BMGT7048 Week 12 - exam preparation session

All these ventures were result of Stelios vision to provide no-frills service to customers at a competitive price. easyCar resulted from his observation that cost of renting cars from airports that EasyJet served was a rip-off. Launched in April 2000, easyCar was positioned as the low cost online car hire specialist with its own fleet of car. However, the business hit the wall and easyCar was turned into a brokerage business. It negotiated with other car hire suppliers for a better deal for the consumers. It brokers ‘high 10s of 1,000s’ in traditional rentals every year, compared to larger renters that arrange millions. It turned over £1.4m from £10m worth of transactions it facilitated in the year to September 2013.

easyCinema was Stelios’s answer for asset underutilization in the cinema sector with only one in five seats sold on average. easyCinema would sell tickets at 20p compared to £4.60 at the neighboring cinemas with bring your own popcorn and take your mess with you. However, none of the major film distributors were interested in supplying Stelios when they heard him selling the tickets at 20p per ticket. With large film distributors controlling 90% of the market, Stelios found it hard to deal with these large players and easyCinema failed to take off.

2. What are the four kinds of international strategy based on the balance between global integration and local responsiveness? Using suitable framework critically evaluate Fastjet’s Africa strategy and its challenges.

3. What are the opportunities and challenges of organic and inorganic growth? Critically evaluate how easyGroup has used these strategies to sustain its growth.