SWOT Analysis of Zipcar

This article covers the internal and external analysis of Whole Foods Market and the technique used for it is know as SWOT analysis. The purpose of SWOT analysis factors are categorize as :

Strengths

• Zipcar ‘s biggest strength lies in its customer friendly and disruptive business model which makes it unique from its competitors.

• The company provides its customers the highest accessibility as possible by making it available where people live or work.

• The company gives the customers the flexibility to use their company’s cars whenever required.

• The company has the first mover advantage. Zipcar was the first company who introduced the concept of car sharing in the United States as a systematic multi-city business model. The company allows its member to get a car without any need of interacting with a front office.

• Zipcar has been known as the market leader for the Net Promoter Score. The company has maintained its competitive advantage by keeping a high level of NPS.

• The company is well updated with the latest market trend and consumer’s preferences. Zipcar has been consistent with the general market trend by promoting environmental friendly transportation solutions.

• The company has maintained its membership over time even after increasing its annual membership fee; Zipcar has always managed to retain its loyal customers.

Weaknesses

• The company faces the greatest challenge of creating a high level of initial costs besides dealing with the customer’s complaints of car unavailability often times. However, the company can leverage itself by expanding its market leadership with car manufacturers in order to secure better deals of procurement i.e. partnership with the Ford company for its Student Drive Campaigns.

• The membership of the company is based on the seasonal usage i.e. longer weekend trips, travelling for work/school etc.

• Each time when the company plans to enter a new market, it also has to make a huge upfront investment in vehicles. As the company expands its business in the cities like London and Barcelona which can lead to a heavy expenditure overall.

Opportunities