This paper tells that the famous Greek entrepreneur Stelios Haji –Ioannou, the founder of low-cost air carrier easyjet.com (1995), in the same line, founded easyCar.com (2000). The startup capital for easyjet.com was 5 million pound and its success after its initiation as point-to-point flight…
Another year after easyCar was the fastest growing car Rental Company in Europe. Pleased with the exceptional performance of the company, Stelios resorted to an expansion mode. Two new sites each week in 2003-04 were targeted as the goal and to allow fresh inflow of capital, an IPO (Initial Public Offering) policy worth 250 million pounds was planned. At the beginning of the year 2003, easyCar already opened its outlets in 17 cities across five European countries (Lawrence and Solis, 2004).
Stelios is one of the most flamboyant entrepreneurs of Europe picked up the pulse of the European consumers rightly. With the presence of car rental companies like Avis, Europcar, and Hertz, launching a rental car company and making the profit was not an easy task. Stelios realized the necessity of pulling something exceptional out of the scratches. From the very beginning, the emphasis of easyCar.com was to cut operating cost and provide its customers a unique price band in terms of its low level and unmatchable by any other organization operating in the market. Stelios also concentrated on product differentiation, as he understood that a perfect blend of the lower price with higher luxury (Dudik, 2000) could only make easyCar survive in the market. Moreover, the cost cut needs to be done in every aspect.
As mentioned earlier that cost cut and thereby providing the customers a cheaper price is the main business strategy of easyCar.com. 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. ...
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