Topic > Blablacar Case Study - 1422

The start of the company began in France when the founder of the car sharing company, Frederic Mazzela, and Nicolas Brusson together created covoiturage.fr (the first car pooling company). They renamed the company BlablaCar in 2006. BlaBlaCar already serves many European markets. The company has expanded into Western European and Eastern European countries. Global expansion in Eastern European markets occurred through mergers and acquisitions, while this was not the case for Western Europe. The company already operates in particular countries such as France, Spain, Italy, United Kingdom, Belgium, Luxembourg, Portugal, Poland, Ukraine and Russia. The company had already been present in France and Spain for several years when they began to internationalize the company. There are many competing companies like BBC operating in the car sharing market around the world. The most aggressive competitor is carpooling.com, a German company founded in 2001. The German company already operates in 40 countries (mostly in Europe) and plans to expand into the United States. Furthermore, there are also car sharing companies that only operate nationwide. Global and domestic companies should be considered before making the decision to expand globally. Furthermore, the carpooling market replaces all types of public transport (train, bus, taxi, plane, etc.). The president of SNCF, France's national rail operator, sees BlablaCar as one of the biggest new threats to his company. The BBC expanded into the UK in 2011. The pattern of expansion into Italy occurred in January 2012, when Blablacar acquired PostoinAuto for 12.5 million, the largest car sharing company in Italy at that time. Blablacar hired the founder of PostoinAuto......middle of paper......Italy, Spain, Ukraine, Poland) and expanded successfully. Additionally, there is a potential company, yolyola.com (YY), that can be acquired by establishing takeover. By acquiring yolyola.com, this would give the BBC complete control as competition would be eliminated. Additionally, incumbent YY knows the local market, which would help coordinate global actions. However, the company may face post-acquisition integration issues, political issues and risks (explained in the “Foreign Market: Turkey” section), and high development costs. The decision-making model for expansion into the Turkish market was explained by applying the real issues facing the country. Apparently, there are disadvantages to entering the market. However, the BBC has market experience and this would allow the company to solve problems that arise.