Find Online Tutors for Homework Help

Easycar com Inspected in the Detail

The market serves two types of consumers, tourists, and business consumers who represent the majority of revenue production, nearly 50/50. The somewhat homogenous nature of the industry, thisbeing streamlined to provide similar services, requires companies to differentiate their products and services in order to gain competitive advantage. For example, EasyCar partnered with Mercedes, thus offering luxury vehicles, as a means to separate itself from the competition and give itself a distinct, differentiated market presence.The tangible structure of this industry determines how service delivery is performed. Fleet volumes and locations dictate the number of consumers that it can serve in a specific period of time, which is either limited or advantageous depending on fleet volumes. For example, EasyCar can service only 10 percent of the volume that Hertz can achieve due to the high disparity between fleet volumes with these two companies. Further, the choice of location for EasyCar and other competitors determines how service can be delivered as some locations have more population volume and thus more customers to be able to serve effectively. The online element of e-commerce also dictates how services are provided with a focus on convenience.By minimizing actual facilities, EasyCar.com can spend this capital on other improvements rather than taking on the high operational costs of facility ownership. By providing online convenience and through the capital reservation, EasyCar maintains significant advantages even over larger competitors. This gives them tremendous pricing advantages over larger competitors such as Avis Europe and Hertz who maintain many facilities that require capital investment.EasyCar also avoids high-priced promotional advertising as a means to preserve capital and thus provide lower costs. The use of posters, promotional merchandise, and cheap guerrilla marketing (the orange suits) are methods of spreading the brand without absorbing high costs. Where Hertz and other companies utilize television advertising that requires significant production and ad-space costs, EasyCar maintains advantages by reducing their marketing costs in a variety of different ways. Only 1.43 million pounds were spent on advertising in 2002.