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Easy Car
Easycar.com: Strategic service system design.
|Author: |Lawrence, John J.; Solis, Luis |
|Article Type: |Case study |
|Geographic Code: |4EUUK |
|Date: |May 1, 2005 |
|Words: |5794 |
|Publication: |Journal of the International Academy for Case Studies |
|ISSN: |1078-4950 |

CASE DESCRIPTION

The primary subject matter of this case concerns concepts relating to operations strategy and service system design. Secondary issues examined include the application of production line approaches to service, service quality concepts, and the value of demand management systems to the firm. The case has a difficulty level of four/five. The case was written for an MBA level introductory operations management class. It is also suitable for use in operations strategy or service operations management courses, at either the MBA or senior undergraduate level. The case has been designed to be taught in 75 minutes and is expected to require about two hours of outside preparation.

CASE SYNOPSIS

This case describes the situation faced by easyCar.com at the start of 2003. EasyCar is the low priced European car rental business founded by easyJet pioneer Stelios Haji-Ioannou. EasyCar had just reached breakeven in 2002 on sales of 27 million [pounds sterling], and had as its goals to reach sales of [pounds sterling] 100 million and profits of 10 million [pounds sterling] by the end of fiscal year 2004 in order to position itself for an initial public offering. To do this would require opening new locations at a rate



References: Avis Europe plc (2002). Annual Report. Retrieved 16 August, 2004 from http://ir.avis-europe.com/avis/reports. Bentley, S. (2002, 24 December). The worst mistake of my career, by Stelios, Financial Times, 13. Burt, T. (2002, 30 April). EasyCar agrees to deal with Vauxhall, Financial Times, 24. Campaigning: easyGroup appoints Publicis for easyCar TV advertising brief (2003, 31 January). Financial Times Information Limited. Click to fly (2004, 13 May). The Economist. easyCar.com news release (2002, 2 May). easyCar selects the 'clean your own car ' Vauxhall Corsa, Retrieved 15 January 2003 from http://www.easygroup.co.uk/easyCar/news/main.html. easyCar.com news release (2000, 1 March). easyRentacar uses exclusively Mercedes A-class, Retrieved 15 January 2003 from http://www.easygroup.co.uk/easyCar/news/main.html. easyCar.com news release (2002, 22 April). Stelios brings the Hertz battle to Amsterdam, Retrieved 15 January 2003 from http://www.easygroup.co.uk/easyCar/news/main.html. easyCar set to shake up German car rental market (2002, 22 February). European Intelligence Wire. e-business: Internet fraudsters fail to steal Potter movie 's magic & other news (2002, 19 November). Financial Times Information Limited. Felsted, A. (2002, 11 February), easyCar courts Clio for rental fleet, Financial Times, 26. Haji-Ioannou, S. (2002, 16 November). Letters to the Editor: Costly effect of late car return, Financial Times, 10. Hodgson, N. (2002, 24 September). Stelios plans easycar float, Liverpool Echo, 15. Hookham, M. (2002, 14 November). How Stelios nets return of his cars, Daily Post (Liverpool, UK), 21. Hyde, J. (2002, 7 July). Travel View: Clearing up on the extras, The Observer (UK), 8. Macintosh, J. (2002, 22 November). EasyCar sues OFT amid threat to planned flotation, Financial Times, 4. Marketing: Former eBay UK chief lands top easyCar position (2003, 9 January). Financial Times Information Limited. Marketing Week: Don 't write off the car rental industry (2002, 26 September). Financial Times Information Limited. Marketing Week: easyCar appoints head of European marketing (2003, 9 January). Financial Times Information Limited. Sherwood, B. & Wendlandt, A. (2002, 14 November). easyCar may be in difficulty over naming ploy, Financial Times, 2. Simpkins, E. (2002, 15 December). Stelios isn 't taking it easy. The Sunday Telegraph (UK), 22-23. Stanton, J. (2002, 26 November). The empire that 's easy money," Edinburgh Evening News, 14. The big picture--An interview with Stelios (2003, 16 March). The Sunday Herald (UK), 21-22.

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