Project2 (Global Issues in Business and Economics ) Essay

Project2 (Global Issues in Business and Economics ) - Essay pillow slipThe company designs its operation in such a way that it provides great support to its pricing strategy. in reality it is found that in case of easyCar operation strategy and designing of processes ar 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 term of a contract companies prime locations are situated within the airport complex of all major airports, the secondary and the nigh prime locations of easyCar are situated near train or bus stations where economic travelers are frequently found and where rent are drilld to be quite low. Not lone(prenominal) that, easyCar to a fault does not choose its location within airport complex, given its high cost nature, instead it selects nearby areas of airport fo r its location and thus can offer lower price compared to traditional car lease companies. ( Cateora and Graham, 2007 Saraswat, Nahar, and Karki, 2009) Unlike other traditional companies who focus on building larger and beautifully decorated facilities, lots allowing customers to drive unlimited miles, and arranging a wide rage of cars within the fleet, easyCar generally build undersize 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 enjoyment as each car can be substituted for the other. easyCar also does not allow unlimited driving force 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 custo mers are asked to do a certain jobs like make a print out of the service contract bringing this to the company by their 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 engagement process this company extensively substitute people by technology in order to quash labor costs. ( Cateora and Graham, 2007 Saraswat, Nahar, and Karki, 2009) The product/service in the world(prenominal) competitive market The car rental pains has become very much attractive to the residents and businesses of europium 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 dominance 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 persistence offers the buye rs of its products a sustainable and reasonably priced access to road transportation. Apart from this, this car rental industry also provides 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, still 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 punishing competitor to buses, taxis and trains is its operational