Case Studies
EASYCAR.COM
EXECUTIVE SUMMARY
Business Summary
EasyCar is a low priced European car rental business founded by easyJet pioneer Stelios Haji-Ioannou. EasyCar had just reached breakeven in 2002 on sales of 27 million [pounds sterling], and had as its goals to reach sales of 100 million [pounds sterling] and profits of 10 million [pounds sterling] by the end of fiscal year 2004 in order to position itself for an initial public offering. To do this would require opening new locations at a rate of two per week and expanding its fleet of rental cars from 7000 to 24,000. The case describes the company's processes and facilities as well as its pricing and promotional strategies. It also describes a number of significant changes that the company has made in the last year, including a move to allow rentals for as little as an hour that was designed to position easyCar as a competitor to local taxis, buses, trains and even car ownership. The case also explores several legal challenges the firm faced, including a ruling that threatened one of the core elements of its business model.
This case study will evaluate easyCar's operations strategy and assess the likelihood that easyCar will be able to achieve its ambitious goals. This case also will provide SWOT analysis to identify marketing strategies that will work and which will not work.
SITUATION ANALYSIS
Perhaps the best way to start the case study is by looking at the general characteristics of service marketing and which of these characteristics are most significant in the case of car rentals. In general, services are characterized by their intangibility, perishability, heterogeneity and simultaneity. But different services vary significantly in the extent to which these characteristics hold.
Intangibility--While strictly speaking, the "service" of car rental is intangible, given the physical nature of the rented vehicle, it really is not as intangible as many other services
EXECUTIVE SUMMARY
Business Summary
EasyCar is a low priced European car rental business founded by easyJet pioneer Stelios Haji-Ioannou. EasyCar had just reached breakeven in 2002 on sales of 27 million [pounds sterling], and had as its goals to reach sales of 100 million [pounds sterling] and profits of 10 million [pounds sterling] by the end of fiscal year 2004 in order to position itself for an initial public offering. To do this would require opening new locations at a rate of two per week and expanding its fleet of rental cars from 7000 to 24,000. The case describes the company's processes and facilities as well as its pricing and promotional strategies. It also describes a number of significant changes that the company has made in the last year, including a move to allow rentals for as little as an hour that was designed to position easyCar as a competitor to local taxis, buses, trains and even car ownership. The case also explores several legal challenges the firm faced, including a ruling that threatened one of the core elements of its business model.
This case study will evaluate easyCar's operations strategy and assess the likelihood that easyCar will be able to achieve its ambitious goals. This case also will provide SWOT analysis to identify marketing strategies that will work and which will not work.
SITUATION ANALYSIS
Perhaps the best way to start the case study is by looking at the general characteristics of service marketing and which of these characteristics are most significant in the case of car rentals. In general, services are characterized by their intangibility, perishability, heterogeneity and simultaneity. But different services vary significantly in the extent to which these characteristics hold.
Intangibility--While strictly speaking, the "service" of car rental is intangible, given the physical nature of the rented vehicle, it really is not as intangible as many other services