Zipcars Business Motivational Model for Customers and Partners - Case Study Example

By introducing the Zipcars, the company helps the customers to save up to seventy per cent of their savings because they only pay for the hours they use the cars. Additionally, the cars are energy efficient and contribute less to the discharge of exhaust fumes into the environment. This motivates customers further. As a means of further motivating customer, the company has collaborated with several other organizations, businesses, and universities through some specific programs. As a way of reducing costs for businesses, Zipcar rents vehicles to them to use during the week when they are needed most.

The same thing happens with universities as well. These services motivate the organizations to work harder with the mindset of cutting down on costs. It also aids cities in saving on their parking space. On a scale of 1 to 5, I will give the business a motivation of four while 3 to the universities. The cities’ motivation could be 2.5. 2. As Its Simplest Best The idea behind Zipcar is to help businesses cut down on the costs of running their businesses. Apparently, most business organizations incur huge costs in keeping and maintaining their motor vehicles.

The same applies to universities and colleges that face the danger of vehicle wreckages and damages due to student’s responsibilities. Additionally, with as much as $ 1 million going into savings from the Zipcar system, the cities are worth adopting the strategy. With these concepts in mind, potential beneficiaries of Zipcar’s services would be easily convinced to adopt the services of the firm. 3. Figure 6.3 Zipcar’s business model involves the four simple steps. These are “joining, reserve, unlock, and drive.

” In this model, the firm urges its clients to join it through registering as members. The organization has 500,000 members with cards. A person pays a fee of $25 to join. In the reserve, one retains membership with the firm. The person pays an annual membership fee of $50 to reserve his or her place to restore the membership card. The membership card allows the client to unlock the potentials that come with the company. Then the customer drives away with the car 4. Zipcar’s Rapid Growth and Strength Zipcar is growing at an express rate.

This is because ten years after its formation, it was able to offer a whooping 8000 vehicles across the urban areas of Canada, North America, and London. Additionally, the firm has also expanded its operations and penetrated deep into the market by collaborating with other business enterprises to cut down their operating costs and increase the profit margins for the firm. However, the firm has an excellent operational model. Its cars are energy efficient. Nevertheless, by collaborating with several business enterprises, the firm will be forced to use heavy trucks in some cases.

Apparently, heavy trucks are key contributors of carbon dioxide emission into the atmosphere. This will jeopardize Zipcar’s strength of ensuring environmental sustainability. Discussion Questions of Case 4.2 The compelling reason for the successful business plan competition is the strong vision. This is partially attributable to the kind of approach it used in presenting its ideas to the audience. Although it is a business enterprise driven by the need to make profit, it puts emphasis on its humanitarian assistance mission across the disadvantaged populations in the developing world.

Apparently, most people are touched by the deplorable conditions that some populations of the world go through. The marketing strategy for D.Light would involve demonstrations to potential clients. As a cofounder, I will seek the approval of the governments of these countries with downtrodden populations and offer some samples to the