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Analysis The Company Easycar.and History of Create Essay Example

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Analysis The Company Easycar.and History of Create

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This cost cut has been achieved through a combination of four strategies, namely, locational strategy, operational strategy, and informational strategy.At the beginning of the year 2003 among the 55 sites spread in 17 cities across 5 European countries, only 9 were near the airport. The rest were either a railway station or a bus stop. Leasing land to open a site is far costlier near an airport than near a railway station or a bus stop. A larger payment to lease a piece of land will result in larger per unit cost of providing the service, which will reflect in the price band for that particular service (Mintzberg and Lampel, 1998). This goes against the motto of easyCar.com (the company intends to offer the lowest possible price for its service). Therefore in most of the cases opening a site near an airport was rejected. Whenever a site was actually opened near an airport, the organization tried the level best to ensure that this piece of land must be at the airport where land leasing is a bit cheaper. On the other hand, opening a site near the railway station would be far cheaper and again a continuous supply of customers will be ensured. An area near a bus stop was chosen as a preferred region to open a site only because Stelios thought that then with its cheap rate easyCar.com could put a competition to the bus and taxi service and thereby put a bite on their part of the burger. Sites near airports however kept open for longer hours as a plane are expected to come all over the 24 hours. (Lawrence and Solis, 2004)General customers have been benefited from this policy. Keeping open the airport sites 24 hours proved to be very convenient for the passengers arriving at night, good impression on the customer that may lead to the repeated use of the same service.Framing a unique operating strategy is perhaps the key to success for easyCar. Stelios, a truly visionary person, realized that unless the operating cost can be kept to a minimum, customers couldn’t be provided a cheap alternative. Furthermore, Stelios also realized that his organization is at a nascent stage and in order to expand with ease, he has to keep the operational cost and the setup cost of new branches at a minimum. This concept gets well portrayed into the sites of the organization. The so-called office of easyCar.com at almost all the sites is set up within a small garage with some cubicles where easyCar.com

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References

Dudik, E. (2000). Strategic Renaissance, Amacon, New York.

Evens, P. and Wurster, T. (1997) “Strategy and the New Economics of Information”, Harvard Business Review, Sept/Oct.

Hamel, G. (2002), Leading the Revolution, Plume (Penguin Books), New York.

Jarillo, J. C. (1993) Strategic Networks: Creating borderless organizations, Butterworth-Heinemann, Oxford.

Lamb, R. B. (1984), Competitive strategic management, Englewood Cliffs, Prentice-Hall, NJ.

Lawrence, J.J and Solis, L. (2004).easyCar.com.

McKenna, R. (1997) Real time: Preparing for the age of the Never Satisfied Customer, Harvard Business School Press, Boston.

Mintzberg, H. Ahlstrand, B. and Lampel, J. (1998). Strategy Safari : A Guided Tour Through the Wilds of Strategic Management, The Free Press, New York.

Rehfeld, J.E. (1994). Alchemy of a Leader: Combining Western and Japanese Management skills to transform your company, John Whily & Sons, New York.

Shapiro, C. and Varian, H. (1999) Information Rules, Harard Business School Press, Boston.

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preview essay on Analysis The Company Easycar.and History of Create
  • Pages: 12 (3000 words)
  • Document Type: Essay
  • Subject: Business
  • Level: Undergraduate
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