TY  - JOUR
AB  - Considers the competitive strategy of the Channel Tunnel just prior to the time it opened for business in 1994. Focusing specifically on the tunnel's Le Shuttle service for freight and passenger traffic, gives students an opportunity to explore whether Le Shuttle should follow a premium pricing strategy relative to the cross-channel ferries, match the ferries' prices, or undercut the ferries' prices. Following a section on the history of the tunnel's construction, provides an in-depth discussion of the cross-channel ferry business and the Le Shuttle services. Concludes by posing the question: What pricing strategy should Le Shuttle follow?To illustrate the key drivers of price competition in a differentiated products industry: differences in marginal cost; vertical differentiation among competitors; the degree of horizontal differentiation in the market; and the sources and sustainability of competitive advantage.
VL  - 
IS  - 
SN  - 2474-6568
DO  - 10.1108/case.kellogg.2016.000114
UR  - https://doi.org/10.1108/case.kellogg.2016.000114
AU  - Besanko David
AU  - Stori Christopher
AU  - Kalletta Ed
PY  - 2017
Y1  - 2017/01/01
TI  - Eurotunnel versus the Ferries
T2  - Kellogg School of Management Cases
PB  - Kellogg School of Management
SP  - 1
EP  - 17
Y2  - 2024/04/24
ER  -