Topic > SWOT Analysis of Zipcar - 761

Zipcar is influenced by its internal strengths and weaknesses compared to competitors and is presented with opportunities and threats from its macro environment. By understanding these various factors, an organization can successfully thrive in the overall business environment. The following analysis of Keegan's article "The Best New Idea in Business" provides a SWOT analysis of Zipcar, which illustrates the factors influencing the company's rapid growth. A company's internal strengths refer to positive factors relative to competitors within an industry. Zipcar has internal strengths in having superior customer response, ease of transactions, and hosting memorable marketing events. The derivation of Zipcar's individual strengths is based on how this organization adds value to the market better than its rivals. Customer response is improved through measurable aspects such as minimizing traffic congestion, lower carbon dioxide emissions and reduced operating costs. A single use of a shared vehicle, like Zipcar's, "...takes up to 20 cars off the road as members sell their rides or decide not to buy new ones." (Keegan, 2009) Budget savings and green initiatives are significant deciding factors for members. "(Drivers) who give up their cars and switch to Zipcar say they save an average of $600 a month... and surveys in Europe show CO2 emissions are reduced by up to 50% per user." (Keegan, 2009) Contrary to the traditional rental transaction, where customers stand in line, pay multiple fees or commissions, and fill out lengthy documents to be used on a day-to-day or week-by-week basis; The Company offers simpler transactions that differentiate its services and build customer loyalty. Zip......half of paper......z is able to "... obtain volume discounts on cars, mobilize its huge fleet and customer service call centers, invest heavily in each city and absorb losses if it wants to start a price war”. (Keegan, 2009) Provided that the company is able to successfully focus on its differentiating strengths in adding value to the customer experience and can exploit with success opportunities in the global market by focusing on a broader demographic of potential customers, Zipcar may be able to successfully address potential threats from new competitors in the car sharing industry and overcome its weaknesses resulting from technology gaps and limited product offerings, Zipcar possesses the momentum to keep moving forward. Works Cited Keegan, P. (2009, September 14). Fortuna, 160(5), p. 42.