Micro – Car-sharing in Russia

Strengths:

Cool and modern brand image
Unique technological platform
A lot of experience in the industry (1)
“Save-the-Earth” strategy
Avis is already operating in Russia (2)

Weaknesses:

No experience in emerging markets
Low brand awareness in Russia

Opportunities:

Increasing environmental concerns
Government support of eco-cars and development of infrastructure (3)
Partnerships with government and car plants (4)

Threats:

Increasing rivalry and substitute services (car rent, taxi, public transport)
Russian consumers are not familiar to car sharing
No infrastructure
High level of corruption and bureaucracy

Notes:

(1): Zipcar is a leading company in US. It enjoys first-mover advantage and therefore are well-aware of specifics and pitfalls in the car sharing industry. This experience might be helpful in expanding to another markets

(2): Avis is operating in Russia for more than five years, since Zipcar is its subsidiary that has no experience in emerging markets, it would be easier for Zipcar to enter Russian market with Avis’ experience

(3): From 2014, Russian government implement new legislation in order to support and promote the use of electro-cars. For instance, zero-tariff on the import of such cars and more facilities for service (charging and service stations). That might be crucial if Zipcar decides to continue its “green strategy” and will try to raise electro car culture in Russia.

(4): Since car sharing business requires of the company to own a wide-range car park, one of the possible solutions is partnerships with car assembly plants. Ford, General Motors and Nissan are successfully operating in Russia and might be considered as potential partners. Also, following from the previous point, Zipcar might be supported by government as a part of promoting electro-cars program.

To sum up: Although today car sharing is not well-spread service among Russian people and many things should be overcame in order to build profitable relations with customers, there are a lot of opportunities for the industry here. Moreover, Zipcar has several strategical advantages that will help it to become successful in Russia.