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Commuter Scooter Case Analysis

Commuter Scooter (CS) was created by a former car engineer Gil Hoffstedt and his daughter Hannah in 2008. Inspired by Jillâ??s need to get around L.A. in traffic, her Dad fashioned a minicar out of a Scooter using a third wheel for additional balance and to create an interior space. Started as a subscription rental service, it has evolved into a monthly subscription service which adults can use by the hour or the day, week or month. Small enough to still be called a scooter, it also is hefty enough that cars will not attempt to infringe on the CSâ??s lane in traffic as is the tendency with motorcycles. It runs on a photovoltaic battery and a backup diesel system. This allows for a very economical ride. The CS has a GPS system to alert riders to the nearest Depot where they can drop off the CS or they can renew use via their onboard GPS system as well. As a startup CS did not have a lot of venture capital. It was basically financed through bootstrapping methods (credit cards, family, second home mortgage etc.).
As they entered the market at the end of 2008 with 20 scooters positioning the first Drop-off area around local colleges, there has been a steady increase in demand. However, CS founders Gil and Hannah both realize that word of mouth and the few advertisements and reviews they have received is really not enough to propel the demand sufficiently to stay in business very long.

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Gil and Hannah Hofstedt have developed a viable alternative that addresses the issues
commuters and the community face. The Commuter Scooter allows those who must work or conduct
business in the city center a means to get around quickly and efficiently, with a benefit of also being
an environmentally friendly option. However, is appears as though the two did not consider other
financing options, as there is no apparent business plan in place. They have a great combination of
a desirable product and service with many benefits. A business plan would allow them to consider
the many aspects of bringing the combined product and service to market.
There are many benefits of designing a thorough business plan. They could research
additional options for production of their product and consider other financing sources, such as a
small business loan. In addition, a well thought out marketing plan ...

Solution Summary

A commuter scooter case analysis is examined.