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International Business for Herts Entering China

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International Business for Herts Entering China
eHertz Corporation

Marketing 70 --- International Business

Chao Gao, Heejin Kim, Minjian Ruan

Table of Content

Executive Summary 2 Competitive Analysis 4 1. Competitors 4 2. Competitors’ Market 5 3. Competitors’ Advantage 5 4. Competitors’ Status 6 Environment Analysis 6 1. Economical 7 2. Social/Administrative 8 3. Cultural 9 4. Geographical 10 Financial & Other Risk Assessment 10 1. Financial Analysis 10 2. Other Risk 12 SWOT Analysis 12 1. Strength 12 2. Weakness 13 3. Opportunities 13 4. Threats 14 Target Market 14 Promotion Strategy 15 1. Pull Strategy 15 2. Push Strategy 16 Pricing Strategy 16 1. Growing Stage 16 2. Maturity Stage 17 Conclusion 18 References 19

Executive Summary
America car rental company, Hertz corporation is going to enter the Chinese market by doing Joint Venture with eHi Auto Services Co., Ltd, which is second largest car rental company in China. By using Joint Venture, Hertz and eHi Auto Services Co., Ltd can compete with the first largest company, China Auto Rental Holdings Inc. and our services will be competitive in this market.
In the environment analysis perspective, GDP of China was 7,298,147 million in 2011 and it has increased continuously, ranking as the second following the US. Chinese people think that a car has become more and more important role in their normal life than past. So we expect that the demand of a rent car will be high. In China, having a car is a symbol of position and wealth so many people want to have a car. Leasing or short-term rentals are good alternatives for them. Some companies provide their employees rental car for their business, such as sales, meeting etc. And when someone has a car but get drunk in get-together, she/he can call our company to drive her/his car instead, called designated-driver service. Eastern culture emphasizes term “Guanxi” is important for business and their life especially in China. So it happens


References: 1. http://blogs.worldbank.org/prospects/lewis-turning-point-and-chinas-fdi-prospects 2. http://english.peopledaily.com.cn/90001/90776/90882/7446361.html 3. http://news.imeigu.com/a/1335338551292.html 4. http://iask.sina.com.cn/b/7057473.html 5. http://www.zuche.com/jsp/aboutUs/companyBrief.jsp?cid=99997 6. http://en.wikipedia.org/wiki/List_of_countries_and_dependencies_by_area 7. http://en.wikipedia.org/wiki/Renminbi#Using_in_minority_region 8. http://www.nytimes.com/2011/02/11/business/global/11yuan.html 9. http://blogs.ft.com/beyond-brics/2011/10/26/the-renminbis-quest-may-be-a-long-one 10. http://www.nasdaq.com/markets/ipos/company/china-auto-rental-holdings-inc-872202-69053
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