We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Beacon Car Rental

essay
The whole doc is available only for registered users

A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

Henry was the senior vice president of operations. Tony was the chief marketing officer, and they were talking about Beacon’s latest acquisition—VillageCar. But they seemed to have different opinions on it. The most important thing was—could an auto rental company fully integrate its car-sharing start-up without losing customers? A week later Henry went to Tony’s office and set a paper down on his desk; it was an article from the Journal of Consumer Research which was a study of car-sharing customers. Out of all the things they valued about their experience, the biggest one was access. The environment and community weren’t even on their radar. They cared about affordability and convenience, just like Beacon’s customers do. Functionality was all that matters. According to the experts’ response, they say VillageCar should remain as independent from Beacon as possible.

The two companies have very different business models. A rental is something you use for several days when you go on a business trip or a vacation. A shared car is something you use for a short time to run errands, move a piano, or impress a date. VillageCar’s customers don’t want what Beacon offers. They want flexible access to a car on a regular basis. Henry needs proof that VillageCar solves customers’ problems better than Beacon does and that its business model is profitable and scalable. If that’s not the case, Henry should reconsider the investment and certainly not change Beacon’s business model. Also, keep the VillageCar brand and slowly transform Beacon’s culture to be more like the start-up’s. Eventually Beacon’s brand may become obsolete, but not if there are enough customers who value its uniform service and reliability.

If this segment does become unprofitable, the company can sell it to a firm that still believes in the old school model. The venture should be treated as a partnership, with shared branding—such as “Beacon’s VillageCar.” VillageCar has done an excellent job of connecting with the younger demographic, which is what Beacon is trying to tap into, but Beacon has an established name that is synonymous with experience, stability, resilience, and credibility. In many ways VillageCar’s business is not that different from Beacon’s. But the companies have different purposes and target different audiences. How to handle the VillageCar acquisition is not an easy decision, and Henry has to keep all the immediate financial aspects in mind.

Related Topics

We can write a custom essay

According to Your Specific Requirements

Order an essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59