Zipcar is an innovative rental car service company –their innovation must exploit hourly car-renter-needs with unique some IT activities such as RFID, GPS, Apps, and Wireless technology.
Zipcar’s strategy with its unique IT activities, including Zipstars or Ziptrips that are social networking technologies, must create more customer values and its creation should be sustainable Zipcar's growth. Also, details are following answers of Discussion Questions;
1. Threat of new entrants –are hard to replicate those unique IT activities because they already have been obtained repositories about personal ...view middle of the document...
Industrial competitors –Zipcar has clearly difference between their original hourly rental car service and traditional daily rental car service.
2. Their business strategy, hourly rental car service, has been sustained sophisticating IT, for instance, RFID key system probably decrease a waste of time when standing in line or filling out papers to rent a car –hourly renters must emphasize those time naturally because their needs focus on hour importance; do not focus on daily importance.
3. Zipsters or Ziptrips, social networking technologies that are part of the strategy would be able to define as network effects. Through Zipsters or Ziptrips, each user may communicate how to use Zipcar effectively, and those communication would generate original value from customer self.
4. Traditional rental car service, such as Hertz or Avis, may pursue Zipcar for a new business opportunity because they are easily able to anticipate a decrease in their profits. I probably look for a direction of strategic alliance or partnerships with those followers complementary because Zipcar possesses a good IT management, however, those followers must possess repositories, such as many cars, spots to rent, and loyal customers. Jointing with each other’s strengths that is strategic alliance should be one of solutions to sustain a competitive advantage.