EasyCar is one of the companies under the easyGroup brand name created by Stelios Haji-Ioannou. It is the fastest growing car rental company in Europe because it offers value for money. This is achieved by simplifying the car, and passing on the benefits to the customer in the form of a lower price. This low cost car rental idea is not for every consumer. Since the market is segmented into business and leisure travelers easyCar tries to focus all of its efforts to the price sensitive leisure segment. It has taken them two years for easyCar to break even, and Stelios intends to quadruple its sales in the next two years.
Leverage on established brand reputation of easyJet (by easyGroup): EasyCar is a member of the easyGroup brand which first developed the easyJet air carrier. The other companies under the easyGroup umbrella mimic the low cost, no frills business strategy. This business model has been quite successful in the rental car industry, has a presence in the internet café industry, and easyCinema is expected to be launched soon.
Competency of Stellos: Stelios Haji-Ioannou is an entrepreneur who founded easyJet, and has been expanding the easyGroup brand. Stelios is described as a flamboyant entrepreneur who has been aggressive in expanding his brand into many different industries that fit his low cost, no frills business model. Stellos’ excellence is a direct reason of how easyJet broke even after two years of operations.
No agent (disintermediation): EasyCar has been able to maximize the amount of revenue they receive because they deal with the majority of the bookings themselves. For other rental car companies ninety percent of their bookings are made by agents (intermediaries), and these agents require a portion of their sales. EasyCar manages 100% of its rentals so it is able to gain the maximum amount of revenue.
90% utilization of assets: There are three main strategies that easyCar utilizes to gain the...
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