Shurgard Self-Storage: Expansion to Europe - Case Study Example

 Shurgard also had proper management and employees that helped build the company. The managers were educated and dealt with tenants in a proper manner. Good service is important and that can be one of the reasons why Shurgard did so well in the United States. When competition came, Shurgard made necessary changes to help ward off the competition. Using a lighthouse that was noticeable became a trademark for Shurgard. This would help future tenants distinguish between self-storage units. Adding additional services also has proven to be successful.

Besides operating reasons, Shurgard and its founder made important business decisions that grew the company and allowed the company to focus on expansion. Stock for the company was transferred into a single exchange and made available on the New York Stock Exchange. This allowed investors to have a piece of the large self-storage market. 2) How has Shurgard performed in Europe to date? Will they be successful there? Whenever a business has expanded to a different foreign market, there are going to be challenges that arise.

These challenges can range from, market, rules and regulations and investors. As stated in the case, Shurgard has done quite well in the United States and there is a smaller market.  After evaluating Shurgard in Europe, the numbers show that Shurgard has made income and increased rented units. This is all a good sign that Shurgard has performed pretty well since opening the self-storage units in Europe. . These challenges can range from, market, rules and regulations and investors. As stated in the case, Shurgard has done quite well in the United States and there is a smaller market.

After evaluating Shurgard in Europe, the numbers show that Shurgard has made income and increased rented units. This is all a good sign that Shurgard has performed pretty well since opening the self storage units in Europe. They show a steady increase, and a steady rental rate. This is all proves good performance. Since Shurgard has shown an increase in rentals and income, it is likely that Shurgard is going to be successful in Europe. The market for storage units is much larger in Europe than in the United States.

This means that with a large market means that Shurgard should do well in Europe. As long as Shurgard sticks with the same strategies that made Shurgard successful in the United States, Shurgard should be fine. 3) What is your view of the firms’ expansion plans in Europe? Is it realistic to plan for 133 to 170 stores by 2003? What challenges and opportunities will Shurgards’ management face? It is realistic to plan for 133 to 177 stores by 2003. This is realistic because self storage units, as stated in the case, are an investment.

This means that it will take two or more years for the storage unit to earn its full potential. Planning to create more stores is like planning to invest. The only downfall to this is the management. Shurgard will have to train and hire proper management that will be able to manage 133 to 177 stores. This is very important since proper management can build or break a business. 4) The consortium is proposing to invest 122 million euros of equity by 2003 in return for 43% ownership. Is this fair or