Italia & zip car - Entering a new market

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2012 International Business coursework

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Italia & zip car - Entering a new market

  1. 1. Italia & ZipCar 1 1
  2. 2. Why Italy? Framework2 • Increased Taxes • Increased Oil prices Expensive Car Ownership • Bike Sharing Success • Government plan: 16,000 customers, 500 cars Sharing Culture • Public Transportation • Need for cars occasionally Convenience for Customers
  3. 3. Is there a Market for Zipcar? Market Analysis Italia & Zipcar 3 Competition Carpooling Rental Fragmented Government plan not as convenient Threats of new entrants is relatively low Potential Clients Rarely need car/second car Use Bike/Public Transportation Short Trips Environmentally Conscious Students studying away from home Appeal of Product Cheaper Exceptions to environment regulation Convenient Choices Growth & Size 12% growth in cars, 15% in users 17% people with license don’t have cars 44% don’t have parking space 2.8% of population are potential clients Market Revenue: potential ~ $155M
  4. 4. Which strategy? Strategies to Enter4 Joint Venture • Most attractive partner: Mobility • Too much risk, not enough reward • Different business model Merger & Acquisition • Nobody to merge with • Can’t buy government owned car sharing Fully Owned Greenfield • Capture market share • First movers advantage • Consistent with Strategy • High Costs: careful planning of financing decision
  5. 5. What problems could we face? Feasibility Italia & Zipcar 5 •  Online Infrastructure •  Smartphones Technology •  Strict regulations on emissions that increase costs Regulation •  70% doesn’t know what car sharing isOther Problems High speed internet widely available, 28% of Italians have a Smartphone Government willing to fund up to 15% Marketing campaign
  6. 6. What do we need to do? Recommendation Italia & Zipcar 6 Financing Focus on high population density areas Partnership with Auto makers Partnerships with Universities
  7. 7. Q&A and appendix Grazie per l’Attenzione 7
  8. 8. Car Sharing costumers in Italy June 25, 20148 Turin Rome Parma Palermo
  9. 9. Competition: car sharing services in Italy June 25, 20149 City Fists year of operation Type of company Milan 2006 Public Bologna 2005 Public Venezia 2002 Public Torino 2003 Public and private Modena 2005 Public Genova 2004 Public and private Roma 2006 Public Parma 2007 Public
  10. 10. June 25, 201410 Competition: car sharing services in Europe State Start Users Population users%
  11. 11. What will the price of the service be? June 25, 201411 Company Annual Fee (€) Hourly Rate (average in €) Km rate (average in €) Mobility (CH) 174 1.0 0.20 Communauto (Turin) 25 1.3 0.15 Car City Club 179 1.25 0.3 Zipcar Barcelona 45 6 20 free km Zipcar London 75 5 50 free km
  12. 12. Bibliography ›  “Car sharing: an international Analysis”; Italian Ministry of transportation ›  “Car sharing: Business and Market”; Burlando, Arduino, Nobile ›  “Car Sharing”; Opera research group ›  “Sustainability: Zipcar IPO”; greenbiz.it ›  “A conversation with Zipcar CEO”; Kilcrease ›  “Zipcar buys Avencar”; abc.es ›  Zipcar.com June 25, 201412

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