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Subject category: Marketing
Authors: John Saunders (Loughborough University); T C Melewar (De Montfort University)
Published in: 1996
Length: 8 pages
Data source: Published sources

Abstract

The subject of this case study is the reaction of ferry companies to the drastic change in the cross-channel travel market caused by the opening of the Channel Tunnel between Folkestone and Calais. Much of the case study is concerned with the burgeoning price war started by P & O''s heavy discounting strategy and how Stena Sealink should position itself to survive in the shrinking and increasingly competitive ferry market. The teaching objectives are: (1) to allow students to apply the pricing concepts and principles presented; (2) to provide insight into European competitors'' strategies in the transportation market; (3) to give the students an opportunity to make some pricing decisions.
Location:
Industry:
Size:
GBP380 million sales, GBP24 million profits
Other setting(s):
1994

About

Abstract

The subject of this case study is the reaction of ferry companies to the drastic change in the cross-channel travel market caused by the opening of the Channel Tunnel between Folkestone and Calais. Much of the case study is concerned with the burgeoning price war started by P & O''s heavy discounting strategy and how Stena Sealink should position itself to survive in the shrinking and increasingly competitive ferry market. The teaching objectives are: (1) to allow students to apply the pricing concepts and principles presented; (2) to provide insight into European competitors'' strategies in the transportation market; (3) to give the students an opportunity to make some pricing decisions.

Settings

Location:
Industry:
Size:
GBP380 million sales, GBP24 million profits
Other setting(s):
1994

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