October 2, 2009

Analyze Case: Why Zipcar Business Success

Zipcar is one example of a company reach success in the New Wave era. Based on observations that wrote by Marketing Expert Indonesia, Hermawan Kartajaya in www.kompas.com, the case reminds us that maybe there are two key words to win the competition in the New Wave era, the connector and community.

They are connecting through the hub provided a platform for the community, so as to appear more attractive in the competition. Plus the ability of this company make customer community. But whether this is enough bring Zipcar becoming successful? There are three things that make Zipcar success.

  • First, there is on the pricing model that gives benefits to Zipcar member ; (1) fixed costs at the time a member of: the annual cost of about $ 50 plus $ 25 for the application and (2) variable costs while driving: that is about $ 10 per hour (depending on the model of car chosen). All of which already includes gasoline and insurance.
  • Second, the low-cost strategy. Can be seen that it offered a low-price. But the low price strategy will not be sustainable if not supported by the low-cost strategy. To continue to manage the operational costs is a challenge for them.
    For example, the number of vehicles increases automatically when the company grow so that rents continue to rise. Plus fuel prices go up and down a threat to economic stability of the company. How they handle this is to increase the number of members thus achieving economies of scale is more solid.

    From the operational side, can also be seen that their success is supported by the use of sophisticated IT systems but easy to use. For example, each member has a card called Zipcard. This card is inspired by the ATM cards, certainly not to withdraw money, but to pull the door handle Zipcar vehicle 6000.

    Of course not arbitrary because the members must first make reservations via the Internet, phone or iPhone and Blackberry application. Each car is also equipped with GPS navigation to track down the stolen car.

    One thing that might amaze is their achievement in terms of marketing costs are relatively low at between $ 1,000 to $ 1,500 per month. Marketing strategies that low-budget-high impact research was achieved by 30% to 40% through word-of-mouth, 25% through publicity in the media, and the rest through guerrilla communications made by their marketing team.
  • Third, that can explain the success that is now Zipcar car-sharing company in the world is his marketing orientation tangible community. One thing that raised the company from the business side is ultimately the members, who called Zipsters.

    Zipcar's success in building as a key community liaison and is supported by the company philosophy which is horizontal and entrenched. DNA from early Zipcar seen as a project vehicle ownership creating a convincing alternative to millions of urban communities to abandon their private vehicles to create a green and sustainable planet.

    Thus, it can be seen the company has social mission, not just convenience and enjoyable experience in the members own and use vehicles. Because as explained above, this business requires the right economies of scale.
    (source: www.kompas.com/WTD/MZ)


Share/Save/Bookmark

0 comments:

Commodities News

Bisnis Indonesia Terbaru

Bloomberg On the Economy

  © Blogger templates ProBlogger Template by Ourblogtemplates.com 2008 | Karjat Resorts

Back to TOP