zipcar hw-1

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California State University, Northridge *

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Business

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Feb 20, 2024

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BA 627 – Zipcar Individual Assignment 1.Briefly describe one direct and one indirect competitor for Zipcar. (10 pts) 2.Create a differential advantage matrix for Zipcar and elaborate on the process and insights you reach. (20 pts) 3.Assume that the average revenue (sales) numbers per car are the same regardless of region. Use case data (hint: Exhibit 1) to fill in the missing two columns in the following BDI table. (15pts; please show your work) Is the BDI number for MA good or bad news for Anita? Explain. (5 pts) Where should Zipcar focus its marketing efforts and why? (5 pts) State % of Brand % of Category BDI MA 28.53 NY 31.10 NJ 5.74 NC 2.31 DC 25.82 MD 3.04 VA 3.46 4.Assume Sal does not return the car and Anita is lost as a customer. What is the financial impact of this customer defection (hint: lost CLV) if she would have otherwise stayed with the firm for another 5 years, with the following average usage pattern under the Occasional Usage Plan in Boston: 2-hour rentals of the Mini each week and one- day rentals of the BMW 325 four times a year? Retention cost for Anita would have been $80 a year in rental coupons. Use a 5.25% annual discount rate for computing the present value of future cash flows 1 and assume a 60% profit margin. (20 pts; please show your work) 5.Devise two specific customer controls (policies) that you would advise Zipcar to implement in order to make sure cars are returned on time and Sal’s actions do not negatively affect Anita (hint: think stick/punishment and carrot/reward). Describe two pros and two cons of each. (10 pts) 6.Imagine you are considering the launch of a high-end motorcycle rental company in Houston, TX today. Estimate your total market potential (in terms of number of customers) via the chain-ratio method – use at least three filters (search for actual stats online) and explain their relevance. (15 pts; please show your work) 1 From basic finance, PV = CF 1 /(1+ r ) + CF 2 /(1+ r )2 + CF 3 /(1+ r )3…, where PV is the present value of the stream of cash flows, CF 1 is the cash flow received in the first year, CF 2 the cash flow in the second year, etc. and r is the discount rate.
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