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SWOT analysis - Case Study Example

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Summary
Basically, strategy formulation builds on SWOT analysis in order to utilize strengths of the organization so as to be in a position to capitalise…
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SWOT analysis
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A SWOT analysis is concerned with identifying a firms internal strengths and weaknesses and their external opportunities and threats. Basically, strategy formulation builds on SWOT analysis in order to utilize strengths of the organization so as to be in a position to capitalise of the opportunities while counteracting threats and alleviating internal weaknesses (Manning, Salter &Tuinzing, 2005). As such, this paper seeks to carry a SWOT analysis for Zipcar from the case attached.
Opportunities
Car ownership for students and other people alike is not worth the expense and this is an opportunity for Zipcar
Rental age restrictions by other car rental agencies also provide an opportunity for Zipcar which has an age threshold of 18 years
Other organizations are preferring to use car sharing as a way of cutting costs and this is an opportunity for Zipcar
The company can capitalise on using social media to reach a wide range of customers from different areas.
Threats
The car sharing industry is capital and resource intensive
It requires constant modification and improvement due to its lifecycle stages
Fleet operation is costly as a result of rising gas and oil prices which threaten the viability of the company.
This industry is also characterised by competition given that there are numerous car rental agencies offering the same services to different customers
Strengths
The company is a renowned brand name that is synonymous with car sharing and sustainability.
The company also has a culture of innovative service and it is customer oriented. It offers 24/7 services to the customers and its services are designed to satisfy the needs and interests of the targeted customers.
The company is also comprised of skilled and experienced leaders who can successfully steer it towards growth and development. The company capitalises on entrepreneurial leadership styles of its leaders who are capable of anticipating changes that may take place in the environment in which it is operating.
The other strength of the company is that it has a flat organisational structure that helps it to promote efficient communication among the stakeholders. This helps it to remain flexible and reliable in the services it offers to different customers.
The other strength of the company is that it uses low cost word of mouth marketing.
Weaknesses
The major notable weakness of Zipcar is that it does not have its own parking spaces and it relies on both private and public parking spaces.

A close analysis of the case study of Zipcar shows that it has more strengths and opportunities compared to threats and weaknesses. This gives the company a competitive advantage since it has more chances for growth and development.
Works cited
Donal Manning, James E. Salter & Andre Tuinzing, ‘Virgin Atlantic case study,’ 2005,
Dominican University of California
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