Zipcar Essay

1354 Words3 Pages

Introduction Just think for a minute if all restaurants in the United States were all American. This means no Chinese, Japanese, Thai, Vietnamese, Mexican and so on flavors of foods. The amount of choices would be reduced greatly and honestly; most Americans would probably not eat out as often as we do. Without offering different foods from international businesses, the United States and other countries would struggle financially; and ultimately would lose money daily. International trade has been around since America was founded, while back then it was about trading, spices and weapons in exchange for people, today international trade is more about commodities without exchange for people. According to the World Bank the entire world …show more content…

While exporting is the least amount of risk; there is drawbacks as the company works with agents to get their product to customers. Exporting a product also has the lowest risk in regards to capital investing (Rajagopal, 2009). Choosing the country is just as important as selecting the correct entry strategy. While Zipcar has been successful in the U.S. and other countries, failing to study the market, could cause them to implement their exit strategy very quickly if they choose to expand in the wrong nation. Ultimately, Zipcar needs to market their rental car program in a country where there is very limited amount of parking and in very populated communities within the country, and provide Zipcar with a strong populated market to continue their …show more content…

While Zipcar would need to do their research first, to make sure they were not purchasing an auto rental car company who defrauded their customers, as this type of behavior would be detrimental to Zipcar. However, if there was an auto rental company struggling financially, Zipcar could be their savior and prevent them for bankruptcy. This could be beneficial for Zipcar if the fleet of vehicles were still all in good condition as they could save initial capital costs. Additionally, Zipcar could purchase the different location the rental car company already owns and eliminate the costs associated with construction of different rental locations, while being able to secure wash facilities to detail their cars so their clients are always renting a clean fresh smelling

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