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Eurodollar and the European car rental industry in 1989

Author: Cool, Karel O. ; Knuttson, KeithINSEAD Area: StrategyPublisher: Fontainebleau : INSEAD, 1991.Language: EnglishDescription: 29 p.Type of document: INSEAD CaseAbstract: The case 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 EuropePedagogical Objectives: To study the pricing of franchises (i.e. forecasting income streams, negociation of the franchise) to understand industry profitabolity, network effects and their impact on competitive advantage, customer turnover and critical mass
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To study the pricing of franchises (i.e. forecasting income streams, negociation of the franchise) to understand industry profitabolity, network effects and their impact on competitive advantage, customer turnover and critical mass

The case 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

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