Threat of new entrants: The threat of new entrants is something to be concerned about. Words: 356 - Pages: 2. For example, customers want something that will save them money. ComZipcar was founded in 2000 by Antje Danielson and Robin Chase, and by December 2010 offered over 8,000 vehicles to 560,000 members in urban areas throughout 28 north American states and provinces. In order to gain additional funding they would have to bring in there best arguements to why they should be funded by outside investors.
We take care of your deadlines as we believe in on time delivery of assignments. It imposes an annual fee for its members depending upon the level of service and a fee per hour. Zipcar Case Solution However, the actual cost was even more analysis that initially planned out since leasing companies charged more if additional cars zipcar added while the parking harvard harvard costs were higher study expected. These variations include a very early version and a version developed just prior to the launch of the business, as well as data from the first few months of operations. However, the new entrants will eventually cause decrease in overall industry profits. Industry Competitors Industry competitors of Zipcar would be the.
Merged with Seattle-based rival Flexcar in 2007. Current Target Markets Basically Zipcar wants to attract people who do not have a car, and people who are not interested in dealing with the hassle of owning a car due to traffic jams, maintenance costs, not enough parking lots especially in urban areas. Thisnew service faced very little actual competition in its target market, Boston, and wouldnot expand until the business model was proven and established. See Appendix A In addition, Zipcar has built asense of community with its members through an on-line newsletter and listserv Russel,2003 along with their grassroot, almost simplistic marketing strategy. Words: 2777 - Pages: 12. By June of 2000, the two entrepreneurs had leased 12 cars and were ready to open for business in Boston.
The expense in marketing was extremely low, but it was very effective. Business, Product and Customers: Mission Statement Titleist Training Program will be a worldwide operation to make sure that all players are happy and successfully using Titleist equipment on the golf course. The major problem in this case is that Chase has an amazing idea, but was not adequately prepared for this type of business venture considering the time frame that she had put on herself to launch this company, and what she wanted to do for Zipcar. Solution these strategies, Chase can put forward her case in front harvard the private investor and at the Springboard and can present it as a worthwhile idea which would get analysis and moral support. Not only would this be an innovation, it would be a new concept altogether and study in business a business venture would generate positive revenue inflows since customers would be looking for convenience analysis cost savings in the harvard the a new idea. The assumed attrition rate was also increased to 15% from 5% based on more detailed analysis conducted by Chase for the Boston residents. First of all, the ease of use, the inclusion of new.
Founders of most successful startups started searching for solutions to a problem they cared about and made it their focus. What action are you suggesting Chase take? Danielson had observed the concept of car sharing on a vacation in Germany, which she noted was a trend throughout Europe. As good, Christians when coming up with a plan in the business world we need to consider others around us, and how these decisions will affect others not only in business but also in our consumers. When the actual model was put into practice, several changes had to be made in the original plan of December. Mostly people attend this course in the last year and analysis is model most widely English language test. Zipcar has been the choice of partners becauseof its successful track record, user-friendly technology, and advanced web-basedreservation system, which continues to add to its success.
Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts. These iterations include a very early version and a version developed just prior to the launch of the business, as well as data from the first few months of operations. You can use the following strategy to organize the findings and suggestions. This is just a sample partial case solution. This is specifically because Zipcar is less expensive than owning or renting a car because members do not pay for insurance, maintenance, parking or gas. Danielson and Chase were concerned about the environment and this was their solution to vehicle overcrowding.
Prices are set by looking at what other rental providers rent for a day and staying below that to attract the customers. Furthermore, Zipcar had an excellent image and reputation and establisheditself as a progressive and socially responsible company, which only added to its strongcustomer position. Well your post is looking me very creative. Additionally, they feel their service helps to alleviate the headaches associated with owning a car, and gives people the option of having a second car or a bigger car, if it suits their needs, without having to buy. Looking at the original financial projections exhibit 3 , I have done a simple breakeven analysis and computed using an average of 18. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
The the cost drivers Appendix 2 in this business model study in analysis case of corporate overheads and cost of goods sold such as lease costs per analysis, fuel, insurance and maintenance for the cars along with parking and equipment charges for each car. Zipcar is less about transactions and more about establishing a village ofcustomers with a strong sense of community spirit Kennedy, 2003. Is the program environmentally friendly? The funding would also help Chase to increase the network effects by the increase of the usage within the single market. Business models go far beyond a simple business strategy, but also encompass it. Despite the technological setback, Zipcar was able to obtain 3 cars and rely on members to keep a driving log to track usage.
Chase agreed to partner with Danielson and they began to develop their business plan and to seek funding for it. Be very slow with this process as rushing through it leads to missing key details. Deal : With the benefits of environment protection and avoiding high parking and fixed costs of car ownership, the deal attracts customers with limited driving requirements. Business decisions need to be thought out but it should not be at the cost of our spirits and souls. As a result, a digital copy of an educator if not available through this Analysis site.