing both
the IKEA and Zipcar logos
 IKEA then created "Zipcar parking
only" spaces at its new store
Place

10. FACTORS THAT NEED TO BE CLEARLY
GRASPED BEFORE MAKING A DECISION OF
VENTURE ARE:
GLOBAL COMPETITORS
 Which other companies with similar service are
targeting the same market?
 Do they have any advantages? If so, what
(political ties, personnel from the market, etc,.)?
 Do they have any disadvantages? If so, what
(poor reputation in the market, legal issues at
home, etc,.)?
 What is their track record in new market entry?
If strong, what are their methods?

11. LOCAL COMPETITORS
 Are there any existing local companies in the target
market with similar service? If so, how many?
 How long have they been operating?
 What is their percentage penetration of the
estimated market size?
 What kind of barriers will they be able to erect to the
company entry?

12. SOCIAL CHANGES
 What kind of social changes are occurring in the
target market that would affect service success?
 Which changes are trends and which are new
models of living?
 Are social changes becoming more sympathetic to
the country of service origin?
 Will the service be left in the dust due to changing
social taste or will it harness the next wave?

13. SUPPLIERS
 How many potential suppliers do have currently compiled
for the service?
 How strong is supply chain
(fiscally, historically, logistics, ability to meet future
demand, etc,.)?
 Are there any suppliers closer to target market who can
provide the same quality but cut down on transportation /
logistics overhead?

14. DEMOGRAPHICS
 Do the demographics in target market facilitate a
growing market potential or a declining one?
 What is the adoption rate of the current
demographics for the service?
 What barriers exist in introducing the
service, creating hurdles to be cleared?
 What needs will the service solve?

15. GOVERNMENT POLICIES
 Who are the key policy makers for the niche which
affects the service?
 Does home government have any special
regulations involving trade with the target country? If
so, what?
 Are there any policies under development currently
that would affect the market entry?
 What kind of relationship does home country
embassy trade consulate have with target market
policy makers? Of how much help can your
consulate be?

16. ECONOMIC CONDITIONS
 What is the current trade volume of the target
market?
 What is the Gross National Product (GNP)?
 How does the currency difference affect the venture?
 What are the spending patterns of the target end
user in this market?
 Will your service bring value to the economic
conditions? If so, how?

17. WORLD SITUATION
 What is happening with the target market on the
stage of world politics and economics?
 Is it or a neighboring country hosting the Olympics
soon? If so, how would this affect the company
entry?
 Is there civil war in a neighboring nation? If so, what
kind of threat does this pose to the company
sustainability?
 Is the target market under international
investigation/pressure for alleged support of
subversive activity?

18. TECHNOLOGY
 What is the level of sophistication of the target market as
a whole?
 How does the historical data on adoption of new
technology/service affect the company entry and
sustainability?
 What are the current technology needs of the target
market and does the service meet them?
 What are the anticipated future technology needs and
how will this affect company sustainability?

19. CONCLUSION
India is a perfect market for Zipcar
In 2012, EMBARQ, the WRI Center for Sustainable
Transport, has been researching the feasibility of “car
sharing in developing countries” a project sponsored by
Volkswagen.
The team recently conducted focus groups with potential and
existing car sharing users in Hangzhou, China and
Bangalore (India).
A final report summarizing the findings will be published soon.