THE INTERNATIONAL STRATEGIC PLAN FOR ZIPCAR COMPANY

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Zipcar is a company specializing in automobile rental services. It allows access to it services to the customers in either long-term or short-term basis depending on the client’s desire and over the... laid down term and conditions. Zipcar creates an alternative that is affordable to the customers as it provides an opportunity for them to share vehicles on hourly or daily basis hence a sense of car ownership to the client. The company dates back in the year 2000, and its growth is noticeable to almost the whole world although its services mainly extend to the five member countries. The members include U.S., Spain, U.K., Canada, and Australia. The automobile rental services provider shows a bright future for the expansion and international spread the services provided by Zipcar. Therefore, a global strategic plan is put down to set the pace for the objectives achievability (Great Britain, 2010). The Zipcar Company has the focus to extend its services to some countries in the next few years by establishing serving branches in other potential regions and nations. Therefore, it provides a plan to achieve the goal whereby countries and cities in a different part of the world have a high potential of embracing the company’s services. Such countries, where the Zipcar Company should put its interest in, are Hong Kong, Singapore, India, Turkey, and some major cities like Tokyo or Taipei. These are suitable targets for the services offered by the company as they exhibit a density of high population as well as metropolitan areas where cycling, public transit, and walking options that are viable for transportation. More so, car ownership that is of high cost has led to the high pressure of parking in both space and cost. This as well makes these countries suitable for Zipcar’s company to enlarge its business overseas that is similar to that of London. The residents of these places rarely do they require cars to their workplaces or their daily movements and activities. Thus, ownership rates of vehicles are usually small, and this makes a prediction of the viability of the economy sharing programs of the cars. Residents in those cities usually do not need cars to go to workplaces or go to their day-to-day efforts. Thus, low car ownership rates are one of the best predictors of the economic viability of car sharing programs. It can consider strategies of cooperation by partnering locally for the operation of a fleet of vehicles utilizing the management systems that share cars. Formation of alliance avoids the high cost of the investor (Zipcar Company) because the resources are usually shareable in accordance to the risk. When Zipcar forms an alliance, it will create economies of joint whose scope lies between partnering firms (Esswein, 2011). More so, as the company tries to engage in related services, its members will frequently test the electric cars for designing of the cars, particularly for the market sharing. Consequently, through close working with other firms and authorities, it can gain benefits from them helping the company to expand at a high rate. Besides, other related services like taxis, and rides may lead the group to rising in the market due to diversification. Therefore, an integrated full package created by Zipcar assists in the options for mobility just like in their home countries. The countries that Zipcar should concentrate on areas listed above that have the potential for growth of the economy. They still have significant and dynamic growth digitally, and this gives a chance for the firm to take advantage of these benefits. The countries and cities mentioned have got political stability and, therefore, motivating the company to invest there since there is little or no predictable risk. Improved and growing technology is another reason for the establishment of rental services in the selected nation and cities. The operation of the firm depends on the level of technology. That is wireless, and since the targeted countries have established technology, it is advisable for Zipcar to use the opportunity (Eisen & Bloomberg News, 2013). The Zipcar Company should embark on Joint venture as a strategy for market entry. It involves two or more companies e.g. Zipcar and another one in a foreign nation sharing both ownership, and control over the property operation and rights. The parent firm (Zipcar) will enjoy several benefits such as, will not pay taxes to foreigners because they are working on the local enterprise. Mores so, they can avoid taxes, risk sharing, the source of supply for a third party, being the only means and many more. The benefits supersede the disadvantages like lack of full control by the partners, disagreements, different views between partners among others. Since this particular firm has the outstanding technology, it will ease the operation of the business even when the partners are at a distance. Zipcar should merge or buy the smaller operators that have the presence or operates in, the smaller countries or cities aspiring to establish their rental services (Markman & Phan, 2011). Another option is that it can deploy its fleet of those nations because it uses its technology in wireless in streamlining its operations. The cost of increasing in those states is likely to be less. However, there should be enough number of the users within the particular convenient cycling or walking distance. This is regarding the parking with considerable travel alternatives. For instance, having three car-share vehicles in a neighborhood having ten members in each particular vehicle requires not less than thirty households of members under the coverage of one square mile. Therefore, if there is neighborhood having a high density as well as outstanding public transit services, the company should take the advantage. It should present itself in such areas in order enjoy the larger economy of scale with minimum or no risks. The firm (Zipcar) has a future of product differentiation. It will enjoy the joint venture where it gets a company that is operating on related services such petrol stations, motor-vehicle repair among others. It ensures that their product services get advertised as well and hence boosting the business to pick up in the market. The latter shall as well benefit from the pre-existing of the enterprise to merge with since there is already an existing market that reduces time to access and penetrate the target market. The Zip will also overcome barriers to entry such as technology, material supply, skills restrictions, and patents. When the company fully creates rapport with the [Show More]

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