International University in Geneva MBA 698 – Case Study Professor:
Pierre-Yves Bénain
Competition in the easyCar.com page C-162 from the book Crafting and Executing Strategy The quest for competitive advantage Concepts and cases 15th edition Authors: Thompson, Strickland, Gamble
Please read the case in advance and perform extra research on the internet if required.
Assignment Questions
1. What is competition like in the Western European rental car industry? What competitive forces have the greatest effect on industry attractiveness from easyCar’s perspective? 2. Do you see any driving forces at work that will alter the Western European car rental industry? If so, are these underlying drivers of change acting to make the industry environment more or less attractive to easyCar and the success of its plans for aggressive growth? 3. What key factors determine the success of a Western European car rental company? 4. What are the key elements of easyCar’s business model? 5. What generic competitive strategy is easyCar employing? What are the benefits and potential weaknesses of the generic strategy easyCar has chosen? Are easyCar’s business model and generic strategy supportive of each other? 6. Is easyCar justified in refusing to allow customers the seven day cancellation window required by the United Kingdom’s Office of Fair Trading? Why or why not?A0What about easyCar’s policy of publicly posting pictures of customers with a rental 15 or more days overdue? Is this justified? Would you rent from easyCar given these terms? 7. What recommendations would you make to enable Stelios to rapidly expand easyCar and to prepare it for an initial public offering of stock in 2004?
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