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2 pages/β‰ˆ550 words
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APA
Subject:
Business & Marketing
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Essay
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English (U.S.)
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Topic:

BUS 401 WK 4: Market Selection and Foreign Market Entry Mode

Essay Instructions:

Zipcar is a highly successful new company specializing in a brand new model for automobile rental services, which allows their customers long-term and flexible access to shared vehicles on a daily or hourly basis. Zipcar's innovative model allows those who sign up for their membership services to share cars with other members on a flexible basis, creating a cost effective alternative to car ownership. Since its founding in 2000, it has grown to become a major player in the U.S. automobile rental market and has expanded internationally to Canada, the U.K., Spain, and Austria and offers rental services to almost one million customers.

Before writing your paper, make sure to carefully review the concepts of country selection and evaluation in Venkateswaran (2012) as well as the discussion of advantages and disadvantages of different foreign entry mode decisions in Jeyarathmm (2008) and Rajagopal (2009). Once you have finished reviewing the basic concepts of this module, read the following two articles and do some of your own additional research on Zipcar:

Zipcar expands in Sacramento becoming 26th major metro market: Based on strong demand, Zipcar increases number of vehicles, will open office (Nov. 6, 2013) PR Newswire [Proquest]

Esswein, P. M. (July, 2011). Zipcar: Robin Chase. Kiplinger's Personal Finance, 65, 1 [Proquest]

Zipcar, Inc.; Zipcar acquires leading car sharing service in Austria. CarSharing.at. (July 25, 2012).Mergers & Acquisitions Week, 196. [Proquest]

Now suppose you have been hired by Zipcar to come up with an international strategic plan. Write a 3 page strategic plan for Zipcar that addresses the following issues:

  1. What country or countries should Zipcar enter next beyond the five countries they already operate in? Explain your reasoning for this selection based on criteria from the background materials including Venkateswaran (2012).
  2. What mode of entry should Zipcar use to enter this country or countries that you chose? For example, should they use a joint venture, franchising, a greenfield strategy, etc.? Refer to the concepts from Jeyarathmm (2008) and Rajagopal (2009) in your answer.
Essay Sample Content Preview:

Market Selection and Foreign Market Entry Mode
Student’s Name
Course Title
Professor’s Name
Date
Market Selection and Foreign Market Entry Mode
Introduction
Companies involved in the international market need to seek ways to keep and achieve a competitive advantage. Therefore, innovative strategies are necessary in order to attract and retain the target customers. One of the ways of remaining competitive is to expand globally. This enables the company gain new market share, create new markets, find new suppliers and to increase shareholder wealth. This paper looks into Zipcar’s engagement in the international foreign market.
What country or countries should Zipcar enter next beyond the five countries they already operate in?
Zipcar, the world's leading car sharing network, has operations in urban areas and college campuses throughout the United States, Canada, the United Kingdom, Spain, and Austria. It is a subsidiary of Avis Budget Group, Inc. (Nasdaq: CAR), a leading global provider of vehicle rental services (Zipcar, 2016). Having succeeded in these countries, Zipcar should consider expansion to Singapore where it will enter as a highly innovative and new concept. This is because Singapore a high-density metropolitan country areas where mostly the choice of transportation is walking, cycling or public transit. This clearly indicates that the residents here typically do not require cars to go about their daily activities, and it is good news for car sharing business sine low rates of car ownership is one of the best predictors of the business’s economic viability. In addition, those who own cars have to bear with high parking demands in term of cost and space. This makes Singapore a suitable market for Zipcar to expand its services (Venkateswaran, 2012).
What mode of entry should Zipcar use to enter this country or countries that you chose?
Rajagopal (2009) provides an array of modes of entry for companies to choose from when venturing into the inter...
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