Easycar Swot Essay

EasyCar is unity of the companies under the easyGroup provoker make water created by Stelios Haji-Ioannou. It is the fastest growing auto lease company in atomic number 63 because it houses value for money. This is achieved by simplifying the elevator elevator machine, and passing on the bene pits to the guest in the mixture of a blueer price. This low cost car lease idea is not for all consumer. Since the market is segmented into business and leisure travelers easyCar tries to focus all of its efforts to the price raw(a) leisure segment. It has taken them two eld for easyCar to break even, and Stelios intends to quadruple its sales in the next two eld.Swot psychoanalysisStrengthsLeverage on established soil reputation of easyJet (by easyGroup) EasyCar is a member of the easyGroup brand which first get outed the easyJet air carrier. The another(prenominal) companies under the easyGroup umbrella mimic the low cost, no frills business strategy. This business feig n has been quite successful in the rental car industry, has a presence in the internet caf industry, and easyCinema is expected to be launched soon. skill of Stellos Stelios Haji-Ioannou is an entrepreneur who founded easyJet, and has been dilateing 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 honor is a direct reason of how easyJet broke even after two years of operations.No agent (disintermediation) EasyCar has been able to maximise the add of revenue they receive because they get with the majority of the employments themselves. For other rental car companies ninety percent of their bookings ar make by agents (intermediaries), and these agents require a specify of their sales. EasyCar manages 100% of its rentals so it is able to acquire the maximum amount of revenue.90% employ of assets in that respect argon t hree important strategies that easyCar utilizes to gain the highest economic consumption rate fall out of the major car rental companies. Firstly, their development system evaluates projected select, and expected utilization quite accurately, and adjusts price accordingly. Secondly, they only offer one car type on each lot. The customers know that and they result mechanically be matched to any car in the fleet. This removes the risk of decreased utilization as a result of customer choice certain cars over others. Finally, they offer carry based pricing. This ensures that for any given demand the maximum number of cars are rented out.Weaknesses wholly one type of car Having one type of car can overly be seen as a interdict to customers because it offers them no choice. If customers value selection and lumber over price then they go away not rent from easyCar. Process of car take aparting up is time overpowering for customers, given the low staffing levels When a custom er asks to pick up a car they usually have to wait amongst a half bit and an min at the lot to finally pick up their car. This inhibits the companys business leader to sell much in a day, and the customers become dissatisfied from waiting. Public transaction issues regarding its policies The Office of Fair Trading has passed statute stating that easyCar has to grant customers seven days form the time they made a booking to cancel it and receive a adequate refund. The company is scared that this process pull up stakes inhibit their plans for a 2004 IPO.They have in any case received uncool extract from their clean-cut car policy. The company requires the car to be completey cleaned when returned, and its very stern regarding this policy. They have received some bad press, but 85% of their fleet are returned with an acceptable amount of cleanliness. Finally, there are many additional charges that are explained in the fine print. When easyCar first opened they receiv ed a lot of bad press because they didnt explain their costs clearly. lately they have been trying to make their charges more transparent to the customer.OpportunitiesExpand into other European markets Experts of the car rental industry savor that Europe is ripe for consolidation. This is significant since it will allow easyCar to work together in different countries across Europe and get along strengthen its brand.Broaden the fleet size to offer customers more choices To further expand easyCars market share they could offer more selection. Customers value choice, but this is only realistically possible if the prices remain low.Further develop the one hour car rental service provider To compete with local anaesthetic transportation like buses and cabs they can rear citizens of each city who only want to rent a car for an hour or a short amount of time to complete less time consuming tasks.ThreatsLegal Challenges If the company is uneffective to amend the seven day full refund law than there could be serious consequences. The utilization rate would be expected to fall from 90% to 65%, and it could also delay their expected 2004 IPO. There is also legal criticism with the throwaway of peoples faces on the website who have overdue cars. competition There are several internationally recognized car rental companies, and municipal companies that easyCar competes with. For example, domestic or national companies usually account for 50% of their countrys sales. New low cost companies are going to be popping up since they have seen the success of easyCar, thus easyCar of necessity to widen its gap between its competitors.