Easy Car

5909 words 24 pages

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 |

CASE …show more content…

Plans called for a quadrupling of revenues in the next two years in preparation for a planned initial public offering in the second half of 2004. EasyCar's goal was to reach 100 million [pounds sterling]in revenue and 10 million [pounds sterling] in profit for the year 2004. The 100 million [pounds sterling] revenue goal and 10 million [pounds sterling] profit goal were felt necessary to obtain the desired return from an IPO. It was thought that with this level of performance, the company might be worth about 250 million [pounds sterling] (Hodgson, 2002). In order to achieve these financial goals, the company was pushing to open an average of 2 new sites a week through 2003 and 2004 to reach a total of 180 sites by the end of 2004 (Simpkins, 2002).

THE RENTAL CAR INDUSTRY IN WESTERN EUROPE

The Western European rental car industry consisted of many different national markets that were only semi-integrated. While there were many companies that competed within this European rental car industry, a handful of companies held dominant positions, either across a number of national markets or within one or a few national markets. Industry experts saw the sector as ripe for consolidation (Marketing week, 2002). Several international companies--notably Avis, Europcar, and Hertz--had strong positions across most major European

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