EasyCar is a European based car rental company that was founded in 2000 by Stelios Haji-Ioannou, a flamboyant self proclaimed cereal entrepreneur from Greece. The company’s mission was to give customers an outstanding value by providing a reliable service at a low price1. To achieve this mission easyCar took a very different approach than the traditional car rental companies in Europe. The main competitors to easyCar were Avis Europe, Europcar, Hertz, and Sixt. The company did everything is could to reduce costs and used technology to operate as efficiently as possible. Steilios’ ultimate goals were for the company to achieve revenues of £100 million and profits of £10 million by the end of 2004 so that he could take easyCar public in 2005. This goal seems lofty considering that in 2002 easyCar only broke even with revenues of £27 million. The pricing strategy for easyCar was to offer rental cars for the lowest prices in the industry. Prices were updated daily based on demand and location and the lowest prices could only be found if booked well in advance. In order to keep costs down easyCar only rented one type of car at each location and did not work with agents. Almost 95% of all car bookings were made through the company’s website with the others made through a phone reservation system that carried a €0.95 per minute charge. EasyCar’s information system calculated expected demand and enabled the company to achieve a utilization rate above 90 percent; this figure was much higher than industry leader Avis Europe’s utilization rate of 68 percent. To further reduce costs the company enacted stiff penalties for returning the car late and for not cleaning the before returning it to the rental office. Some customers complained that... ... middle of paper ... ...simply because it was successful in the airline industry. The plan for such rapid expansion, going from 46 to 180 locations in just two years, could prove to be a dangerous goal. Quick expansion without prior market research of the country a company is trying to enter is also a foolish plan and could lead to disaster. There is no doubt that the company will to need to expand to other locations if it wants to increase revenues, but it should take its time and make the necessary adaptations to increase the chance of success in the new cities. Today, according to easyCar.com, the company operates more than 2400 location in over 60 countries. While the company has not gone public, the low cost strategy appears to be successful. The company has changed its philosophy of only offering one vehicle model at each location; it now offers up to 12 models depending on the city2.
For the first 30 years of the company's existence it enjoyed huge profits from selling only automobile insurance. These large profits were achieved, due in part, to its targeted market which are generally people in the age range of 30-60 who are classified as a low risk "good drivers". The company's structure of selling insurance directly to the customer while providing excellent customer service is also a driving force to its success.
Sedgwick, David. "Pricing Power shifts to suppliers." Automotive News (2012): 2. online. 20 May 2014. .
...ry long and successful history in the airlines industry, which makes it one of the leading airlines in the world. Also, it provides the most comfortable flights and services to its costumers and employees, which makes it unique.
Operating an air - express transportation industry requires large capital investments, and therefore it can impede the entry of new firms into the industry. For one, Airborne has already its own set of aircrafts and even operate its own airport, and it would be hard for a new firm to compete with this.
They have over 11,555 worldwide rental car locations and are at the point where they can cover their short-term liabilities with cash flow from their operations. Hertz’s adjusted earnings per share increased 77.1% meaning that their market value has increased. Their revenues increased by 34%, while they had a cumulative cost savings of $3 billion (Hertz Annual Report, 2013). This demonstrates that Hertz has the financial resources and the access to markets that they need. Hertz has successfully integrated their ExpressRent kiosks in more than 48 markets and their eReturn option for Hertz Gold loyalty program members, in which they have the ability to choose the Hertz ‘Fuel Purchase Value Option’ that lets them automatically buy a full tank at the start of the rental, so they can turn in the car with the gas at any level and not have to worry about filling up on the way to the
As aviation matured, airlines, aircraft manufacturers and airport operators merged into giant corporations. When cries of "monopoly" arose, the conglomerates dismantled.
...aving too many planes booked for a city, or having overlapping flight times would be detrimental to the bottom line. A second issue I see is that Airtran used Boeing 717’s in it’s fleet. Boeing purchased this airframe in the merger of McDonnell Douglas in 1997 and discontinued it’s production in 2006. Once an airframe is no longer produced replacement parts costs can climb. The airframe didn’t see major use as only 156 were produced furthering this problem. It would be advantageous for Airtran to dump these on the market and replace them with 737 models.
Growing globally- Air Canada have the opportunity to grow globally by building their network with different countries and this relationship should be long lasting for more growth.
Lufthansa, one of the world’s biggest airliners, has divisions handing maintenance, catering and air cargo. Since the World War II the airline industry has never earned its cost of capital over the business cycle (Hitt, 2010). Most of the airline companies have either filed for bankruptcy or are being bailed out by their government. Lufthansa had also gone through these tough times, but had resurfaced to become one of the worlds most profitable airline company. The company adapted a transnational strategy, seeking to achieve both global efficiency and local responsiveness. Lufthansa’s monopoly in Germany came to a halt with the creating of the European Union. All the EU member countries become one regional and therefore the European competition became, an increasingly a local competition. Lufthansa created its regional Hubs, to cater for its domestic market. But the availability of substitutes such as bullet trains and the Euro tunnel, made is necessary for Lufthansa to create short traveling time, customizations and quality standards in the region to achieve a competitive advantage. But outside the EU there are no substitute to air travels as such all the flag carriers are competing in the market, the international airline industry is a highly competitive environment. A new force has also emerged in the world of air travel, in the form of three Gulf airlines with jumbo ambitions. Within a decade Dubai’s Emirates, Qatar Airways and Eithad from Abu Dhabi have between them carried the capacity of two hundred million passengers (Micheal, 2010). The company had to go global and therefore adopted the international corporate-level strategy, where Lufthansa will ope...
Its business model is to hire smart, motivated individuals and teach them to run a business by delivering exceptional customer service. Delivering exceptional customer service results in completely satisfied customers and satisfied customers will continue to do business with Enterprise and even tell others about the company, which results in business growth at each of i...
Hertz operates its car rental business through various brands in 145 different countries. Hertz was named, for the thirteenth time, by Travel + Leisure readers as the Best Car Rental Agency (Hertz Annual Report, 2013). Hertz is one of the top companies in the car rental industry by obtaining 18.6% of the market share (IBISWorld, 2014). In addition to the leading position that Hertz has built within its industry, the focus was to add more value offerings while recreating the experience in car rentals across the globe. Hertz employs both growth and competitive strategies to sustain competitiveness.
Moreover, they need new technology to help to reduce time of delivery, for example the pizza made in the store but can be cook in vehicles while delivery thus the customer will receive fresh pizza from oven as well as reduce delivery time. In addition, this is because the driver then to drive fast and broke the rules lead to accident. Hence, they need to improve on the diver safety and regulation, in order to make sure the company reputation is good so, that law suit case is not charge on them. If this happens it will cause a big loss.
Easy Jet has gone international to an extent. ”Push” factors within its existing market are primarily the saturation of the Europe market and its strong competition. The statistics show that people travelling by air has increased tremendously over a year (Holloway, 2000). Asia and North African appears to be attractive new markets for EasyJet to expand and exert its influence. EasyJet entered the European airline industry despite the stiff competition. The competitive factors and attractiveness of the European market can be examined further by use of Yip’s driver of internationalization. YIP’s framework suggests that the internationalization of organization is influenced by drivers of globalization which are: market, government, cost and competitive consideration.
Additionally, deregulation and liberalization has accompanied the globalization of the airline industry, so that companies have had to compete against each other in new markets, as well as to gain entry into new territories. The rise of low cost local and regional airlines has made the competitive environment difficult to maneuver for large, formerly-state-subsidized national carriers. This has resulted in the need for strategic alliances between airlines in order to attempt to protect market shares and profits (Friehe and Curti, n.d.).
Through increased competition, especially Southwest, AirTran is only available mainly in the eastern United States. Customers needing to travel to the western US probably will choose another airline that could create brand loyalty for another airline.