Economic Performance of Zip Car-Free-Samples-Myassignmenthelp.com

Question: What are the key drivers of Zipcar's Economic Performance? Answer: There are various drivers, which led the growth of Zip car in terms of their economic performance. One of the key drivers is the inclination of the preference pattern of the customers towards the online service portal. This helped them due to the reason that, Zip car initiated the process of introduction of online portal for their customers to book the cars online. Thus, this caused enhancement of the convenience of the customers, which further attracted them. Moreover, the introduction of latest safety software by Zip car such as installing of black box in car also helped to increase the satisfaction level of the customers (Della-Giustina). Another key economic drivers of is their strategy of rapidly expanding in markets other than Boston. They have rapidly expanded their business in 14 other cities, which helped them to enhance their brand value in the market. Thus, due to their enhancement of their brand value in the market, they are able to attract more investor for funding with having more customer base (Guerriero and Olivito). This factor motivated them to change their business model to enter in different market, rather than operating in a single market. Moreover, having effective management team and determining the market requirement effectively also helped them to enhance their economic performance. This is due to the fact that, Zip car have effectively identified the market requirement, which according to the case study given are having the need of rented car service. According to the reports, there are various probable customers who are in the need of a car but cannot afford it. On the other hand, several customers can afford it but they will need a car for occasional use. Hence, in this scenario, Zip car came up with the business plan of offering cars to the customers in rent for a specific time (Sundararajan). Thus, it provided the customers to have opportunity of having the car at the time of requirement along with not having the need to have their own. Thus, providing the car renting service to them helped Zip car to penetrate the market effectively and in less time. The rapid increase in this type of customers in the market motivated Chase to initiate the policy of entering in other market also. Another factor that has potential impact on the economic performance of Zip car is the environmental factors. According to the data being gathered by Chase, car renting service will also help to reduce the private cars from road in significant number. This is due to the reason that, the more cars will be offered in rent, the less people will go for new cars. Thus, the environmental impact will be less. Thus, with people preferring environmental friendly activities, the economic performance will be positive in future also. These all factors helped Zip car to enhance their economic performance along with changing the business model accordingly. In addition, all these factors also helped them to gain more capital from the potential investors. References Della-Giustina, Daniel E.Motor fleet safety and security management. CRC Press, 2012. Guerriero, Francesca, and Filomena Olivito. "Revenue models and policies for the car rental industry."Journal of Mathematical Modelling and Algorithms in Operations Research13.3 (2014): 247-282. Guerriero, Francesca, and Filomena Olivito. "Revenue models and policies for the car rental industry."Journal of Mathematical Modelling and Algorithms in Operations Research13.3 (2014): 247-282. Sundararajan, Arun. "From Zipcar to the sharing economy."Harvard Business Review1 (2013)