Zip Car Case Study Example | Topics and Well Written Essays - 750 words

Zip Car - Case Study Example The business had a market of people that would enjoy using Zip car. The market was good for those who were able to use the internet and did not have a car available for use at all times. The market for Zip car would target those who did not do a lot of driving throughout the year. It was important for Chase to allow operating costs to be cheaper than the cost of leasing, renting or purchasing a car. By doing this, Chase would entice the targeted market to use Zip cars as a main means of transportation. Funding is a problem for many businesses. Chase, with the help of Danielson, created business plans and presentations that are appropriate for investors. Investors want to see that they are going to receive the money they lent and more. Chase performed the necessary research and gave the investors exactly what they wanted. Seeking a new engineer to create the software was a way to keep cost down and achieve the necessary technology that Zip car needed. A new software engineer costs less than an engineer that has more experience. Little cost cutting techniques like this used by Chase were important for allowing funding to go as far as possible. Zip car had everything lined up to get the business started and seemed as if it could be successful. Question # 2) What is the business model, and how has it changed between Dec. 1999 and May 2000? What do the data from actual operations in September say about how the business model is working? Does this give you comfort or concern? Answer # 2) A business model is important for every business. Business models show the most important part of a business. That part is the businesses numbers. The numbers show everything. If the proper research has been performed and the numbers do not show a potential profit, there is no need to start the business. The business model for Zip car shows the expenses and profit for the company. The business model shows expenses such as leases, insurance, parking