Project2 (Global Issues in Business and Economics ) Essay

Project2 (Global Issues in Business and Economics ) - Essay Example The company designs its operation in such a way that it provides great support to its pricing strategy. Actually it is found that in case of easyCar operation strategy and designing of processes are aligned with business strategy of the company. Its prime business strategy is to attract customer by offering low price and in order to support this strategy it designs its operation accordingly. For example, it is found that while in cases traditional car rental companies prime locations are situated within the airport complex of all major airports, the secondary and the nearby prime locations of easyCar are situated near train or bus stations where economic travelers are frequently found and where rent are used to be quite low. Not only that, easyCar also does not choose its location within airport complex, given its high cost nature, instead it selects nearby areas of airport for its location and thus can offer lower price compared to traditional car rental companies. ( Cateora and Gra ham, 2007; Saraswat, Nahar, and Karki, 2009) Unlike other traditional companies who focus on building larger and beautifully decorated facilities, often allowing customers to drive unlimited miles, and arranging a wide rage of cars within the fleet, easyCar generally build small and simple facilities in order to keep its cost at a low level. Not only that, it also provides one type of car per site as a result of which maintenance becomes much easier and customer service staff find it much easier to achieve very high rate of utilization as each car can be substituted for the other. easyCar also does not allow unlimited driving which play a major role in keeping costs at low level. ( Cateora and Graham, 2007; Saraswat, Nahar, and Karki, 2009) Customers use to have a very high involvement in the process in case of easyCar in the sense that before returning the car customers are asked to do a certain jobs like making a print out of the service contract bringing this to the company by th eir own, re-fill the car and cleaning it in order to bring it to ready-to-rent condition. All these lower the costs of easyCar. Not only that during the entire booking process this company extensively substitute people by technology in order to reduce labor costs. ( Cateora and Graham, 2007; Saraswat, Nahar, and Karki, 2009) The product/service in the global competitive market: The car rental industry has become very much attractive to the residents and businesses of Europe and America. Although, in less developed economies of Asia and Africa, the product or service has still not achieved a very prominent place in the transportation field, it has potential to become popular in these nation as well in near future for a number of factors. More and more market players will start to operate on a global platform. Actually, this industry offers the buyers of its products a sustainable and reasonably priced access to road transportation. Apart from this, this car rental industry also provi des an opportunity of having an early access to the trials of large varieties of low-carbon means of transport. Not only the residents and business houses, but also the tourists are increasingly becoming dependent on the car rental industry of Europe for their entire traveling schedule. easyCar is a viable competitor to taxis, buses and trains. The major reason that has made a tough competitor to buses, taxis and trains is its operational