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.