Eurodollar and the European Car Rental Industry in 1989

Published 01 Jan 1991
Reference 4251
Topic Strategy
Industry Automotive
Region Europe
Summary

Describes the European car rental industry and patterns of competition in the eighties. The focus is on Swan National, the second largest car rental firm in the U.K., which wants to become an international player. It considers acquiring a master franchise from Dollar - Rent A Car of the U.S. to take on the major U.S. car rental firms in Europe.

Teaching objectives

To study the pricing of franchises (ie. forecasting income streams, negotiation of the franchise). Other objectives are understanding industry profitability, network effects and their impact on competitive advantage, customer turnover, critical mass, etc.

Keywords
  • AR1992