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Shurgard Self-Storage - Assignment Example

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Shurgard was able to build a successful business model by renting out storage space to people. The business worked very well in the United States due to the fact that Americans are constantly commuting. Approximately 20% of Americans move every year. …
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Shurgard Self-Storage
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Shurgard Self-Storage

Download file to see previous pages... A Shurgard store could be run by one manager and two employees. The business could break even with a 35% occupancy rate. The normal occupancy rate of the business is 85%. When the company opens up a new store it usually takes about two years for the new business unit to reach normal occupancy rates.
b.
The growth of the company in Europe has been slow. The company was handicapped in its ability to expand due to lack of financing resources available. European banks thought there was no need in Europe for rental storage space. The company found an investor which helped the firm open up its first three stores. The company had by 1999 12 stores in Europe. The market acceptance was slow, but Europeans seemed to have the same tendencies of Americans of desiring store space to rent. One of the problems in Europe for the company was that the overhead costs were higher. The labor laws were different in the various European countries. The firm needed a new management teams for each new country, while in the United States the firm would use regional managers for its executive managerial functions.
c.
I think that the original project to expand into Europe was a good initiative that needed to be tested. So far the company has invested with its partners over €120 million in Europe. It needs a lot more money to achieve the phase II expansion plans. ...Download file to see next pagesRead More
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The topic of "Shurgard Self-Storage" is quite popular among the tasks in university. Still, this sample opens a fresh perspective of seeing the issue. I’ll use the idea for my own paper.
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