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Date Submitted: 09/15/2011 12:06 AM

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1. After Zipcar had merge with their main competitor Flexcar in year 2007, Zipcar has become the current US leader in car rental service. However, the merger came about in part because neither company was turning a profit, and in part due to increased competition from traditional rental-car companies like Hertz and Enterprise, which are threatening to chip away at carsharing's customer base. Hertz is the largest international car rental car company. Hertz is even offering standalone cars at different locations around Manhattan, a service that's virtually indistinguishable from carsharing. Hertz, as the largest international rental car company, has entered the car sharing market by launching the ‘’Connect by Hertz’’ car sharing club. Membership in Connect by Hertz includes insurance, fuel, roadside assistance, maintenance and cleaning. Connect by Hertz members enjoy a paperless program where they can reserve, drive and return vehicles all on their own, via the internet or phone. Connect by Hertz supports Hertz’s diversified business model by providing best-in-class transportation solutions across the spectrum of customer needs. Connect by Hertz cars can save members thousands of dollars a year in vehicle ownership costs and, by leveraging Hertz’s established infrastructure. As the CEO of Zipcar, I would think that listening to the customer is a start, monitoring the company’s competitive advantage constantly and regularly to ensure the company able to provide customer an excellent service and experience by offer them a reasonable price which attract the client who looking for rock-bottom price. Besides that, Zipcar should being keen to the subtlest changes in the organization, management, operation market condition, customer needs, government regulations, competitors and their strategies and other external factors that directly or indirectly affect the organization.