Case Study: How car rental companies attempt to achieve growth

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Case Study: How car rental companies attempt to achieve growth

Summary

This case study provides a snapshot of the global car rental market and looks at how the leading market players are expanding. It provides case studies on a number of different strategies including acquisition, fleet expansion, and partnerships.

This case study looks at how leading car rental companies like Enterprise, Hertz, and Europcar and looking to expand. It analyzes their current startegies, providing detail on what they are doing, the rationale for this activity, and potential pitfalls.

Scope

РThree companies represent 95% of the US$30bn car rental market in the US: Enterprise (Enterprise, National, Alamo), Hertz (Hertz, Dollar, Thrifty) and Avis (Avis, Budget, Payless).
– M&A is the most impactful growth strategy, it is a direct method to increase market share. Partnerships and fleet expansion are implemented as a way of creating differentiation.
– The car rental industry is in a transformational period. A change in consumer trends and ridesharing services have created significant disruption for traditional rental companies.
– Major companies either now have to introduce their own car sharing services to maintain market share, such as Enterprise’s Car Club, or, adopt other proactive strategies such as realigning fleet sizes with actual demand, a method adopted by Hertz and Avis.

Reasons to buy

– Understand the dynamics of the global car rental market
– Gain an understanding of different growth strategies including: M&A, partnerships, fleet expansion and new technologies.
– Look at real-world company case studies involving the likes of Avis Budget, Enterprise, and Hertz.

Companies Mentioned:
Hertz
Avis
Budget
Dollar
Thrifty
Enterprise
Zipcar
Localiza
Europcar


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