Easycar.com: Strategic service system design.
|Author: |Lawrence, John J.; Solis, Luis |
|Article Type: |Case study |
|Geographic Code: |4EUUK |
|Date: |May 1, 2005 |
|Words: |5794 |
|Publication: |Journal of the International Academy for Case Studies |
|ISSN: |1078-4950 |
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EasyCar's approach, built on the easyJet model, was quite different than the approaches used by the traditional rental car companies. EasyCar rented only a single vehicle type at each location it operated, while most of its competitors rented a wide variety of vehicle types. EasyCar did not work with agents--over 95% of its bookings were made through the company's website, with the remainder of bookings being made directly through the company's phone reservation system (at a cost to the customer of 0.95 [euro]/minute for the call). Most rental car companies worked with a variety of intermediaries, with their own websites accounting for less than 10% of their total booking (Click to fly, 2004). And like easyJet, easyCar managed prices in an attempt to have its fleet rented out 100% of the time and to generate the maximum revenue from its rentals. EasyCar's information system constantly evaluated projected demand and expected utilization at each site, and adjusted price accordingly. Because of its aggressive pricing, easyCar was able to achieve a fleet utilization rate in excess of 90% (Simpkins, 2002)--much higher than other major rental car companies. Industry leader Avis Europe, for example, had a fleet utilization rate of 68% (Avis Europe plc, 2002).
It was January, 2003. EasyCar had broken even in the fiscal year ending September 2002 (Simpkins, 2002) on revenues of 27 million [pounds sterling] (Marketing, 2003). This represented a significant improvement
To gain a competitive advantage, most companies tend to implement a brand strategy. What makes easyJet stand out amongst its competitors is their image of a low-budget airline and no-frills services; this brand strategy is simple but strong. EasyJets’ whole company is recognised by their unique orange logo, this color also forms part of the uniform worn by their staff, which in turn is a strong recognised tool by the consumers.
With the BCG Matric analysis, we can argue that Easy Jet enjoys a viable competitive position because of its actual market growth. However, its prices have been compared with those of rival firms. This has clarified that Easy Jet emphasizes on being a low-cost carrier with no surplus in-flight services. Writers such as Quelch & Deshpande (2004, p. 71) argue that the Boston Consulting Group growth/share matrix has offered an opportunity to establish the market share of Easy Jet and the company's growth rate. In the context of the company's low cost market, it is clear that the market is still are still increasing. In addition, with the current fleet volume of 80 aircrafts, Easy Jet can serve 160 routes across Europe. Industry experts have associated such massive penetration with the rise in numbers of passengers and a relative rise in market share. Consequently, it is clear that the company has become a star. Nevertheless, Easy Jet must expand its market share for it to transform into a source of income after the decline of the market's growth rate. With respect to the company's Boston Consulting Group growth/share matrix analysis, we can claim that the cash flow of Easy Jet from operating activities have declined as well as the annual finances. Nevertheless, the acquiring firm's cash flow statement is the main area of focus (Butler &
Enterprise Rent-A-Car has started its operations in 1962 by establishing and successfully developing a new niche in the car renting industry. The business had strictly focused on replacing local citizens’ cars due to repairs. Later on Enterprise started to serve two additional segments, leisure & discretionally rentals and business rentals. Newly launched segments were successful; however the main focus of Enterprise continued to be the initial business stream – the Replacement Rentals. This business section takes up 78% of Enterprise’s resources, which enables the company to capture approximately 55% of the US replacement rentals market share. Yet, the total replacement Rent-A-Car
In this negotiation, I played the role of the buyer of the car, Mazda MX 6 from Francesco, who played the role of the seller. The task involved negotiating for the right price for the used car.
To launch our business we will be partnering with Airbnb, airports, hotels, and businesses. Partnering with Airbnb will allow us to accommodate customers who are looking for a car while they are staying at their Airbnb. Knowing a car will be handy for them to use at their selected destination will allow customers to choose and pick the best place for them to stay and it can all be done easily together when partnering with Airbnb. Partnering with airports will be another way to cater to customers needs. Having airports designate a select area for RIGHTRIDE’S cars will allow traveling customers to know that they will have a car to use while they are in whichever state they are traveling to. Hotels is also another partner that can help our product
MMS Rent-a-Car, based in Atlanta, Georgia, has outlets at major airports and cities throughout North America. Founded by CEO Elena Markum several years ago, it has seen fast growth over the past few years, mainly because it offers quality service, fast, at convenient locations. MMS is highly competitive, able to offer cars at slightly lower rates than its competitors because most of its airport facilities are located near but not at the airport. A keen user of information systems, MMS tracks competitors’ prices, stored in a large data warehouse, through its Web-based
When it comes to providing low cost there are many different strategies easyJet use which help lower its expenses. These strategies are e.g. using the internet for online booking, which reduces distribution costs, it makes an effort to utilise as many aircrafts as possible and making sure the aircrafts are full as possible and flying as much as possible. Another strategy is ticketless travel which reduces the cost printing and other cost related to it. The organisation also reduces cost by not offering free meal during the flight, applying paperless operations as most of their paper work is done online e.g. filing of paper based customer information does not have to be stored in secure places, using economies of scale to lower expenses e.g. buying aircraft , fuel and food all in bulk. Efficient use of airports making sure enough planes are turning over customers, also if the aircrafts are in the hangers and not in service they are still paying the fee to lease the space from the airport authorities. And another good strategy is having few levels of management where they do not have to pay high salary to highly skilled staff.
Budget and Avis are both subsidiaries of Cendant Corp. who bought both companies separately. Although both Avis and Budget were part of Cendant by the end of the year 2002 they operate as separate companies and maintain distinct brand identities. Avis positions itself as a business-friendly rental car company while Budget tries to own the leisure segment. The two brands together operate over 6,000 outlets in the Americas, Australia, New Zealand and the Caribbean. Each rental car company maintains separate advertising campaigns, websites and counters, while combining some "back office" operations to reduce costs.
A mother that left her sick husband and her daughter by themselves because she wanted more out of her life. No one could would take care of the girls father,so she was forced to dropout of school to take care of her father that need his procreation medicine. After awhile taking care of her father,she and her boyfriend wanted to run away from it all in his car. She doesn’t care where they go also long as it’s far away and over the border. As she sees the city light,in her mind she's thinking that both of them will get a job,and that everything will turn out alright in the end.
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àAs a result, the number of user-oriented travel tools on airlines’ direct Web sites increased dramatically in just a few short years. Aggregator Web sites : Such as Expedia.com, Orbitz.com, and Priceline.com A pseudo-competitive position relative to the airlines' own direct Web sites but also offered services beyond flight purchase, including hotel and vacation packages. The airline paid a fee to the
Equipment Rental Market The equipment rental market depends on GDP measures, such as, industrial productivity, and commercial & residential construction. Historically, the market has shown growth of 9.7% and a recent trend of companies renting equipment rather than owning it is expected to continue. The structure of this market is highly competitive, and only few national major players have big roles, RSC, Atlas Copoc Group, and Hertz. Due to the nature of business, concentrated source of revenues, like airport rental for RAC, is impossible and Scale in operation is hard to obtain since customers are widely spread. Unfortunately, price deduction in the business is foreseeable due to the highly competitive market structure.
A key component of the franchise sales model is outsourcing. For this purpose Allegra staff started providing outsourcing services which his franchises can offer for the clients. One of them is web service that clients could use to order variable details, such as business cards, letterhead, forms, brochures, and
Stelios pleased with the expansion of the car company in the second year of existence, even after the first year suffered significant losses the second year was a breakeven year. Stelios had plans of taking the company form making 27 million to100 million I just 2 years. This was a very aggressive goal, which for it to be made the company was opening two stores a week. These store openings may sound aggressive but for the EasyCar Company the store openings were usually located in existing parking lots and because most of the rental work was completed online there were no real office to place in the lot. EasyCar purchased most of the offices as a temporary storage unit with bare essentials.
Easyjet, Plc, has a good competitive advantage as it connects important city-to-city markets in Europe. Easyjet also has one or two market positions at chief airports such as London Gatwick, Geneva, Paris Orly, Paris Charlesde Gaulle, Amsterdam and Milan Malpensa. The company’s market share in European market is about 8% and about 32% in Easyjet’s markets. It has branches in Uk, Amsterdam, France, Switzerland. In Uk the market share of the company is about