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U.S Car Rental Industry

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U.S Car Rental Industry
Overview Report of Car Rental Industry in USA

Table of Contents

Executive Summary 3
Introduction 4
Current Overview of Industry 4
Political, Economical, Social-Cultural, Technological, Legal and Environmental (PESTLE Analysis) 5 Political 5 Economical 5 Social –Cultural 5 Technological 6 Legal 6 Environmental 6
Porters 5 Forces Model 7 Threat of Substitutes 7 Bargaining Power of Suppliers 7 Competitive Rivalry 7 Bargaining Power of Buyers 7 New Entrants 8
Conclusion 8
Bibliography 9-10
Appendices 11-13

Executive Summary

This overview report will assess the structure of the United States Car Rental Industry. An in depth overview of the market in the United States will be reported; including an analysis of the macro and micro environment using Porter’s Five Forces and PESTLE Analysis. The report will also analyse current and future trends or challenges that are affecting the United States Car Rental Industry.

Introduction

Car rental in the 21st century forms an integral part of the global travel and transportation market worldwide. Following a three year slide in revenues and growth the car rental industry in parts is going through a recovery period. The scope within the car rental market industry consists of the leisure, business and insurance replacement and furthermore, looks upon the short term aspect of car rentals.

The main integral aspect of the downfall within the market was due to the impact upon the global financial crisis. This was deem the main challenge faced by the car rental industry as it opposed a negative impact on car rental sales as consumers started cutting down travel cost and looking for cheaper alternatives (Euromonitor International, 2011).

Current Overview of Industry

The car rental industry is a multi-billion dollar sector of the US economy. Alone the US segment of the car rental industry market makes on average $18.5 billion in revenues per year. Today, there is an expanding


Bibliography: Banks. S. 2010: “Current & Future Trends in Automotive Industry”, Oracle [Online] viewed 1st May, 2012 via http://www.oracle.com/us/corporate/profit/opinion/102910-banks-190918.html Broughton Jacobsen. L. A & Mather. M, 2010: “U.S Economic & Social Trends since 2000”, Population Bulletin, Vol.65, No.1 pp 13-14 [Online] Viewed 5th May, 2012 via http://www.prb.org/pdf10/65.1unitedstates.pdf Jensen Lekiu. H, 2011: “The Vast Car Rental Industry Worldwide-Half 3”, Article Dashboard [Online] Viewed 6th May, 2012 via http://www.articledashboard.com/Article/The-Vast-Car-Rental-Industry-Worldwide-Half-3/1288399 Meece Monestime. R. 2006: “The Car Rental Industry”, Ezinarticles [Online] viewed 30th April, 2012 via http://ezinearticles.com/?The-Car-Rental-Industry&id=491218 Pachon Trading Economics, 2012: “United States GDP growth rate” [Online] 1st May, 2012 via http://www.tradingeconomics.com/united-states/gdp-growth United States Department of Labor, 2012: “Unemployment rate changes little (8.1%)”, U.S Appendix 1 Figure 1- Car rental market revenue leaders (Source: Auto Rental News 2012) Figure [ 2 ]- Car Rental Market Shares 2006-2010 (Source: Euromonitor International 2011) Appendix 3 Figure 4-Hybrid Vehicle Market Share and Petrol Prices (Source: GoAuto, 2011) Appendix 5 Figure 5- United States Quarterly Breakdown of GDP Growth Rate (Source: Trading Economics 2012) Appendix 6 Figure 6- Ending 2011 to Beginning 2012 U.S Unemployment Rate (U.S. Bureau Labour Statistics, 2012)
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