Case Study Example | Topics and Well Written Essays - 750 words - 1

Case Study Example But there was internal problem of equity shareholding. The funds were limited and they wanted the company to grow. For this Chase approached investors and not bank as there was less cash in their banks. There was positive feedback from the investors. The pricing strategy was the important factor with promotional activity in the US market. The target audience for the company was different in North America. The pricing strategy was difficult. Chase adopted the European model pricing strategy for a while and then customized the pricing strategy to attract more customers. Financing was done from own resources along with convertible loan into shares and this helped to develop the business. They used low cost tactics of marketing. Through word of mouth, free media coverage, public relations and personal guerrilla marketing efforts, tactics were implemented. They used the internet source and website to build huge online customer base for booking in advance from different locations. The conc ept of ownership feeling with the right target customers developed the business in the US. B Business Model The business model has been developed from the Swiss concept of renting the vehicle. The concept was adopted from European market as well. Chase and Danielson had researched in 1999 about the European market, the UK market, the US market and other markets as well to develop its Zipcar business model. Taking the vital aspects of the international markets, Chase and Danielson developed their model which was the US car sharing based model. The operation was conducted first in one city. The successful running of this operation made Chase and Danielson operate the business in 14 cities. This way, they expanded their business. Changes between December 1999 to May 2000 The planning and research was completed in December 1999 and the venture was started in January 2000. There were funding from Chase’s own resources along with that of Danielson. There was limited funding and the overhead costs were to be minimized as they attempted to deliver the service at low cost than the competitors. To expand the business and its operations in other cities, funding was required. For this Chase and Danielson prepared the financial investment plan and were able to attract the investors for financing the business. The business did well during the phase of January - February. After February, finance was provided and their liquidity position was strong enough to manage various overheads, operating costs and they were able to expand the business. Chase developed the infrastructure to launch the operations that were significant to develop the business. Revenues were increased through the membership and there were increase in the customers. This continued even in the month of May 2000. Implications of Actual Operations in September The overhead expenses were increasing and there were problem with the increase in the fuel prices, which increased the operating costs. They were still in the development phase with additional costs in the technical advancement for the service. This increased the cost. There were certain convertible loans raised during this period for the business operations. Comfort or Concern The prevailing scenario was a major