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Essay / Is Zipcar a High Potential Company - 743
Based on the Business Opportunity Evaluation Criteria, there are several key indicators that show that Zipcar is indeed a high potential company. Here are the criteria in brief1.0 Industry & MarketMarket: The revolutionary concept certainly offers an alternative to public transport. Additionally, the concept of carpooling is very useful for the public in a crowded city with limited parking and high parking fees. This is clearly not an spared segment because there are 2 other active competitors. • Customer: Target customers are educated and internet savvy urban dwellers. • Benefits for the user: non-car owners will have the service available to them when they need it by booking. on the Web.• Added value: all billing is done online and hassle-free. 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 mentioned earlier, the market is not completely untapped, but other competitors are. concentrating in the metropolitan area. The entire US market is still available to venture into.1.2 Market SizeThe potential market size is huge, as expected, in 14 metro cities it would be worth $200 million.1.3 Growth RateThe growth rate annual should be 30%.1.4 Market CapacityThis is at full capacity, as only Portland and Seattle offer similar services. 1.4 Achievable market share (year 5) It is capable of capturing 13.8% market share. It is not a market leader, but with continued development and efforts, it has the potential to become a market leader. 1.5 Cost Structure ZipCar is a low cost provider. Ma...... middle of document ......Final criteria6.1 Objectives and suitabilityFounders have potential for success with moderate risk. The founders are also very passionate about their idea.6.2 Positive/Negative Issues The founders of ZipCar have invested their own money in the company and have been seen taking pay cuts.6.3 DesirabilityThe founders thrive under pressure by working hard to find funding for ZipCar.7.0 Strategic differentiation7. 1 Degree of suitability The company has a revolutionary service concept that meets the purpose and needs of customers. 7.2 Team The founders have good fundamental knowledge in finance and management. 9 Distribution channels7.10 Margin of errorConclusionBased on the criteria mentioned above, ZipCar is a high potential company with good returns.