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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.
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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