zipcar case study answers

• Order Status
• Testimonials
• What Makes Us Different

Zipcar Harvard Case Solution & Analysis

Home >> Harvard Case Study Analysis Solutions >> Zipcar

Zipcar Case Solution

Contains a detailed description of the processes and tasks associated with the creation of a new enterprise in a developing industry (subscription carpooling to urban residents). Chronicles the development of the concept of the entrepreneur, industry analysis, market research, determining the identity and brand building. Also provides background information on writing a business plan, budget creation and building finance, development management team, the creation of business partnerships and financing business. This case is only available in paper format (HBP do not have the rights to distribute digital content). As a result, a digital copy of an educator if not available through this Web site. “Hide by Myra M. Hart, Wendy Carter Source: Harvard Business School 17 pages. Publication Date: 01 Oct 2001. Prod. #: 802085-HCB-ENG

EVALUATION OF ZIPCAR

Chase’s care sharing venture, Zipcar, is a typical example of a revenue model with multiple revenue streams. This car sharing service allows members to access cars parked at designated spots through zipcards which are issued to members and provide convenience to individuals who do not own a car and yet do not want to go through the hassle of keeping a private car.

The multiple revenue streams in this model include revenue from an annual membership fee, application fee for new members, security deposits and variable income in the form of charges per mile and hour. Additional revenue heads include late fee charges.(Appendix 1 ) The major impact on the revenue is from an increase in memberships which not only leads to an increase in security deposits but also to a potential rise in variable revenue heads such as per hour/mile charges.

The main cost drivers (Appendix 2) in this business model are in the form of corporate overheads and cost of goods sold such as lease costs per car, fuel, insurance and maintenance for the cars along with parking and equipment charges for each car. There are additional variable costs in the form of fee for consultants and software developers for developing the wireless technology system for the business but these would be non-recurring costs since they only have to be incurred till the development is complete. Corporate overheads are expected to be $44000 per month while the Boston office alone has overheads of $14000.

This business model has already used up $50000 as the initial investment in the form of cash borrowed from friends while an additional contribution of $375000 was made by a venture capitalist. Even then the business requires an additional investment of $1.3 million for being built on the pattern as originally planned out by the entrepreneurs. This shows how the initial investment was not worked out well and neither were the sources of finance planned out effectively.

The critical success factor for this business is the ability of the service to attract the target market with its low cost and convenience driven model since the business would require a regular revenue stream for a successfully covering the costs and generating a positive inflow.

Chase has managed to launch the idea even though the wireless platform has not been developed yet which shows that she did not want to let the company down by postponing the launch of the service and this shows considerable effort on her part to have taken this strategy and idea forward as a potential business venture

BUSINESS MODEL ANALYSED

Originally the business model was based upon a wireless technology platform which would allow members to make online reservations and access cars at designated parking spots through specific zipcards .The system was to capture information about the car in the form of usage per miles and hours which was then sent to a central location for billing.

The initial plan in Dec 1999 was to charge $25 as the non-refundable application fee along with $300 as a fully refundable security deposit from each member along with annual charges of $300 per member. The original charges per hour were decided at $1.5 and the per mile charge kept at $0.4. The costing model was developed to cover the overheads and the costs of goods sold .

When the actual model was put into practice, several changes had to be made in the original plan of December 1999. For starters, the complete technology platform had not been implemented before the launch and so the system which was introduced initially did not have car specific zipcards. The keys had to be left in the glove compartment for each car as well as the wireless system was not developed yet. Even the records had to be kept and maintained manually by the members for billing purposes instead of the wireless based billing system as originally planned for Zipcar.

As far as the cost model was concerned, customers found the $300 annual deposit too high and it had to be reduced to $75 per year. To balance the revenue stream , the hourly rate was raised from $1.50 to approximately $5.5. So, the initial contribution per member was estimated at 2559.2 whereas in actual it came out to be $ 1723.2 (Appendix 3)

As per the original financial plan for December 1999, the variable costs per car were estimated at $7580 ( Appendix 4) while the plan for May 2000 estimated the cost per car at $8680 because of an additional parking charge of $600 per car. However, the actual cost was even more than that initially planned out since leasing companies charged more if additional cars were added while the parking and fuel costs were higher than expected. So the actual cost per car came out to be $9338 per car. However, with 350 current members and 12 operational cars, the total revenue adds up to be $603155 and the Total cost of goods sold are $112056 which gives a gross income of $391099.  With overheads cost of $180975, this gross income is enough to cover the overheads as well so the business does not seem to be in any sort of financial trouble.

With an additional revenue stream in the form of more members in the next five years, the business would see an increase in revenue stream and would become self-sufficient with lesser dependency on additional funds. Currently the business has to take care of additional set-up expenses in the form of the wireless system and fees for its consultants and software developers. Further advertising and research would also need to be done and all this needs additional funds which have to be generated in the form of a loan . The business does seem to have a regular cash flow and revenue stream for now and this would help in paying back the initial investment .

RECOMMENDATIONS

The September results mention an increase in the parking costs along with the increase in lease and fuel costs. Even with these additional costs, the business does seem to work out fine with 350 members as mentioned in the press release of June 2000 .

However, looking at the September results, it can be seen that the actual members enlisted are 239 rather than the assumed 350. This means that further efforts have to be made in increasing the number of memberships. It should also be noted that out of 112 new memberships, only 105 are approved while 7 are rejected in the September results. The business needs to focus more on advertising efforts instead of just relying on word of mouth and advertising through post cards . The business currently advertises at sub stations and near parking spots for their cars. Since the target market is mostly college students who would prefer to share a car than own it, advertising efforts could also be aimed at colleges in Boston. Chase should try to avail marketing strategies that compare the cost effectiveness of Zipcar with that of privately owned cars for making this venture worthwhile for the target market.

Another alternative is to target a different market altogether alongside the current segment. A different set of cars  can be used for the other segment which would be different from the current market . Corporate markets can be targeted and bigger vehicles can be used for corporate use. One advantage of targeting the corporate sector is that they are less price sensitive and ZipCar can charge higher prices from corporate members listed in the corporate plan.

Ultimately Chase has to consider finding alternative options for financing the technology platform that would be the main strength of the project. With lesser memberships, Chase should look at a plan of implementing marketing strategies that can attract potential investors so that the platform can be completed quickly.

The operating results also bring concern in the form of accounting practices which only book 1/12 th   of the revenue from the membership fee of $75. Instead of following this conservative practice of accounting revenue, Chase could adopt a strategy of allowing revenue to be realized earlier so that the business can take an attractive plan for financing possibilities in front of potential creditors.

However, the September results do not portray any major problem that needs to be addressed other than the fact that the membership status is lesser than that planned out for the new venture and unless that is improved, the business may find itself with high costs in the form of overheads that may not be easily balanced with the revenue stream

ARGUMENTS FOR CHASE

In attracting a potential investor to invest in ZipCar, Chase has to use a different strategy altogether which needs to focus on the financial attractiveness of the venture, making it seem worthwhile for an investor who would be putting $1.3 million at risk. Chase could discuss the concept of convertible loans as had been done for other investors in the past where investments of $50000 and $375000 had been taken as loans only to be converted into equity in the future.

Several arguments can be presented to potential investors for making this business model seem like an attractive investment. For instance, Chase could focus on the idea that the market for car sharing is growing at a rate of 30% annually which would mean that there is a lot of potential for new investors in this segment. Secondly, Chase could also show how the previous investors have only brought in capital of $375000 and $50000 which was to be converted into share capital or equity in the future while a current investment of $1.3 million would mean a greater share in equity for the potential investor.

Chase could further stress on the potential in the US market by pointing out that the US market was large and virtually untouched so far as far as the concept of car sharing was concerned. Bringing this concept into the US market with a full force using the wireless technology would give ZipCar a competitive edge. This concept could be further stressed by pointing out that currently there is no car sharing service in this particular side of the East Coast and by launching this service in Boston and in other states in the US, ZipCar would be looking at a market of immense potential.

The strongest argument that could be put forward is that of ZipCar launching a service which would be using a wireless security and data transmission system. Not only would this be an innovation, it would be a new concept altogether and investing in such a business venture would generate positive revenue inflows since customers would be looking for convenience and cost savings in the form of a new idea.

The strategy to be adopted at the Springboard forum would be different altogether. It should be focusing on the idea of women entrepreneurs working on developing a model which is generally not considered viable for females. Therefore, the entrepreneurs would need support in the form of encouragement and financial help for taking the idea forward. Along with that, the environmentally friendly concept of the car sharing model could be addressed at the Springboard forum with a specific emphasis on the idea that this concept would cater to the demands of 7.5 individual car owners so that would mean one shared car would replace 7.5 individually owned ones.

Likewise, the focus can further be on the fact that this venture would bring about ease of use and cost savings for the general American individual. This would lead to major costs savings for households that would be needing transportation but would prefer not to get into the hassle of handling a car and its maintenance.

Through these strategies, Chase can put forward her case in front of the private investor and at the Springboard and can present it as a worthwhile idea which would get financial and moral support…….

Zipcar Case Analysis

Many people wonder about the benefits of the Zipcar business model. What do these car-sharing services offer? Is it right for them to look into using the service?

The Zipcar Business Model, as defined by the Zipcar website, is “for people who want to give cars away for a monthly membership fee.” They give you the use of a vehicle and you pay the monthly membership fee. So, if you only want one vehicle and you are planning on only using it during the month, you should consider using a different type of car sharing.

Another case study that can be used to evaluate the benefits of the Zipcar business model is the Mercedes Benz. It does not get any more American than the Mercedes Benz. How does this comparison point out benefits of the Zipcar business model? I have a few comments about the statement.

First, let’s look at the total annual travel expense. It takes about an hour and forty minutes to get from Point A to Point B, using the average United States driven automobile. Using the Zipcar model, the individual would spend about three hours each way with just one vehicle.

Then the amount of time that would be necessary to travel back and forth between the vehicles would add up to more than four hours of total travel time. So the benefit is getting a vehicle and paying a monthly fee for usage of one vehicle. How does this compare to the total annual travel expense for the Zipcar model?

The Zipcar model only offers one vehicle, which the cost would be two hundred and twenty dollars a month. That is a lot less than most, if not all, of the automobiles available on the open market. Therefore, the Zipcar business model only costs about one-third of what a similar automobile would cost on the open market.

In my opinion, the Zipcar business model is the best vehicle for an individual who would only need a car for a short period of time. Although the actual price for a Zipcar is more expensive than renting a similar vehicle for a week or two, the cost savings are worth it. In addition, the individual can purchase additional Zipcars at a higher price than they would be able to afford otherwise.

It also should be noted that Zipcar will provide insurance. However, in a few states, the requirement for auto insurance varies from state to state. So, depending on the zip code in your area, you may be required to have a separate policy for your Zipcar rental. Zipcar provides their own coverage, so no extra charge is necessary.

Another benefit of Zipcar is that if you rent a car, then you can come back again later. If you wanted to go on vacation and rented a car, you would have to make arrangements for returning the car.

There are many things to consider when considering Zipcar. If you were an entrepreneur, wouldn’t you want to make money?

Using Zipcar, on the other hand, allows the individual to have control over their expenses. The Zipcar cost will be fixed until you cancel. The downside is that it will take much longer to get a Zipcar than it would to rent a car using the typical business model.

In my opinion, the Zipcar business model is a good solution for individual entrepreneurs who are short on time but don’t necessarily want to give up the convenience of a car. If you are in a job that gives you plenty of time and flexibility, a Zipcar is a great alternative.

Zipcar SWOT Analysis

There is a certain way to run a business, and that way is that it has to go through a SWOT Analysis. This is one of the fundamental aspects of any business plan. In fact, you can’t do any of your business planning without a SWOT Analysis.

Why do I say this? Because in any industry where you are dealing with other people’s money, you have to determine what you want to achieve and what you want to do with it. What you want to buy, what you want to do with it, and how you want to profit from all of those things.

But this goes beyond marketing. It is about finding out what keywords will bring you targeted traffic and profit. It is about finding out what keywords will lead to more sales.

Marketing is only part of the equation. We must identify what we want to get out of the business for the long term. What is the reason that you are running this business?

In a general overview, a business is a relationship. Your customers are your consumers. You are your customers. Your customers are ultimately interested in your products and services.

So your business plans will start with identifying your customer, why they are buying your product or service, and how the product or service will help them meet their needs. A SWOT Analysis will provide you with the insight into your customers to get this done.

To get down to the details of how to conduct the analysis, let’s break it down into two big picture questions. The first question is what type of customer are you? Are you a home-based business owner who needs extra income?

Or are you a business website owner looking to make some money off of organic search engine optimization? The second question is how will your competitors be affected by changes in your industry? For example, if you have a lot of new competitors entering the market, what can you do to keep them?

The important information is that you need to identify where you are today and what you want to become tomorrow. And you need to know how other companies are faring in their industry. This will help you have a better chance of success than you otherwise would have had.

This becomes even more important when you are trying to think about how to get your business started. How is your competition doing?

That is where the SWOT Analysis comes in handy. If you can determine what areas you need to improve in and which of your competitors’ needs to reduce in order to keep them, then you can determine how to go about doing that.

So remember, if you are considering starting up a business, especially an online business, the most important aspect is that you have a SWOT Analysis to help you get there. What is your competitive advantage? What are your strengths and weaknesses?

Zipcar Porter’s Five Forces Analysis

Zipcar is a privately held company that makes its profits by offering car rentals to its members. It has been known to take a “cost per mile” approach, requiring participants to pay a fee for each kilometer they drive. This cost may be as low as 10 cents per mile, although it is known to be higher. Zipcar is currently available in every major U.S. city and several Canadian cities, with more areas opening up in the future.

Since Zipcar’s inception, it has been trying to improve upon the first model by further improving on the other two. However, it seems the company is still struggling against the traditional car rental companies in terms of making it stand out from the crowd. In this article, I will outline the five forces that have helped make Zipcar successful.

First of all, Zipcar offers a free car. This has made the business very appealing to many people who do not own a car of their own and use it only for travelling. Even people who own cars and rent them out still choose to use Zipcar over their local car rental services. The free car represents a great source of publicity and brand recognition for the company.

Another aspect of Zipcar’s free car promotion is that the company provides its customers with good vehicles at low rates. Although there are many car rental services which have lower rates for paying members, none of them give their customers’ vehicles at such cheap rates. Zipcar is able to provide a great deal of competition to its competitors because of the cheap cars and the low price tag attached to the membership.

Zipcar does not limit itself to one specific region. It goes on to say that the car rental services which have been around for so long have not been able to establish themselves all over the country or even the world. By being flexible about location, Zipcar proves that it is not afraid to step out of its comfort zone and challenge the status quo.

Although the cost per mile concept has been very popular in recent years, many people think that Zipcar is overcharging its customers. In fact, the company is actually doing its best to provide its members with the best possible value for their money. It has not just retained the old concept of the ten cent per mile charge. It has also improved on this concept and has introduced more new and improved ways of charging.

As is customary in any startup, Zipcar has received significant private funding. The private funding was used to improve the quality of its service, expand into new cities, and attract new members. The company’s revenue has increased greatly since it has received the private funding. This is because private funding will usually help a company to increase its sales volume and profit margin.

Zipcar has already established a strong following among the public. In addition, it has the potential to spread this following even further. If you do not belong to Zipcar yet, you can sign up at their website and get your membership, which includes a free car. You can then advertise for them online. However, you need to remember that your success depends on how good a market you have established yourself in.

Many people are attracted to Zipcar’s discount prices and the amazing discounts they offer. The model has provided its members with an excellent deal on their car rental service, but it has also helped the company to build an impressive image. Many people like to have discounts on their services, because it can mean savings for them. This is why many people are looking for ways to get better deals and better service at affordable prices.

For several years, Zipcar has been offering its members the benefits of low prices, and getting discounts. As a result, it has proven that it is possible to achieve this without having to spend much on advertising. Just like many other small businesses, it has grown despite of its relatively low initial investment.

This is a very successful model, because people love to get discounts for their services. and like to be able to save money on their vehicle rental needs. Because it is privately owned, it has also been able to retain and expand its base of members, which ensures that it will continue to be around for a long time.

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

 This solution will also come with separate excel file with calculations.

How We Work? Just email us your case materials and instructions to [email protected] and confirm your order by making the payment here

Related Case Solutions & Analyses:

Hire us for Originally Written Case Solution/ Analysis

Like us and get updates:.

Harvard Case Solutions

Search Case Solutions

• Accounting Case Solutions
• Auditing Case Studies
• Business Case Studies
• Economics Case Solutions
• Finance Case Studies Analysis
• Harvard Case Study Analysis Solutions
• Human Resource Cases
• Ivey Case Solutions
• Management Case Studies
• Marketing HBS Case Solutions
• Operations Management Case Studies
• Supply Chain Management Cases
• Taxation Case Studies

More From Harvard Case Study Analysis Solutions

• Business Leader's Involvement in the Improvement of Education
• Wintel (C): From MMX to the Internet
• Otitis Media
• THE INFLUENCE OF ETHICAL LEADERSHIP OVER EMPLOYEE PERFORMANCE: PERCEIVED ORGANIZATIONAL SUPPORT AS MEDIATING VARIABLES
• Trifles Summary: Reasoning from Moral Theory
• William Wrigley Jr: Company Case
• Telegraph Media Group: The Newspaper Is Dead, Long Live the... (E), Change - A Work in Progress

Contact us:

Check Order Status

How Does it Work?

Why TheCaseSolutions.com?

Zipcar: Refining the Business Model

By: Myra M. Hart, Michael J. Roberts, Julia D. Stevens

Zipcar is a start-up organized around the idea of "sharing" car usage via a membership organization. This case describes several iterations of the Zipcar business model and financial plan. These…

• Length: 20 page(s)
• Publication Date: Jan 13, 2003
• Discipline: Entrepreneurship
• Product #: 803096-PDF-ENG

What's included:

• Teaching Note
• Educator Copy
• Supplements

$4.95 per student

degree granting course

$8.95 per student

non-degree granting course

Get access to this material, plus much more with a free Educator Account:

• Access to world-famous HBS cases
• Up to 60% off materials for your students
• Resources for teaching online
• Tips and reviews from other Educators

Already registered? Sign in

• Student Registration
• Non-Academic Registration
• Included Materials

This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.

Zipcar is a start-up organized around the idea of "sharing" car usage via a membership organization. This case describes several iterations of the Zipcar business model and financial plan. 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. Students are called on to analyze the underlying economics and business model for the venture and to discover how these assumptions are holding up as the business is actually rolled out.

Learning Objectives

To understand the notion of a business model and unit economics and flow through the impact of actual operating results.

Jan 13, 2003 (Revised: May 9, 2005)

Discipline:

Entrepreneurship

Harvard Business School

803096-PDF-ENG

We use cookies to understand how you use our site and to improve your experience, including personalizing content. Learn More . By continuing to use our site, you accept our use of cookies and revised Privacy Policy .

The marketplace for case solutions.

Zipcar: Refining the Business Model – Case Solution

Zipcar is a start-up organized for members on "sharing" car usage. This case tackles the business model and financial plan of Zipcar and other data depicting the first months of its operations. This case study has the object of allowing students to understand the economics and business model for the venture and how these factors affect the actual operation of the business.

​Myra M. Hart; Michael J. Roberts; Julia D. Stevens Harvard Business Review ( 803096-PDF-ENG ) January 13, 2003

Case questions answered:

Case study questions answered in the first solution:

• Evaluate this venture. Outline the value proposition(s) and evaluate the progress that the founders of Zipcar have made so far.
• What is the business model, and how has it changed from December 1999 to the current time in the case? What do the data from operations infer about how the business model is working? Are you concerned about this data (evaluate it)?
• What recommendations do you suggest for the founders going forward?

Case study questions answered in the second solution:

• Be an advisor to an entrepreneur.
• Help Chase develop an effective presentation for the Springboard conference.

Not the questions you were looking for? Submit your own questions & get answers .

Zipcar: Refining the Business Model Case Answers

This case solution includes an Excel file with calculations.

You will receive access to two case study solutions! The second is not yet visible in the preview.

Zipcar: Refining the Business Model Case Study

Zipcar wanted to provide cars on-demand for a short duration to the subscribers (p1, pa4). The subscribers do not need to own cars if they are not driving a lot. The company had an online reservation system (p2, pa3). The company would not only provide cost savings but also provide convenience to the customer (p3, pa2).

Zipcar thought that the urban locations would be a nice target for them as it has a bigger population base, expensive parking, and college-educated individuals who were the most receptive to the company’s concept (p3, pa5).

Chase also identified that the niche group of the population who would be really interested in this proposition were people who traveled less than 6,000 miles per year.

These people had many hassles with rental car companies, which prevented these people from renting cars (for private access) for the short term and whenever they needed them (p3, pa7).

The market research conducted showed that this segment was growing quickly, as in 1999, there were 200 car-sharing organizations across 450 cities in major countries in Europe (p3, pa8).

The car-sharing organizations had 130,000 members in Europe, and the valuation of this industry was estimated at $200 million with a growth rate of 30% annually with a very small investment in marketing (p4).

Zipcar could have a huge impact on the US market as the top 20 urban areas consist of 66 million Americans, and 20 million Americans utilize public transport to commute to work. So, in order to test this hypothesis, they started their MVP in Boston.

They found Boston to be a suitable place as it had insufficient and expensive off-street parking and is comprised of their target population of a huge number of college-educated people and people using the internet (p6, pa1).

Chase had made assumptions that…

Unlock Case Solution Now!

Get instant access to this case solution with a simple, one-time payment ($24.90).

After purchase:

• You'll be redirected to the full case solution.
• You will receive an access link to the solution via email.

Best decision to get my homework done faster! Michael MBA student, Boston

How do I get access?

Upon purchase, you are forwarded to the full solution and also receive access via email.

Is it safe to pay?

Yes! We use Paypal and Stripe as our secure payment providers of choice.

What is Casehero?

We are the marketplace for case solutions - created by students, for students.

• Arts & Humanities
• Communications

zip car case study questions

Related documents

Add this document to collection(s)

You can add this document to your study collection(s)

Add this document to saved

You can add this document to your saved list

Suggest us how to improve StudyLib

(For complaints, use another form )

Input it if you want to receive answer

Don't have an account? Sign up now

Already have an account login, get 10% off on your next order.

Subscribe now to get your discount coupon *Only correct email will be accepted

(Approximately ~ 0.0 Page)

Total Price

Thank you for your email subscription. Check your email to get Coupon Code.

Zipcar Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of Zipcar Case Solution

The Zipcar case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Zipcar case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Zipcar case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the Zipcar case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of Zipcar Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Zipcar is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the Zipcar HBR Case Study

The objective of the case should be focused on. This is doing the Zipcar Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

• In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
• The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
• Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of Zipcar

An important tool that helps in addressing the central issue of the case and coming up with Zipcar HBR case solution is the SWOT analysis.

• The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Zipcar.
• Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the Zipcar Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for Zipcar

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Zipcar operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

• These are the threats that the industry faces due to new entrants.
• It includes the threat of substitute products.
• It includes the bargaining power of buyers in the industry.
• It includes the bargaining power of suppliers in an industry.
• Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of Zipcar

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

• The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
• Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
• These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the Zipcar case solution.

VRIO Analysis of Zipcar

This is an analysis carried out to know about the internal strengths and capabilities of Zipcar. Under the VRIO analysis, the following steps are carried out:

• The internal resources of Zipcar are listed down.
• Each of these resources are assessed in terms of the value it brings to the organization.
• Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
• Each resource is assessed whether it could be imitated by competition easily or not.
• Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of Zipcar

The Value chain analysis of Zipcar helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

• The firm’s primary and support activities are listed down.
• Identifying the importance of these activities in the cost of the product and the differentiation they produce.
• Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow Zipcar to increase its competitive advantage.

BCG Matrix of Zipcar

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

• Identify the relative market share of each strategic business unit.
• Identify the market growth of each strategic business unit.
• Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
• Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the Zipcar BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of Zipcar

Ansoff Matrix is an important strategic tool to come up with future strategies for Zipcar in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

• The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
• The organization can develop new products for the existing market. This is known as product development strategy.
• The organization can enter new markets with its existing products. This is known as market development strategy.
• The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of Zipcar

Zipcar needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

• Analyse the company’s products and devise strategies to improve the product offering of the company.
• Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
• Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
• Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

Zipcar Blue Ocean Strategy

The strategies devised and included in the Zipcar case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of Zipcar

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Zipcar looks at the direct and indirect competitors within the industry that it operates in.

• This involves a detailed analysis of their actions and how these would affect the future strategies of Zipcar.
• It involves looking at the current market share of the company and its competitors.
• It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
• It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into Zipcar Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Zipcar case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

• The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
• The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Zipcar Case Study Solution that the business unit should focus on costs.
• The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and Zipcar case answers should be written down in the Zipcar case memo, clearly identifying which part shows what. The Zipcar case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the Zipcar HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Zipcar is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of Zipcar Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

• A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
• It shows that one has been clarified with the HBR fundamentals on the topic.
• It shows that the details provided in the case have been properly analysed.
• It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
• The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Zipcar Harvard case is complete and properly answered.

Recommendations and Action Plan for Zipcar case analysis

For Zipcar, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

• Zipcar should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
• Zipcar should enhance the value creating activities within its value chain.
• Zipcar should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
• To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

Baron, E. (2015). How They Teach the Case Method At Harvard Business School. Retrieved from https://poetsandquants.com/2015/09/29/how-they-teach-the-case-method-at-harvard-business-school/

Bartol. K, & Martin, D. (1998). Management, 3rd edition. Boston: Irwin McGrawHill.

Free Management E-Books. (2013a). PESTLE Analysis. Retrieved from http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf

Gupta, A. (2013). Environment & PEST analysis: an approach to the external business environment. International Journal of Modern Social Sciences, 2(1), 34-43.

Hambrick, D. C., MacMillan, I. C., & Day, D. L. (1982). Strategic attributes and performance in the BCG matrix—A PIMS-based analysis of industrial product businesses. Academy of Management Journal, 25(3), 510-531.

Hill, C., & Jones, G. (2010). Strategic Management Theory: An Integrated Approach, Ninth Ed. Mason, OH: South-Western, Cengage Learning.

Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), 196-206.

IIBMS. (2015). 7 Effective Steps to Solve Case Study. Retrieved from http://www.iibms.org/c-7-effective-steps-to-solve-case-study/

Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy. If you read nothing else on strategy, read thesebest-selling articles., 71.

Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson education.

Kulkarni, N. (2018). 8 Tips to Help You Prepare for the Case Method. Retrieved from https://www.hbs.edu/mba/blog/post/8-tips-to-help-you-prepare-for-the-case-method

Lin, C., Tsai, H. L., Wu, Y. J., & Kiang, M. (2012). A fuzzy quantitative VRIO-based framework for evaluating organizational activities. Management Decision, 50(8), 1396-1411.

Nixon, J., & Helms, M. M. (2010). Exploring SWOT analysis – where are we now?: A review of academic research from the last decade. Journal of Strategy and Management, 3(3), 215-251.

Panagiotou, G. (2003). Bringing SWOT into Focus. Business Strategy Review, 14(2), 8-10.

Pickton, D. W., & Wright, S. (1998). What's swot in strategic analysis? Strategic Change, 7(2), 101-109.

Porter, M. E. (2001). The value chain and competitive advantage. Understanding Business Processes, 50-66.

Porter, M. E. (1985). Competitive advantage: creating and sustaining superior performance (Vol. 2). New York: Free Press.

Porter, M.E. (1979, March). Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Retrieved July 7, 2016, from https://hbr.org/1979/03/how-competitive-forces-shape-strategy

Rastogi, N., & Trivedi, M. K. (2016). PESTLE Technique–a Tool to Identify External Risks in Construction Projects. International Research Journal of Engineering and Technology (IRJET), 3(1), 384-388.

Rauch, P. (2007). SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. European Journal of Forest Research, 126(3), 413-420.

Warning! This article is only an example and cannot be used for research or reference purposes. If you need help with something similar, please submit your details here .

9416 Students can’t be wrong

PhD Experts

I hope the professor will be delighted by reading my project and I'll get good grades. Thank you!

Nathan Cardwell

The flow of the sentences was smooth in the paper throughout. Now the expert # 432764 is my priority for every my next paper.

Harrison Liam

Beneficial company! They provided me the best quality of work. Extremely professional!

This service is the best option for the college’s students: timely delivery and simply amazing price. I completely beholden to you guys!

Calculate the Price

(approx ~ 0.0 page), total price $0, next articles.

• Shurgard Self Storage: Expansion To Europe, Video Case Analysis
• MAC Development Corp., Video Case Analysis
• Amazon: The Brink Of Bankruptcy Case Analysis
• Rent The Runway Case Analysis
• PunchTab, Inc. Case Analysis
• R&R Case Analysis
• Amazon.com: Going Public Case Analysis
• Staging Two Sided Platforms Case Analysis
• Affinity Labs, Inc. Case Analysis
• Timberland: Commerce And Justice Case Analysis

Previous Articles

• Westfield America Case Analysis
• Woodmere Properties, Inc. Case Analysis
• MAC Development Corp. Case Analysis
• Highlands' Garden Village Case Analysis
• Real Estate Finance: A Technical Note Based On "Bonnie Road" Case Analysis
• Shady Trail Case Analysis
• Via Verde Case Analysis
• DayOne Case Analysis
• Asia Property Ltd. Case Analysis
• Zhulebeno Plaza Case Analysis

Be a great writer or hire a greater one!

Academic writing has no room for errors and mistakes. If you have BIG dreams to score BIG, think out of the box and hire Case48 with BIG enough reputation.

Our Guarantees

Zero plagiarism, best quality, qualified writers, absolute privacy, timely delivery.

Interesting Fact

Most recent surveys suggest that around 76 % students try professional academic writing services at least once in their lifetime!

Allow Our Skilled Essay Writers to Proficiently Finish Your Paper.

We are here to help. Chat with us on WhatsApp for any queries.

Customer Representative

• Harvard Case Studies

Harvard Business Case Studies Solutions – Assignment Help

In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken.

To make a detailed case analysis, student should follow these steps:

STEP 1: Reading Up Harvard Case Study Method Guide:

Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.

Harvard Case Study Solutions

STEP 2: Reading The Zipcar Harvard Case Study:

To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.

porter’s five forces model

When having a fast reading, following points should be noted:

• Nature of organization
• Nature if industry in which organization operates.
• External environment that is effecting organization
• Problems being faced by management
• Identification of communication strategies.
• Any relevant strategy that can be added.
• Control and out-of-control situations.

When reading the case for second time, following points should be considered:

• Decisions needed to be made and the responsible Person to make decision.
• Objectives of the organization and key players in this case.
• The compatibility of objectives. if not, their reconciliations and necessary redefinition.
• Sources and constraints of organization from meeting its objectives.

After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.

STEP 3: Doing The Case Analysis Of Zipcar:

To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.

Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Zipcar and the management of information is needed to be provided. However, introduction should not be longer than 6-7 lines in a paragraph. As the most important objective is to convey the most important message for to the reader.

After introduction, problem statement is defined. In the problem statement, the company’s most important problem and constraints to solve these problems should be define clearly. However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.

STEP 4: SWOT Analysis of the Zipcar HBR Case Solution:

SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. SWOT for Zipcar is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.

• Pest analysis

In the strengths, management should identify the following points exists in the organization:

• Advantages of the organization
• Activities of the company better than competitors.
• Unique resources and low cost resources company have.
• Activities and resources market sees as the company’s strength.
• Unique selling proposition of the company.

WEAKNESSES:

• Improvement that could be done.
• Activities that can be avoided for Zipcar.
• Activities that can be determined as your weakness in the market.
• Factors that can reduce the sales.
• Competitor’s activities that can be seen as your weakness.

OPPORTUNITIES:

• Good opportunities that can be spotted.
• Interesting trends of industry.
• Change in technology and market strategies
• Government policy changes that is related to the company’s field
• Changes in social patterns and lifestyles.
• Local events.

Following points can be identified as a threat to company:

• Company’s facing obstacles.
• Activities of competitors.
• Product and services quality standards
• Threat from changing technologies
• Financial/cash flow problems
• Weakness that threaten the business.

Following points should be considered when applying SWOT to the analysis:

• Precise and verifiable phrases should be sued.
• Prioritize the points under each head, so that management can identify which step has to be taken first.
• Apply the analyses at proposed level. Clear yourself first that on what basis you have to apply SWOT matrix.
• Make sure that points identified should carry itself with strategy formulation process.
• Use particular terms (like USP, Core Competencies Analyses etc.) to get a comprehensive picture of analyses.

STEP 5: PESTEL/ PEST Analysis of Zipcar Case Solution:

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.

Pest analysis is very important and informative.  It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.

To analyze the business objective and its opportunities and threats, following steps should be followed:

• Brainstorm and assumption the changes that should be made to organization. Answer the necessary questions that are related to specific needs of organization
• Analyze the opportunities that would be happen due to the change.
• Analyze the threats and issues that would be caused due to change.
• Perform cost benefit analyses and take the appropriate action.

PEST FACTORS:

• Next political elections and changes that will happen in the country due to these elections
• Strong and powerful political person, his point of view on business policies and their effect on the organization.
• Strength of property rights and law rules. And its ratio with corruption and organized crimes. Changes in these situation and its effects.
• Change in Legislation and taxation effects on the company
• Trend of regulations and deregulations. Effects of change in business regulations
• Timescale of legislative change.
• Other political factors likely to change for Zipcar.

ECONOMICAL:

• Position and current economy trend i.e. growing, stagnant or declining.
• Exchange rates fluctuations and its relation with company.
• Change in Level of customer’s disposable income and its effect.
• Fluctuation in unemployment rate and its effect on hiring of skilled employees
• Access to credit and loans. And its effects on company
• Effect of globalization on economic environment
• Considerations on other economic factors

SOCIO-CULTURAL:

• Change in population growth rate and age factors, and its impacts on organization.
• Effect on organization due to Change in attitudes and generational shifts.
• Standards of health, education and social mobility levels. Its changes and effects on company.
• Employment patterns, job market trend and attitude towards work according to different age groups.

case study solutions

• Social attitudes and social trends, change in socio culture an dits effects.
• Religious believers and life styles and its effects on organization
• Other socio culture factors and its impacts.

TECHNOLOGICAL:

• Any new technology that company is using
• Any new technology in market that could affect the work, organization or industry
• Access of competitors to the new technologies and its impact on their product development/better services.
• Research areas of government and education institutes in which the company can make any efforts
• Changes in infra-structure and its effects on work flow
• Existing technology that can facilitate the company
• Other technological factors and their impacts on company and industry

These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources.

STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Zipcar Case Study:

To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.

porter’s five forces model

These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition. The five forces are discussed below:

• THREAT OF NEW ENTRANTS:
• as the industry have high profits, many new entrants will try to enter into the market. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it is necessary to block the new entrants in the industry. following factors is describing the level of threat to new entrants:
• Barriers to entry that includes copy rights and patents.
• High capital requirement
• Government restricted policies
• Switching cost
• Access to suppliers and distributions
• Customer loyalty to established brands.
• THREAT OF SUBSTITUTES:
• this describes the threat to company. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The potential factors that made customer shift to substitutes are as follows:
• Price performance of substitute
• Switching costs of buyer
• Products substitute available in the market
• Reduction of quality
• Close substitution are available
• DEGREE OF INDUSTRY RIVALRY:
• the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. It will also weaken the company’s position. Following are the potential factors that will influence the company’s competition:
• Competitive advantage
• Continuous innovation
• Sustainable position in competitive advantage
• Level of advertising
• Competitive strategy
• BARGAINING POWER OF BUYERS:
• it deals with the ability of customers to take down the prices. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. The buyer power is high if there are too many alternatives available. And the buyer power is low if there are lesser options of alternatives and switching. Following factors will influence the buying power of customers:
• Bargaining leverage
• Switching cost of a buyer
• Buyer price sensitivity
• Competitive advantage of company’s product
• BARGAINING POWER OF SUPPLIERS:
• this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. The potential factors that effects bargaining power of suppliers are the following:
• Input differentiation
• Impact of cost on differentiation
• Strength of distribution centers
• Input substitute’s availability.

STEP 7: VRIO Analysis of Zipcar:

Vrio analysis for Zipcar case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Therefore, it is necessary to continually review the Zipcar company’s activities and resources values. RARE: the resources of the Zipcar company that are not used by any other company are known as rare. Rare and valuable resources grant much competitive advantages to the firm. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. COSTLY TO IMITATE: the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation. Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, resources should also be perfectly non sustainable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. ORGANIZED TO CAPTURE VALUE: resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. A firm (like Zipcar)  must organize its management systems, processes, policies and strategies to fully utilize the resource’s potential to be valuable, rare and costly to imitate.

STEP 8: Generating Alternatives For Zipcar Case Solution:

After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. To generate the alternative of problem, following things must to be kept in mind:

• Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities.
• as the problem and its solution cannot occur at the same time, it should be described as mutually exclusive
• it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable.
• Student should provide more than one decent solution. Providing two undesirable alternatives to make the other one attractive is not acceptable.

Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company.

STEP 9: Selection Of Alternatives For Zipcar Case Solution:

It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. The criteria’s on which business decisions are to be selected areas under:

• Improve profitability
• Increase sales, market shares, return on investments
• Customer satisfaction
• Brand image
• Corporate mission, vision and strategy
• Resources and capabilities

Alternatives should be measures that which alternative will perform better than other one and the valid reasons. In addition, alternatives should be related to the problem statements and issues described in the case study.

STEP 10: Evaluation Of Alternatives For Zipcar Case Solution:

If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. Best alternative should be selected must be the best when evaluating it on the decision criteria. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints.

STEP 11: Recommendations For Zipcar Case Study (Solution):

There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. The decision that is being taken should be justified and viable for solving the problems.

Smart. Open. Grounded. Inventive. Read our Ideas Made to Matter.

Which program is right for you?

Through intellectual rigor and experiential learning, this full-time, two-year MBA program develops leaders who make a difference in the world.

A rigorous, hands-on program that prepares adaptive problem solvers for premier finance careers.

A 12-month program focused on applying the tools of modern data science, optimization and machine learning to solve real-world business problems.

Earn your MBA and SM in engineering with this transformative two-year program.

Combine an international MBA with a deep dive into management science. A special opportunity for partner and affiliate schools only.

A doctoral program that produces outstanding scholars who are leading in their fields of research.

Bring a business perspective to your technical and quantitative expertise with a bachelor’s degree in management, business analytics, or finance.

A joint program for mid-career professionals that integrates engineering and systems thinking. Earn your master’s degree in engineering and management.

An interdisciplinary program that combines engineering, management, and design, leading to a master’s degree in engineering and management.

Executive Programs

A full-time MBA program for mid-career leaders eager to dedicate one year of discovery for a lifetime of impact.

This 20-month MBA program equips experienced executives to enhance their impact on their organizations and the world.

Non-degree programs for senior executives and high-potential managers.

A non-degree, customizable program for mid-career professionals.

Teaching Resources Library

Robin Chase, Zipcar and an Inconvenient Discovery

Cate Reavis

Deborah L. Ancona

Jul 24, 2014

In October 2000, with just a couple of weeks until the three-month-old car sharing startup closed on its first round of funding, Zipcar co-founder Robin Chase made an alarming discovery: the amount of revenue that Zipcars had generated for the month of September was half of what she estimated. After spending the previous 10 months networking, building a team, overseeing technology development, seeking funding, and otherwise navigating the confusing maze of twists and turns that entrepreneurs face in launching new ventures this was one set-back she was not expecting. The question facing Chase was what could and should she do to set the company on a profitable course, and fast, while safeguarding the company’s developing relationship with its 430 members.

Learning Objectives

To introduce students to the MIT Sloan 4 Capabilities Leadership Framework as a way to evaluate a leader’s strengths and weaknesses; highlight the challenges and trade offs entrepreneurs face in launching new ventures.

Appropriate for the Following Course(s) 

leadership; entrepreneurship

Robin Chase, Zipcar and an Inconvenient Truth 

teaching note*

*TEACHING NOTES AND SUPPLEMENTAL MATERIALS ARE ONLY AVAILABLE TO EDUCATORS WHO HOLD TEACHING POSITIONS AT ACADEMIC INSTITUTIONS.

Notice: Chat with our assignment writers

What'sApp Number +61-2 9191 7405

 [email protected]

GET ASSIGNMENT SERVICES AT LOWEST PRICE

Affordable Online Assignment Writing Services at minimum rate

Get Expert's Help

GET ASSIGNMENT HELP WITH EXPERT PROFESSIONALS

Pick up one of the best professors for your academic papaers

• Zipcar Case Study With Questions And Answers

Zipcar Case Study with Questions and Answers

Do you know what car sharing is? It is a concept that comes as the next stage of carpooling. Carpooling makes sure that you drive only with a full complement of all the passengers, but car sharing makes sure that every single car bought is used to a greater extent and as much as it can. This concept helps families accomplish this with just an only vehicle. People staying at home don’t need to think of buying a new car so that they can be mobile the very next time they want to run out to any grocery shop. As an alternative, they go for a reasonable choice in rental cars with excellent services like Zipcar. If you are looking for a ' Zipcar Case Study with Questions and Answers ' then No1AssignmentHelp.Com is the right place to get a case study writing service with the most experienced Assignment Writers from Australia.

How to Answer Zipcar Case Study Questions?

Zipcar is today’s leading American membership-based car-sharing and rental service organization providing prior reservations to its very own members. It is usually billable by the day or unusual hours. It is an excellent alternative to conventional car rental services. They also share Zipcars in many different states of the USA, UK, and Canada. They also branched out their presence on around two hundred college campuses throughout North America.

Zipcar Case Study Analysis

One can reserve Zipcars by calling them or online too, around the clock, all through a week. You can book a Zip car a few minutes in advance, or you can book it before a year too. This company has firmly placed its position in its service as an affordable alternative to car rental services. In recent times, it has expanded its vehicle task force to include SUVs and many luxury cars. The prices are attractive and very low for hourly-basis reservations. Every single booking offers about 125 free miles, so it is very comfortable for short-distance drives. Insurance policies are also included in the prices for Zipcars.

Advantages of using Zipcar:

• Our zip cars make your travels much more convenient and comfortable all through the way.
• We provide customer-friendly service and are extremely accommodating to the wide-ranging demands of our esteemed customers.
• You can easily reserve these cars online and getting their service would not be a hard thing to do so.
• Now you can proudly say goodbye to the maintenance costs of your very own car.
• You will find more time for yourself as you don’t need to drive carefully, and you can do your work in your traveling time.
• It helps you get rid of the parking hassles and parking costs.
• You will be dropped off at your exact location.
• The most beautiful part of this service is, you can ask for another car if you are not satisfied with the provided car.
• There is a diverse collection of cars available that you can reserve for your personal use. You can get a luxurious car, a small car, a caravan, or even a large truck too.

No1AssignmentHelp.Com- Zipcar Case Study Writing Provider for MBA Students

Some sorts of services involve interviews with the concerned people, providing free quotes by their interests. ' Assignment Help ' is more basic and offers our people the facts of the situation, and you can benefit significantly from the additional knowledge you can gain from taking our Zipcar case study from the best experts. We offer you the apparent way to better your performance through our Assignment Help Services in Australia , and in the end, we bring you the success you always wanted to taste.

Related Pages: Case Study Assignment Help

Student's Say

Thanks for delivering the economics assignment on time. Due to my part-time job, I was unable to do the assignment by myself but my friend sent me a link to your website, I ordered and got the assignment.

My friend recommended me this website and he was so confident about the services of My Assignment services. I didn't want to fall short of grades. Luckily, I relied upon my friend and agreed to get a

This is the cost effective website because they provide free samples and live one on one session although they provide a samples of every topic in a very cheaper rate.

Thanks for delivering the economics assignment on time. Due to my part-time job, I was unable to do the assignment , I ordered and got the assignment.

My friend recommended me this website and he was so confident about the services of My Assignment services. I didn't want to fall short of grades. Luckily, I relied upon my friend and agreed to get assignment.

Thanks to No1AssignmentHelp.Com for supporting in making my dissertation chapter wise.

Hello Students!. Its my pleasure to share my feedback for No 1 Assignment Help team. Thanks to them in helping in my thesis.