Module 5 – Case
INTERNATIONAL MARKET SELECTION AND MARKET ENTRY
Zipcar is a highly successful new company specializing in a brand-new model for automobile rental services, allowing their customers long-term and flexible access to shared vehicles on a daily or hourly basis. Zipcar’s innovative model allows those who sign up for their membership services to share cars with other members on a flexible basis, creating a cost effective alternative to car ownership. Since its founding in 2000, it has grown to become a major player in the U.S. automobile rental market and has expanded internationally to Canada, the U.K., Spain, and Austria, and offers rental services to almost 1 million customers.
Read the following two articles and do some of your own additional research on Zipcar:
Zipcar expands in Sacramento becoming 26th major metro market: Based on strong demand, Zipcar increases number of vehicles, will open office (Nov. 6, 2013) PR Newswire (available on ProQuest)
Esswein, P. M. (July, 2011). Zipcar: Robin Chase. Kiplinger’s Personal Finance, 65, 1 (available on ProQuest)
Zipcar, Inc.; Zipcar acquires leading car sharing service in Austria, CarSharing.at. (July 25, 2012).Mergers & Acquisitions Week , 196. (available on ProQuest)
Now suppose you have been hired by Zipcar to come up with an international strategic plan. Write a 4- to 5-page strategic plan for Zipcar that addresses the following issues:
What country or countries should Zipcar enter next beyond the five countries they already operate in? Explain your reasoning for this selection based on criteria from the background materials.
What mode of entry should Zipcar use to enter the country or countries that you chose? For example, should it use a joint venture, franchising, a greenfield strategy, something else?
Answer the assignment questions directly.
Stay focused on the precise assignment questions; don’t go off on tangents or devote a lot of space to general background materials.