Strategic IT Management: Zipcar's Competitive Advantages Analysis

This case study examines Zipcar's strategic IT management, competitive advantages, and business model. The analysis delves into how Zipcar utilizes IT to gain and sustain its competitive edge, highlighting the minimal interaction between the company and its customers facilitated by RFID-enabled Zipcards and a color-coded time chart. The study explores the synergy between Zipcar's business strategies and information technology, emphasizing the role of GPS devices, social networking, and mobile applications. Furthermore, it analyzes the network effects that contribute to Zipcar's popularity, such as mobile booking and text alerts. The case study also identifies the most threatening competition faced by Zipcar and suggests strategies for maintaining a competitive position within the car-sharing and rental market.

Running head: STRATEGIC IT MANAGEMENT
Zipcar Case Study
Name of the Student
Name of the University
Author’s Note:

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STRATEGIC IT MANAGEMENT
Table of Contents
Question 1..................................................................................................................................2
Question 2..................................................................................................................................2
Question 3..................................................................................................................................3
Question 4..................................................................................................................................3
References..................................................................................................................................4

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Question 1
Zipcar’s Business Model for Gaining Competitive Advantages
The business model or the business operations of Zipcar help them to gain and sustain
competitive advantages. The most amazing business operation or information resource in the
Zipcar is almost no interaction is needed within Zipcar and client (Sundararajan 2013). RFID
enabled Zipcard is used for entering into the car. Moreover, there is a colour coded time chart
that shows the location of the cars and this allows the customer to check the availability and
delay of their cars. Furthermore, a wireless device is present in every car that can be utilized
for reservations. The IT platform of the car helps in monitoring the security of the car. These
information resources help the company to gain as well sustain the competitive advantages
(Kell 2013). Since, they the customers do not have to stand in line or fill out any paper for
renting cars; it is well accepted by all customers in comparison to others.
Question 2
Synergy between Zipcar Business Strategy and Information Technology
There is a strong synergy between the business strategies of Zipcar and Information
Technology. Each and every strategy of the company is solely dependent on IT as they helps
to bring business innovation within the strategies (Xiang, Magnini and Fesenmaier 2015).
The car has an installed GPS device within it that helps to track the location of the car and a
platform that relays important technical information like fuel level or battery voltage.
Moreover, they utilize social networking technologies for developing an online community
for the members of Zipcar. Thus, information technology plays the most significant role n the
business strategies of Zipcar.

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Question 3
Network Effects
The network effects of Zipcar mainly include enabling the members to find as well
reserve cars by utilizing their cell phones. Moreover, they can use their Android application
or iPhone application for booking cars on 24*7 basis (Sundararajan 2013). Text alerts are
sent to the customers once their rental time is completed. If the customer wants they can
extend their time by texting back. The other network effects are the monitoring of car
security, recording hourly usage, fulfilling reservations and maintaining mileage information
by an IT platform.
These network effects help the company to gain competitive advantages and
popularity amongst customers as they do not have to stand in line and wait for their number
to book a rental car (Schwalbe 2015).
Question 4
Most Threatening Competition
As per the CEO of Zipcar, the most threatening competition of this company would
be the cab services. These cab services have started providing rental cars just with one click
on the mobile. Apart from rental cars, they also provide normal services to their customers
(Kell 2013). Therefore, they are the most threatening competition to Zipcar.
This can be removed when Zipcar would also start providing normal cab services.
Apart from rental cars, they will also provide cars for short time. This would help to sustain
the competition.

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References
Kell, J., 2013. Avis to buy car-sharing service Zipcar. Wall Street Journal, (January 2).
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Sundararajan, A., 2013. From Zipcar to the sharing economy. Harvard Business Review, 1.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal of
Retailing and Consumer Services, 22, pp.244-249.