The tar is very old, beloved, has some odd option formats (- is optional), has options to control record size on tape, pad records to size so no lost record takes out 2 files, and later versions have gzip and bzip2 compression options. It is a serial list of headers and data, with the only update ability the option to append an overwrite farther down the archive. There is no directory to allow random access.
Man Page for tar (linux Section 1) - The UNIX and Linux Forums
The zip is more a compression-optional file system within a file, now also used for jar files. The are C/C++/JAVA APIs for it. Files can be compressed, in a way automatically chosen to be appropriate to their content, can be deleted and updated, the zip can be reorganized to reclaim space from deleted or shortened files. Files can be efficiently random accessed to restore, to stdout or the API. It has a weak password system, but they say "locks are to keep the honest people out", so it is a sometimes useful feature. Windows Explorer supports it almost like a directory (partial system support).
zip - Linux Command - Unix Command
-P password
use
password to encrypt zipfile entries (if any).
THIS IS INSECURE! Many multi-user operating systems provide ways for any user to see the current command line of any other user; even on stand-alone systems there is always the threat of over-the-shoulder peeking. Storing the plaintext password as part of a command line in an automated script is even worse. Whenever possible, use the non-echoing, interactive prompt to enter passwords. (And where security is truly important, use strong encryption such as Pretty Good Privacy instead of the relatively weak encryption provided by standard zipfile utilities.)
Advanced ZIP Password Recovery - CNET Download.com
Many tools can deal with either, e.g. WinZip. If you do not like either, there is cpio, 7zip, rar, rpm, pkg, . . . .