2
Case 1
Zipcar is to the rental car business what Apple is to tablets. Zipcar took the age old car rental
Customers pay an annual membership. Then, they reserve and pick up a car from a neighborhood
location when they need it. They can keep it for a couple of hours or for a couple of weeks. They
Chapter 4
1. What environmental factors would make Zipcar an attractive acquisition for Avis?
This is a good case to discuss changing demographics, the increase in Millennials in the
workforce. The Millennials value time over material possession, thus they do not desire large
urban homes with a ½ hour commute each way. Instead many prefer an urban lifestyle and public
transportation. Thus, the need for a car is on the weekends for excursions, and trips to the grocery
store during the week. Zipcar fills this need. The environmental concerns of Millennials and other
that has supported a sharing economy, where possessions are shared versus owned. Again,
Zipcar fills this trend. It also can be a substitute for a second car, in many families a second car
is nice to have but not a necessity. Zipcar provides the benefits of a second car without the cost
of owning it.
There are a couple of factors that must be considered whenever any company acquires another
company. Some of them create a positive impact on the acquired company and some have the
potential to create a negative impact. First, the availability of resources. In most acquisition
situations, a smaller company is being acquired by a larger company. That is the case with Avis
Chapter 6
image.
At first, Zipcar positioned itself around the urban lifestyle and an environmental consciousness
that most urban dwellers shared. The students could expand into numerous other benefits,
including those bulleted in the middle of the case:
owning a car.
I want to save money.
I take public transit but need a car sometimes.
Once in a while, I need a second car.
2. How did Zipcar match the values and beliefs, with the lifestyle?
Chapter 7
Zipcar was developed for a consumer segment but found an application for organizational
markets. Use the organizational buying decisions presented in chapter 7 in the text as a reference
for your answers to the next two questions.
1. What problem does Zipcar solve for an organization?
2. What need does it fulfill?
3. What type of organization could Zipcar best serve?
Chapter 8
1. Evaluate Zipcar based on benefit-based positioning.
The benefit based positioning of providing extra vehicles when they are needed. This expands it
and values. Which is stronger?
There are two ways of looking at t
Teaching Suggestions
Ask students some basic questions to get them thinking about the potential for Zipcar. Ask them
if they own a car. How many miles per month do they drive? What is the length of time in hours
for each car trip or errand? Then ask them how much it costs to own that car including car
payment, gas, insurance, maintenance, and all other car-related expenses. Based on the