Business

Questions:

1. What experience gag skills did the Founders bring to Zipcar? How did they divide the
work of running the company? Are you confident in their ability to run a ”new”
company? Why or why not?

2. What was the company’s ”value proposition”, or the compelling reason(s) consumers
would rent a car from Zipcar? How did the company expect to make a profit?

3. What was Chase’s marketing communications approach to consumers? Do you agree
with her strategy? Explain.

4. Look at Exhibits 4 and 5. What changes do you see in the numbers from 1999 to 2000?
Why were these changes made do you think? What conclusions can you draw from the
numbers in Exhibit 5 that gives you confidence or doubt about Zipcar’s future?

5. Chase and Danielson struggled to raise money from friends, family and investors. This
initial money was spent fairly quickly and the founders realized they would need $1.3
million to adequately launch the company. Why so much money? And, why do you think
they had difficulty raising money?

6. Chase must pull together a convincing investor presentation about Zipcar for
Springboard 2000 New England. What are the _5_ key points she should make to attract
potential investors?

7. New companies often face unusual problems compared to mature companies because
they have no history to reference. Looking back on the case study, what were the
unique problems faced by the Founders? How were these problems solved?

8. If you were a potential investor, what additional information would you want about the
company? Would this be a good investment (risk versus reward) if you had the right
information? Why or why not?

9. ”Google” Zipcar and determine from a business articlels) what Avis Rental Car Company
has done with Zipcar since it bought the company in early in 2013. Do you think this was
a good investment for Avis? Why or why not?

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