Submitted by: Submitted by johnmartin
Views: 467
Words: 2606
Pages: 11
Category: Business and Industry
Date Submitted: 04/06/2011 01:42 AM
easyCar.com
I. Market Situation Analysis
A. Market Aggregate Factors
1. Market size
The car rental industry is consisted of many different national markets that were semi-integrated and there is the ripe for consolidation. The rental car market are consists of two broad segments: 1) the tourist / leisure segment, representing somewhere between 45 – 65% of the overall market and the large part of this segment was very price conscious, and 2) the business segment which made up the remaining 35 – 55% of the market and was less price sensitive and more concerned about services, quality, convenience and flexibility. The market is big but several international companies are dominating the market including some local companies who had a strong position in their own region. For example, the 2.5 billion Euros German car rental market is dominated by Sixt, Europcar, Avis and Hertz, while the other 700 smaller companies will share in the remaining 40% of the market. And also in Spain, the 920 million Euros car rental market is dominated by the top five firms, while the other 1,600 smaller companies share the remaining 40% Spanish car rental market. That only shows how big the car rental industry in the Western Europe alone.
2. Growth rate
EasyCar continue to grow since its inception in London on April 20, 2000, opening at least one site a month. Its growth accelerated from May 2002 to January 2003 when they opened 30 new locations, going from 18 sites to a total of 48 sites. The company was also pushing now to open an average of two new sites a week between 2003 and 2004 to reach a total site of 180 and a total vehicle of 24,000 from 7,000 vehicles by the end of 2004.
3. Profitability
EasyCar had reached its breakeven point only on its third year. The fiscal year ending September 2002 shows 27 million pounds revenue, a 46% increase from their 18.5 million pounds revenue that reflects 7.5 million pounds loss for 2001.
4. Stage in the product life cycle...