➢The political machine rental industry represents approximately 2,5 billion dollars worth of care annually.
➢The automobile rental industry is super competitive in terms of service and pricing.
There are four major(ip) national car rental companies and many smaller regional companies.
→ The 4 major companies are:
- Hertz with a market grant of 38,9%
- Avis with a market share of 24,1%
- National political machine Rental with a market share of 20,1%:
-> try out prize and service
- Bud explicate Rent-A-Car with a market share of 12%:
-> highest ROE, fastest rate of growth in volume, stress quality and service,
always price lower than Hertz.
→ The smaller regional companies (4,000 in the US) account for a market share of 4,9%, from which two hundred firms are growing, because they are cheaper than the major firms (33%-50% per day), knowing that the cars are elder and there are no frills.
➢It is not easy for tonic firms to enter the car rental market.
Indeed, there are threesome important entry barriers:
- Lack of airport space for car rentals: The “Big 3” (Hertz, Avis and National Car Rental) occupy 90% of the available space, and Hertz accounts already for 40% alone.
-It takes a rotund amount of capital to finance fleets.
-There are a lot of governement controls: price, labor matters, charge card operations, environmental shield and used vehicle sales.
➢Car rentals are located whether in downtown areas or at major airports. They depend highly on the air travel intensity, because 60% of industry revenues (60% $2,5 bn = $1,5 bn) are generated by airport rentals. So, if air travel declines, it will see the car rentals too, what we can see in the example hereunder.
In 1981, a slump in air travel appeared because of the brawn crisis and the lagging economy. As a consequence, car rentals started to fall. This trend...If you want to get a full essay, order it on our website: Ordercustompaper.com
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