Zipcar Case Study Analysis

Adrianna Dowdy

Professor Jones

Introduction to Buisness-W01

27 January 2016

Case Study Analysis Zipcar

I. Executive Summary

        This article is about a company named Zipcar who was founded by Robin Chase and Antje Danielson. Zipcar is a sophisticated form of car sharing. This company took about 2 years before it really got off the ground and started thriving. The idea was a simple one: provide a low cost, convenient alternative to car ownership for drivers who only need a vehicle for a few hours and not the whole day. The concept was designed to fill the gap between public transportation, taxis, car rentals, and car ownership. Although not a new idea, Zipcar offered a new approach through emerging technologies to make the service viable when it had previously failed. Although many challenges remain, Zipcar was able to revolutionize the car rental model by managing its ecosystem risk, understanding its value chain, and pursuing sustainable growth strategies.

II. Problem (Issue) Statement

        There were many issues and challenges faced when trying to get this company off the ground and thriving. One of the challenges that Chase faced was developing technology that would admit only the confirmed driver to the car and that would also capture usage data when the car was returned. Other challenges were attracting members, getting the funding they needed, getting starter cars, and figuring the cost structure. Another issue was not having the right president for their company. The big issue is that Chase needed a new round of capital funding so that she could scale her business model. These are important issues that help a company thrive and become successful. Although there are two founders for this company I believe the decision maker is Chase because she is fully committed to the venture while, Danielson only spent evenings and weekends on the project. These issues arose because at the time it was a new company just starting out. The decision maker should act immediately on these issues if they want their business to be successful.