2/10/08 Case 3 – Zipcar The key market factors that need to be considered in assessing viability of a commercial opportunity are market body characteristics, competition and profitability. Market body characteristics refer to the size, demographics and general information regarding the market. Essentially what is the target market, how big is it, how do we reach them. Competition refers to other participants attempting to captivate the identified market and answers the question who else is doing it. Profitability answers the question, can we make money. Many great ideas don’t make money. It is important to evaluate whether the concept has the ability to reach the market, the market has the ability to pay and that the business model is reasonable enough to make money. If I were pitching the business plan to venture capitalists I would emphasize the vastness of the market and the fact that it is virtually untouched. I would also focus on the success of the model in European countries. The combination of these factors presents a convincing story as to why and
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