... 1. Zipcar motivates its customers and partners by truly addressing their needs and wants from a company like theirs. For example, customers want something that will save them money. Zipcar’s solution to this is an affordable way to use a car that’s much cheaper than buying your own car. It cuts out the need to buy insurance, maintenance, gas, parking, and the general cost of the car. Cities want to cut down traffic and congestion. By using Zipcar, people tend to drive fewer miles and be more efficient when it comes to driving to and from somewhere. For customer motivation, I would rate them a 3, because most people would prefer to have their own car. Zipcar is not for everyone, but it is extremely useful on vacation, business trips, or simply for convenience. For city motivation, I would rate them a 3 because of how much congestion and traffic will decrease from Zipcar. For businesses, I would rate them a 4 because I believe they would be interested to this as a substitute for rental cars during business trips or as a substitute for issuing work cars for employees. I think it would be not only convenient but cost efficient for the company. For universities, I would rate them a 3, because most students prefer to walk to class or are used to campus buses and other forms of transportation. However, it would be appealing for the students who are unable to afford their own car or live on a campus where little driving is needed. 2. I believe that Zipcar has a...
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...ZIPCAR CASE ANALYSIS The pain that Zipcar is trying to address is the inconvenience and costly car options to the web-connected people. Based on our analysis of the case we think Zipcar’s business is easily imitable and to prevent an entry of new competition, Zipcar must achieve economies of scale at the earliest and strategize to increase their customer base and lower their customer attrition going forward. In the long run, the success of the Zipcar would depend on how many customers they have and the ability of Zipcar to leverage on their economies of scale. We would also recommend on how they can more wisely choose their type of cars, promote their brand and most importantly how they can raise funds at the upcoming Springboard conference. Though the primary emphasis of Zipcar is on convenience and cost savings, the Zipcar concept is planned to be marketed as environmentally friendly. We feel this is an additional pain that Zipcar is trying to address that poses risks because, firstly, there are other two similar companies in US (Portland-based Car Sharing Inc. and Seattle- based Flexcar) that are already more focused towards the environment friendliness. Secondly, if Zipcar really wants to market their product as environmentally-friendly, then they probably should choose their launch car from a list of most environment friendly cars of 2000 such as Toyota Prius, Honda Insight or...
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...Kathmandu University School of Management | Entrepreneurship and Innovation | Zipcar: Redefining the business model | | | 3/29/2015 | Submitted to, Prof. Rupesh Krishna Shrestha | Submitted by, (Group 6) Niraj Ghimire (14313) Amit Pathak (14325) Subigya Regmi (14327) Prajwal Sagar Shrestha (14332) Synopsis: Zipcar is a start-up organized around the idea of "sharing" car usage via a membership organization. This case describes several variations of the Zipcar business model along with their financial plan. 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. This case is all about the underlying the business model for the venture and to discover how these assumptions are holding up as the business is actually rolled out. Case Facts: * The company was incorporated in January 2000 and raised an amount of $50000 from an angel investor. * Although an MBA from MIT with a good professional background, Robin Chase had minimal experiences regarding start-ups. Similarly, Antje Danielson, despite having held several high position jobs was relatively inexperienced when it came to entrepreneurial venture. * Car sharing was best suited to urban areas where the population density is high. * College-educated individuals were the most receptive to the proposition of car sharing. * Penetration for the car sharing business module was small (0.01%) in...
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...------------------------------------------------- Zipcar: Refining the Business Model MARKET ANALYSIS 1. Intuition 2.1. Guess/feel where there is a need ? * Danielson while returning from a trip to Germany where she discovered the car sharing concept, which was already very trendy in Europe * Chase believed there was a strong demand for this service in the US because it provide a new low cost and convenient alternative than to own a car that you would drive occasionally and still pay the insurance * Chase didn’t hesitate when Danielson proposed the venture, believed it was the right moment to launch this idea 1.2 . Where value proposition could be the most interesting? Car sharing was best suited: * Urban locations with a dense population * Cities with expensive and insufficient parking * Locations where the need to drive was limited because allocated with good transportation system * Boston, as most European cities, met all the key criteria 1.3. Where early adaptors could be ? People who need a car just occasionally and don’t want to have the cost of a car * College educated individuals * People who mainly use the transportation system to go to work * Housewives who just need a car for an hourly usage 1. Hard data: confirm intuition 2.1. Evidences confirming the need ? * The concept was already very successful in most European cities * Glenn Urban...
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...a pioneer in the car sharing/rental market in the United States with long-term potential. * The main goal of Zipcar is to satisfy unmet consumer needs regarding a convenient access to transportation by offering car-sharing service that works with advanced wireless platform. 2. 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. This company wants to facilitate its customer’s life by allowing them to access Zipcar’s parked cars at designated spots. Then we can mention that the companies target markets are: * Males and females who are cost-conscious customers * College-educated and web-connected individuals * People who care about the environment and prefer “green” options * Executives and workaholics who do not have enough time to keep a car due to their busy lives. 3. Current Positioning Strategy Zipcar positions itself as a trendy company and the green solution to the problems of metropolitan cities such as traffic jams, and high cost of car ownership. The company attracts its target markets by offering a low cost and convenience driven model. 4. Current Marketing Mix Price $4.50 and hour and 40 cents a miles. Zipcar also has a $44 per day maximum daily rate. The price represents a low cost for people who drive short distances ...
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...Juan Francisco Marines Case Study Analysis: Zipcar (1) WHO ARE THE MAIN PLAYERS IN THE CASE? | Summary: Who: Robin Chase CEO and Co-founderWhen: October 14, 2000What: Option 1: Reach out to other investors Option 2: Create a new business model Option 3: Close the businessMain Players: * Robin Chase * Antje Danielson - * Corporate PresidentOthers * Glenn Urban – Dean and mentor to Chase * JohnSnow – Consulting Firm * Paul Covell – MIT engineer * Investors CircleAlliance Partners: * Dan Holland – Venture partner * Transit Stations * AP reporter – press coverage Competitors: * Europe car sharing companies - Swiss Mobility CarSharing, Drive Stadtauto * Rental Car Companies – Hertz, Enterprise, Avis * Public Transportation * North American car sharing companies - Common Auto, Flexcar | | | (2) IDENTIFY THE MAJOR PROBLEMS AND ISSUES IN THE CASE. | 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. By setting a premature date everything seemed to have been done with a rush, even the acquisition of funds from investors for capital. Although the Glenn Urban was correct in saying the business idea was a really good idea, and having the data to support this type of business venture, however there is something...
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...MAY 9, 2005 MYRA HART MICHAEL J. ROBERTS JULIA D. STEVENS Zipcar: Refining the Business Model It was October 14, 2000, and Robin Chase was leaving yet another meeting with potential providers of capital for her fledgling venture, Zipcar. Chase was CEO and cofounder of the company, which she and Antje Danielson had started some 10 months before. The idea behind Zipcar—a sophisticated form of car sharing—was simple, yet potentially revolutionary. Chase and Danielson had conducted some initial research during late 1999, and by the end of that year, the two had developed a business plan. They had incorporated in January 2000 and raised their first $50,000 from one angel investor. By June of 2000, the two entrepreneurs had leased 12 cars and were ready to open for business in Boston. By October, the fledgling company had 19 vehicles, nearly 250 members, and the founders had raised—and spent—an additional $325,000 to fund the early stages of operations. Yet, even with this demonstration of viability, Chase and Danielson had not succeeded in raising the equity capital they needed to really grow Zipcar. Beginning in early 2000, Chase had made a series of presentations to potential investors in which she sought $1 million in capital to prove the business model in Boston and, eventually, to set the stage for expanding the business to other U.S. cities. Potential investors seemed intrigued and enthusiastic about the Zipcar idea. While Chase hoped to close on this first round of financing...
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...Mich ael J. Roberts, and Research Associate Julia D. Stevens prepare d this case. This case draws upon portions of an earlier case, “Zipcar,” HB S No. 802-085 (Boston: Harvard Bu siness School Publishing, 2002), written by Professor Myra Hart and Research Associat e Wendy Carter. HBS cases are developed so lely as the basis for cl ass discussion. Cas es are not intended to serve as endorsements, sources of primary data , or illustrations of effective or ineffective management. Copyright © 2003 President and Fellows of Harvard College. To orde r copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, us ed in a spreadsheet, or transmitted in any form or by any means—electronic, mechani cal, photocopying, recording, or otherwise—without the permission of Harvard Business School. MYRA HART MICHAEL J. ROBERTS JULIA D. STEVENS Zipcar: Refining the Business Model It was October 14, 2000, and Robin Chase was leaving yet another meeting with potential providers of capital for her fledgling venture, Zipcar. Chase was CEO and cofounder of the company, which she and Antje Danielson had starte d some 10 months before. The idea behind Zipcar—a sophisticated form of car sharing—was simple, yet potentially revolutionary. Chase and Danielson had conducted some initia l research...
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...Case 6.2 Analysis Zipcar: A Business Model Innovator That’s Changing the Way People Think About Cars. 1. Answer: Zipcar has created a model that would be difficult for other companies to imitate with its technology infrastructure and low over-head. I think the motivation of Zipcar is the innovation services and customer first basic purpose. The initial business plan of Zipcar was to provide the convenience of owning a car, without actually having to pay for all the expenses of actually owning a car. They wanted to target those that needed a car for only a few hours, as compared to renting a car for a whole day. Zipcar is the perfect answer for customers who wanted to rent a car for few hours in their home city. That just goes to say that Zipcar had a target niche market and fully utilized technology in their business modeling. The convenience of the car renting process to Zipcar’s customers makes it very likely that they get repeat patronage, giving them a sustainable advantage. About the scale, I would like to give it 4. 2. Answer: Yes, I think Zipcar has a good story to tell. About the question of accessing to market, the company’s target customers are educated and internet savvy urban dwelling people, so I think it’s easy for Zipcar’s employees to clearly explain what they do and what the benefits of its service which is non-car owners will have the service at their disposal whenever they require thru reserving it on the...
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...Assignment ZipCar Evaluate this potential venture and the progress that Chase has made. For the purpose of evaluating the Zipcar business venture I made use of the format of the Salhman article named “How to write a great business plan.” Hereby, a business framework should systematically assess four independent factors critically to every venture namely; The People, The Opportunity, The Context and an overview of possible risk and the reward for coping with these risks effectively. After shortly explaining the factors I will apply this framework to the Zipcar Case and analyze the quality of its business model. This makes it possible to evaluate the potential of the venture; and its progress from scratch to start, from an investor’s perspective. The people The success of a product or service is dependent on the people developing them. “The people” refers to both the entrepreneurs developing the business as all other actors who have been actively involved in providing key resources or important services. The analysis The easiest way to analyze the people behind the business is by usage of the ‘Fourteen personal questions every business plan should answer’. Hereby, I looked at the completeness in providing the right information and the quality of the information that is provided in the Zipcar case. At first, both developers of the concept; Danielson & Chase were highly experienced and qualified within their field of interest. Danielson; having an educational background...
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...Case Study: Zipcar Bryan Gibson IT496 June 24, 2013 Contents Case Description 3 Firm History & Products 3 What Do They Do Well? 4 Are Their Things They Do Poorly? 5 Porter’s Five Forces 6 POTENTIAL THREAT OF NEW ENTRANTS 6 BARGAINING POWER OF SUPPLIERS 6 BARGAINING POWER OF BUYERS 6 THREAT OF SUBSTITUES 6 INDUSTRY COMPETITORS 7 Sustainable Competitive Advantage 7 Case Questions 8 Discuss the synergy between the business strategy of Zipcar and information technology. 8 As the CEO of Zipcar, what would you do to sustain a competitive advantage? 8 Is Zipcar a Success or Failure? 9 Will Zipcar Survive? 9 Should Zipcar Alter Their Strategy? 10 References 11 Case Description Zipcar is a company that was co-founded by Antje Danielson and Robin Chase in January of 2000, and was based on a car-sharing system originally utilized in Germany and Switzerland. The concept was to allow car rentals by the hour, with arranged pick-up and drop-off times located in neighborhoods allowing customers to simply walk to the vehicle without the need to wait in line. Danielson and Chase were concerned about the environment and this was their solution to vehicle overcrowding. 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. Zipcar is backed by a proprietary IT platform which allowed...
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...Case Study: Zipcar Bryan Gibson IT496 June 24, 2013 Table of Contents Case Description3 Firm History & Products3 Case Description Zipcar is a company that was co-founded by Antje Danielson and Robin Chase in January of 2000, and was based on a car-sharing system originally utilized in Germany and Switzerland. The concept was to allow car rentals by the hour, with arranged pick-up and drop-off times located in neighborhoods allowing customers to simply walk to the vehicle without the need to wait in line. Danielson and Chase were concerned about the environment and this was their solution to vehicle overcrowding. 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. Zipcar is backed by a proprietary IT platform which allowed the flow of information between customers, cars and the company, and social networking technologies which allowed them to develop an online community of members. Therefore, IT plays an integral part in the company’s success by creating a buzz and encouraging community development. By focusing on automation, customer empowerment, transparency and community, Zipcar brought the Web 2.0 concept to its business model. Firm History & Products Antje Danielson was a 42-year-old woman working on a Harvard energy-research project when she first contacted Robin Chase...
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...Case 6.2 Analysis Zipcar: A Business Model Innovator That’s Changing the Way People Think About Cars. 1. Answer: Zipcar has created a model that would be difficult for other companies to imitate with its technology infrastructure and low over-head. I think the motivation of Zipcar is the innovation services and customer first basic purpose. The initial business plan of Zipcar was to provide the convenience of owning a car, without actually having to pay for all the expenses of actually owning a car. They wanted to target those that needed a car for only a few hours, as compared to renting a car for a whole day. Zipcar is the perfect answer for customers who wanted to rent a car for few hours in their home city. That just goes to say that Zipcar had a target niche market and fully utilized technology in their business modeling. The convenience of the car renting process to Zipcar’s customers makes it very likely that they get repeat patronage, giving them a sustainable advantage. About the scale, I would like to give it 4. 2. Answer: Yes, I think Zipcar has a good story to tell. About the question of accessing to market, the company’s target customers are educated and internet savvy urban dwelling people, so I think it’s easy for Zipcar’s employees to clearly explain what they do and what the benefits of its service which is non-car owners will have the service at their disposal whenever they require thru reserving it on the web. 3. Answer: Core Strategy: Zipcar’s...
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...Case Analysis: Zipcar Business Model: Application in the US of a car sharing service that provides customers (that can not own a car or do not want to own a car) access to an automobile at defined parking spots by daily or hourly billing. SWOT Analysis: Strengths | Weakness | * Business in a niche market (blue ocean) with a viable concept (sharing that allows save money to customers) * Starting at a very suitable location for the strategy (Boston) * Easy of use and environmentally friendly concept (reduce car usage and pollution) * Well developed technology (protected by patent) | * Higher costs and attrition rates than expected for setting up the strategy * Lack of expertise in this industry and in venture capital of the founders (very anxious) * Very improvised launching (technology platform was not ready) * Poor financial attractive delivered to investors (economic model) | Opportunities | Threats | * Potential growth of the market (low penetration in the US) * Attractive alternative than owning a car (potential customers) * Alliance with car makers or car rental * Potential for revenue diversification (enhancements to the car) | * Vulnerable to increases in costs (parking, fuel, insurance, leasing) * Car rentals offer lower and competitive prices. * Problems to locate good parking spaces in some urban areas. * Potential investors require higher than expect returns (expensive financing) | Recommendation: Zipcar founders...
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...MAY 9, 2005 MYRA HART MICHAEL J. ROBERTS JULIA D. STEVENS Zipcar: Refining the Business Model It was October 14, 2000, and Robin Chase was leaving yet another meeting with potential providers of capital for her fledgling venture, Zipcar. Chase was CEO and cofounder of the company, which she and Antje Danielson had started some 10 months before. The idea behind Zipcar—a sophisticated form of car sharing—was simple, yet potentially revolutionary. Chase and Danielson had conducted some initial research during late 1999, and by the end of that year, the two had developed a business plan. They had incorporated in January 2000 and raised their first $50,000 from one angel investor. By June of 2000, the two entrepreneurs had leased 12 cars and were ready to open for business in Boston. By October, the fledgling company had 19 vehicles, nearly 250 members, and the founders had raised—and spent—an additional $325,000 to fund the early stages of operations. Yet, even with this demonstration of viability, Chase and Danielson had not succeeded in raising the equity capital they needed to really grow Zipcar. Beginning in early 2000, Chase had made a series of presentations to potential investors in which she sought $1 million in capital to prove the business model in Boston and, eventually, to set the stage for expanding the business to other U.S. cities. Potential investors seemed intrigued and enthusiastic about the Zipcar idea. While Chase hoped to close on this first round of financing...
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