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Successful Management by Zipcar
Question 2
Car ownership in the United States is a costly affair hence Zipcar enables people to have temporary possession of vehicles. The attraction stirs interest amongst the population, especially the youth who struggle to raise incomes. The reservation model employed by this company is also attractive because it enables users to use the car only when one needs it. As such, this service offers convenience for a majority of people because it is a reliable source of transportation. In fact, the ease of making such reservations is beneficial to the corporation’s success because one can do so even within minutes of needing the car. The firm also commits itself to conducting maintenance and repair work on its fleet of automobiles thereby reducing the financial load/expenditure for the drivers. While some of the fixes are done by a few drivers, a refund mechanism is available as well. It is, therefore, wonderful to potential customers especially since current vehicle maintenance fees are high. This is a way of reducing the financial liabilities of the clients, much to their delight. Its online presence is also advantageous because people can access its services from anywhere in the country. In fact, Zipcar’s physical location in over 41 cities is a complementary factor that makes it accessible to as many people as possible. The offering of 125 free miles for every reservation is also an incentive for customers, which makes this service popular. The approach aids their movement without having to feel the pressure of payment. Allowing the making of reservations by even a year in advance is a helpful way of assisting clients to make travel plans and save for the same.
Question 3
Zipcar requires that all customers return the vehicles to its designated parking spots after the end of their reservation as a way of ensuring that it keeps track of such automobiles. It is also a strategy for monitoring the movements of the drivers so that they do not arbitrarily extend their duration of hiring the vehicles. It insists on online contact with its clients as well, and this serves to create an electronic record of their contracts for easier perusal when the need arises. For example, during lawsuits, such information will be vital. As such, it acts as a reminder to the drivers that their commitment is recorded, thus reinforcing their responsibility to honor them. Carelessness is also checked by ensuring that potential customers use their Zipcards to unlock the cars thereby making it mandatory for them to keep such tools safe. Reckless driving is also limited by the inclusion of insurance fees in the charges and outlining of accident/breakdown protocols for them to follow. Such an approach enables the firm to deter irresponsible drivers from using its services since such clients are informed that they will bear liability for their actions. The transfer of parking and toll fees to the customers is also another behavioral management mechanism, which ensures that these people are time conscious thereby avoiding unnecessary delays that could hamper the reservation by another driver. Such mechanisms intend to make customers safe and prompt drivers as a way of preventing the damage to Zipcar’s fleet of vehicles while also ensuring the seamless flow of its operations. As such, they enforce its code of conduct amongst its clientele without appearing too controlling.