CAR RENTAL INDUSTRY

Presented By:
Ankita

Narwal
Manpreet Kaur Nikita Verma Raghav goel Ujjwal Kumar.

INTRODUCTION

Source: http://www.sgcci.in/downloads/Automotive_171109.pdf

THE REASON BEHIND SUCCESS STORY???

Source: http://www.autorentalnews.com/

CHANGES IN DYNAMICS
Chauffer driven to self-driven Santro to Mercedes, SUVs to Limousines. Women Driver (Sakha) Insurance take care by Co Itself. Booking- Personal to Phone to Online

REASON TO GROW
In Developed Countries the growth of car rental Industry is Declining but In developing countries Why?

Poor public transport Lack of proper infrastructure Luxury at affordable price

INDIA A TOURIST HUB

Source: tourism.gov.in

FEW FACTS AND FIGURE

Carzonrent with over 6,400 cars through the country, while the other big players Avis with its 1,400 cars, ITH with a fleet of 600 and ECO Rent A Car with another 800. ITH is the Oldest player

About the company

In 1946 Warren Avis opened the world's first airport car rental location at Willow Run Airport, Detroit, with a grand total of three cars. Today, Avis worldwide operates in over 4,000 locations in 114 countries. Energy, enthusiasm, innovative industry leadership and an ethos of continuous improvement have characterised the company for many years. The company is a wholly owned subsidiary of Avis Budget Group, Inc. (NYSE: CAR). Avis Budget Group has marketing agreements with Avis Europe Plc, a separately owned UK-based company owning or franchising an additional 2,900 Avis locations in Europe, Africa, the Middle East and Asia.

MISSION AND PHILOSOPHY

Their mission is to be the most valued and successful vehicle rental company in our markets, for our customers, our employees and our shareholders and to this end Avis is a dynamic global organization perpetually trying harder and committed to delivering the very highest. Priorities being: Customer satisfaction Cost efficiency Brand leadership Profitable growth Employee satisfaction People development

ENTRY OF AVIS IN INDIA

In 1999, Company Expands into Asia with a Licensee agreement to grow car rental operations into the Japanese market and signs a joint venture agreement with Mercury Car Rentals Ltd. to operate car rental in 9 major cities in India. The launch of services in these cities forms the platform for an aggressive expansion programme for business growth encompassing the major business and leisure centres throughout India. Avis India is a joint venture between The Oberoi Group and Avis Budget Group. It has a fleet of more than 1400 premium cars across India.

PRODUCT & SERVICES OFFERED BY AVIS INDIA Chauffeur Driven Cars Self Drive Cars Events & Conferences Long Term Rentals and Mini Leases Overseas Reservations

RECENT NEWS OF EXPANSION

Car rental Company Avis will invest over Rs 700 crore in India to expand into operating lease service for the corporate sector. Sunil Gupta, CEO of Avis India, said that corporate leasing in India is expected to pick pace in the coming time, prompting the company to enter the segment. Avis India plans to make the investment over the next 3-4 years and will buy 7,000 vehicles on operating lease.

STRENGTHPosition 1. Leading
2. Customer Satisfaction 3. Technology 4. Partnership between Avis and Airlines

Strength

Weakness

Opportunities
1. Expansion of EU 2. Tourism Revival in the UK

S W O T

Overdependence on Debt Market

Threats
1. High Global Oil Prices 2.Internet Rivals 3. Other cheap modes

PORTERS FIVE FORCE

Threat of New Entrants High -Have to take a right move - Low entry barriers
Rivalry among Existing firms High - Existence of predominant players. -Decrease in cost of airine for short haul destination may hamper

Bargain Power of Buyers

High - Customer can compare prices -Existence of rival companies - Best deals online also

Bargain Power of Suppliers.

Medium Main suppliers: Car manufacturers, Airports, Petrol Companies.

Threat Of Substitutes
High -Customers can move to transport with cheaper services - Increasing need for customer ease