Business Models and Planning Essay Example | Topics and Well Written Essays - 500 words - 1

Business Models and Planning - Essay Example Of course, this meant that the market was viable. With about 99.99% of the market untapped, there was a great business opportunity for Chase and partner. More drivers would soon need the services so that business idea was highly viable, and there would be great returns (Hart et al., 2005). The main competitors were Swiss Mobility CarSharing-it had 1400 cars at the moment-and Stadtauto. The latter had only 300 cars. The former had a membership of 30,000 people, and operated in some 700 locations and was mostly concentrated in expanding in Switzerland. Drive Stadtauto had about 7,500 members and did operate in 110 locations. Other competitors were only potential in that they had not already set shop. They included CommunAuto, Car-Sharing Inc. and FlexCar. To differentiate it, Chase and partner focused on cost effectiveness and convenience when other companies focused more on environmental impact. They priced their services relatively cheaper and had diverse products when other competitors concentrated on just one or two products (Hart et al., 2005). Chase and partner used a catchy name-Zipcar. The name communicated their intention so that customers readily related to their services and the core rationale behind their idea; which was basically to share ownership of cars at individual convenience. They employed low-budget advertising techniques. For instance, they got 40% of their customers through word of mouth and referrals where already registered members referred others. Public relations also came in handy for them since they got 25% of their customers through this tactic. They also employed guerrilla grassroots efforts of marketing. Members advertised the services even without knowing they did through well-crafted logos that conveyed environment conservation (Hart et al., 2005). Chase ensured that communication was passed through the websites. She emphasized on quality, convenience, low costs and the