Porter’s Five Forces of Competitive Position for Zipcar

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Porter’s Five Forces of Competitive Position for Zipcar
Porter’s five forces analysis is supposed to provide a very simple perspective for assessing and analyzing the competitive strength and position of a company, in this case Zipcar namely. The analysis can be outlined as follows.
The competitive rivalry force for Zipcar is moderate to strong. The major competition is faced from other rental agencies that provide similar services. Nevertheless, the company has a competitive advantage over its competitors due to the flexibility of the service it provides to its customers. Other competitors for Zipcar include transportation services providers such as taxi cabs and public transportation. Nevertheless, the advantage of Zipcar over this competitor segment lies within availability virtually in any location in a dense area as well as relative cheapness of the service if a travel to long distance is required, which would add to the customer cost if a taxi, for example, was chosen.
Supplier power in the competitive position for Zipcar is evaluated to be as moderate. The company provides the car rental services with its own cars, which provides for no delays in car availability from third parties. Furthermore, the company supports strong connections with petrol stations as well as technical services that guarantee in time fuel supply as well as car repairs when needed.
Buyer power in the competitive position of Zipcar is strong. Buyers may easily choose between other car rental services. Thus, whenever potential buyer feels that his/her needs won’t be satisfy, he/she can easily switch to competitors.
Power of new market entrants is evaluated to be strong due to attractiveness of the potential returns to new market players. Zipcar Company showed substantial growth of its business from $13.7 million in revenues in 2005 to the…...

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