Question: Respond to the ZipCar Case

Read the "ZipCar: Refining the Business Model" case located in your course packet from Harvard Business Publishing.

Using what you have learned in class and the case evidence, write a response to the following four questions:

1. Compare and contrast the business model for a traditional car rental agency (Hetrz, Avis, etc.) with the intended business model for ZipCar. In what ways are they similar and in what ways are they different?

2. What changes did ZipCar make to its business model between December 1999 and May 2000?

3. In what ways do the September 2000 operating results align or not align with the intended business model that you identified in question one? (make sure to also look at the additional finance break-out sheet that I have provided)

4. What recommended actions should Chase take as a result of your findings?

Each student should turn in their own write-up, but you are encourage to work with others on this assignment.

Note:Theaim of this assignment is for you to develop an understanding of what the key variables or levers are that the management of ZipCar most focus on and control in order to make the business successful. There is no single right answer, but there are several approaches that can yield insights into the attractiveness of this potential venture. In this case we utilize the financial models to explore the assumptions and results that compromise the business model. It is important to understand that the financial model is not the same thing as the business model, but rather the financial model is an implication of the business model.

As a warning this is a fairly advanced case, some of you will struggle particularly if you have not had other business classes (finance and accounting in particular). Part of our in-class discussion about the case will be at the graduate level, I don't expect your answers to have reached the same level. I will of course take this into consideration when grading. However I want you to do your best to tease out what you think are the elements of ZipCar's business model that will have the biggest impact on its success or failure.

Article: Zipcar: Refining the Business Model (By Myra M. Hart, Michael J. Roberts and Julia Stevens)

Information related to above question is enclosed below:

Attachment:- 76603332.rar

Attachment:- ZipCarAdditionalFinanceSheet.rar