Read the casestudy on zipcar that is attached and answer the following questions.

1.Apply the resource?based view to Zipcar  ’ s business model to show how information resources may be used to gain and sustain competitive advantage.

2.    Discuss the synergy between the business strategy of Zipcar  and information technology.

3.    What  network effects  are part of Zipca r ’ s strategy? How do they add value?

4. A   s the CEO of Zipcar , what is your most threatening competition? What would you do to sustain a competitive advantage?

Zipcar is an answer for customers who want to rent a car for a few hours in their home city rather than
for a few days from a traditional rental agency. Car reservations are for a specifi c pick‐up time and
location around the city, often in neighborhoods so the customers need only to walk to pick up their
reserved car. Customers apply for a Zipcard, which enables them to reserve a car online and unlock their
car when they arrive at its location. T he company operates with a very small staff compared to
traditional rental agencies. Very little human interaction is required between the customer and Zipcar
for a transaction. A customer reserves a car online, enters into the reserved car by waving the RFID‐
enabled Zipcard against the card reader mounted behind the drive r ’ s side windshield, returns the car
to the same location, and is billed on the credit card already on fi le. The customer can check all rental
records and print receipts from the online reservation system. The system also has a color‐coded time
chart showing the availability and location of all rental cars in the vicinity. This transparent information
exchange allows a customer to pick the car he or she wants, if available, or delay the reservation until
that car is returned by another customer. Zipcar also created and installed a GPS‐enabled wireless
device in each car, which allows members to fi nd and reserve a vehicle nearby using a cell phone.
Customers also can use an iPhone or Android app on their iPhone or Android mobile device to fi nd and
reserve a Zipcar on a 24/7 basis. Zipcar sends text alerts near the end of the rental period, and
customers can text back if they want to extend their rental time. A ll cars were outfi tted with patented
wireless technology. Zipcar’ s proprietary IT platform carries information fl ow between customers,
vehicles, and the company. It is used to monitor car security, fulfi ll reservations, record hourly usage,
and maintain mileage information. The platform also relays vital technical information such as battery
voltage and fuel level. It even informs the central system if a customer forgot to turn off headlights,
which can quickly drain battery power. T his business model provides unique advantages over traditional
car rentals. Customers do not have to stand in line or fi ll out papers to rent a car. They know exactly
which make and model they will be getting. Unlike most off‐airport rental agency locations, which are
open only during business hours, Zipcar locations are open 24 hours. The company ’ s rates also include
the cost of gas and insurance as well as reserved parking spots at some locations. Additionally, the
company uses social networking technologies to develop an online community of Zipcar members —
Zipsters. It encourages Zipsters to talk about their Ziptrips (i.e., share their personal experiences with
Zipcar ). T hus, information technology is not only the key enabler of this business model but also a
facilitator in creating a buzz and encouraging community development around the concept. Zipcar
changed the rules of the rental car industry by bringing the new Web 2.0 mind‐set of focusing on
automation, customer empowerment, transparency, and community. Zipcar is very successful; as of
August 2015, its Website boasts over 900,000 paying members and renting over 10,000 vehicles in 30
major metro markets in the United States, Canada, and the United Kingdom, as well as 400 college
campuses and 50 airports