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Expert case by Xabi

Car rental market entry strategy

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Case Prompt

The client is CarRentalCo, a global car rental company present on the European and North American markets. In Europe, it is present in most EU countries but has not yet entered the Baltic countries. CarRentalCo has asked us to determine whether or not they should enter the Baltic (Estonia, Latvia and Lithuania being here considered as one market) and, if so, what should their entry strategy be.

Question 1: In the introductory meeting with the European director, he asks you how you plan to approach the problem. Give a brief description of the key areas you want to focus on to analyze the prob

Question 2: Based on the approach presented above, how would you go about conducting the analysis and gathering the information required?

Question 3: What data would you need to determine the equivalent market share CarRentalCo needs to capture in the Baltic to reach the profit target in 3 years?

Based on the various data gathering methods suggested above, we have some data to help with the market entry analysis. CarRentalCo is looking at a net profit target of at least €200k after the initial 3 years.

Question 4: Analyzing the competition of the market and knowing the targets, what should be the best market entry strategy? How?

Question 5: What are the main challenges of the integration?

Question 6: What is your final recommendation to the client?

Further Questions

How much should we pay for this company? How can we ensure we pay a fair price? 

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