Zipcar Refining the Business Model Case Solution

Case Solution

Zipcar can be a start-up organized around the idea of talking about vehicle usage utilizing a membership organization. This case describes several iterations in the Zipcar business model and operating plan. These iterations add a very early version together with a version developed just right before the launch in the business, additionally to data within the initial few several days of methods. Students are classified as onto assess the actual overall costs and business model for your venture also to uncover how these presumptions support since the business is actually folded out.

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Questions Covered

Evaluate this potential venture and the progress that Chase has made.

How would you characterize the service Zipcar provides? With which companies or services does it compete? What role does it play in its competitive landscape?

What is the business model, and how has it changed between December 1999 and May 2000? a.What do the data from actual operations in September say about how the business model is playing out in practice? b. Does this data give you comfort or concern?

What actions should Chase take as a result of the September operating results?

What mechanisms does Zipcar have in place to manage behavior? What, specifically, are these mechanisms intended to accomplish?

What are the biggest risk and opportunities for Zipcar’s sustained growth and profitability in the future?

If you have one minute with Chase in an elevator, a. What operations related recommendation would you make? b. What suggestion would you have for Zipcar to manage consumer behavior (or is that even necessary)?

Finally, if Chase has one minute with a VC in an elevator, what should she try to convey?

What is the strongest argument Chase could make to a potential investor about the attractiveness of the venture?  What, specifically, should her elevator pitch be at the Springboard forum?