Based on the business opportunity evaluation criteria, there are several key indicators that show that Zipcar is indeed a high potential enterprise. Below are the criteria in brief1.0 Industry and MarketMarket: The revolutionary concept definitely provides an alternative to public transport. Furthermore, the concept of car sharing is really useful for the public in an overcrowded city with limited parking and expensive fares. This is clearly not a pristine segment because 2 other competitors operate. • Customer: Target customers are educated and internet savvy people living in cities. • Benefits for the user: non-car owners will have the service available to them whenever they request it via web booking. • Added value: all invoices are made online without problems. Users have access to usage data. The system is fully automated with wireless data sending and receiving. • Product lifespan: The product will have a long lifespan as the annual market growth is expected to be 30%. 1.1 Market structure As I have already said, the market is not completely untapped, but other competitors are, concentrating in the metropolitan area. The entire US market is still available to venture.1.2 Market SizeThe potential market size is huge, as expected, in 14 metropolitan cities it would amount to USD 200 million.1.3 Growth RateThe annual growth rate is expected to be 30%. 1.4 Market CapacityIt is at its maximum capacity, as only Portland and Seattle have similar services. 1.4 Achievable market share (year 5) Capable of capturing 13.8% of the market share. It is not a market leader, but with continued development and commitment it has the potential to become one. 1.5 Cost Structure ZipCar is a low-cost provider. But......middle of the document......Final criteria6.1 Objectives and suitabilityFounders have potential success with moderate risk. The founders are also very passionate about their idea.6.2 Positive/Negative IssuesThe founders of ZipCar have invested their own money in the venture and have been seen taking pay cuts.6.3 DesirabilityThe founders thrive under pressure by working hard to locate funding for ZipCar. 7.0 Strategic differentiation7. 1 Degree of adaptationThe enterprise has a revolutionary service concept that serves the purpose and needs of the customer.7.2 TeamThe founders have good fundamentals in finance and management.7.3 Service management7.4 Timing7.5 Technology7.6 Flexibility7.7 Service orientation opportunities7.8 Prices7. 9 Distribution Channels7.10 Room for ErrorsConclusionBased on the criteria discussed above, ZipCar is a high potential business with good returns.
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