Rent a Car is a business enterprise that rents automobiles to customers for a short period of time ranging from a few hours to a few weeks for a specific amount of fee. Car Rental companies have a very large network of branches near airports, bus stations, and crowded places to attract customers. Today, we’ll discuss the SWOT analysis of Rent a Car; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of Rent a Car
- Vans
- Trucks
- Motorcycles
- Cars
- Scooters
- Other types of vehicles
Additional Services of Rent a Car
- Child safety seats
- Wifi
- Mobile phones
- Entertainment systems
- GPS navigation systems
- Insurance
Competitors of Rent a Car
- Sixt SE
- Hertz Global Holding
- Avis Budget Group
- ALD SA
- Enterprise Holding Group
- Satco VIP Company
- EasyDrive Car Rental Company
The SWOT analysis of Rent a Car would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s Rent a Car SWOT analysis of Car Rental as a business strategy analysis example company as follows;
Strengths of Rent a Car
Some of the main internal strengths in the Rent a Car SWOT analysis of Car Rental example company as a business strategy analysis are as follows;
Large Network
Car Rental or Rent a Car Enterprise has established a very large network ranging from recognized brands to independent small rental companies. Usually, they have their offices situated in crowded metropolitan areas, bus and train stations, and near airports. It allows them to target the travelers, tourists, and visitors.
Fleet Size
Car Rental or Rent a Car Enterprise needs to maintain a very large fleet of vehicles and automobiles in its portfolio to target various types of customers. Some customers want luxury and comfort, and others want low-cost and budget-friendly vehicles. The large and diversified fleet size of car rental companies helps them to target a wide range of customers with diverse needs and demands.
Convenient
In order to make renting easy and accessible, Car Rental or Rent a Car Enterprise has built its mobile applications and web platforms. They allow customers to book their favorite vehicles before visiting the place; it improves the overall customer satisfaction level as a result.
Tech Integration
Car Rental or Rent a Car Enterprise has integrated its vehicles with various technological tools, equipment, and entertainment systems. It allows them to improve overall customer satisfaction, make their automobiles safe, and track the location of vehicles with a GPS system.
Weaknesses of Rent a Car
Some of the main internal weaknesses in the Rent a Car SWOT analysis example company as business strategy analysis are as follows;
High Maintenance Cost
Car Rental or Rent a Car Enterprise needs to invest a significant amount of capital resources in the maintenance of old and aging automobiles. Their vehicles become expired much sooner than regular vehicles; because they are always running non-stop. Not every driver rides the rental vehicles with care, rather they use it roughly and over-speeding and over-usage would increase the repair and maintenance cost.
Limited Market Presence
Car Rental or Rent a Car Enterprise is easily available in big cities and metropolitan areas. But you can’t find them in the small cities and towns.
Seasonal
Car Rental or Rent a Car Enterprise is heavily reliant on the holiday and festival season when people are traveling and tourists are coming. In the off-season, rental companies don’t find any new clients and serve customers.
Opportunities for Rent a Car
Some of the main available opportunities in the Rent a Car SWOT analysis of Car Rental example company as business strategy analysis are as follows;
Eco-Friendly
The consumer market has become highly cautious about environmentally sustainable trends. Car Rental or Rent a Car Enterprise should include hybrid and electric vehicles to attract the attention of customers. It allows them to attract new customers and increases their sales and profitability.
Strategic Alliance
Car Rental or Rent a Car Enterprise should develop a strategic alliance and partnership with travel agencies, hotels and restaurants, and airports. It allows them to attract potential customers when visitors are checking out the hotels because they need a ride while leaving.
Marketing
Car Rental or Rent a Car Enterprise should run various types of marketing and advertisement campaigns to attract the attention of tourists entering the specific market. The targeted digital marketing campaigns would help them to increase their sales.
Threats to Rent a Car
Some of the main potential threats in the Rent a Car SWOT analysis example company as business strategy analysis are as follows;
Regulations
The government regulations are very strict for the safety of automobiles. Car Rental or Rent a Car Enterprise should regularly update and maintain their automobiles to avoid any type of potential incidents and accidents.
Economic Recession
Car Rental is a luxury because people can easily afford public transport channels and ride-sharing platforms. The trend of shared economy is decreasing the trends and growth of rental vehicle businesses.
Conclusion: Rent a Car SWOT Analysis Example Company | Car Rental SWOT Analysis of Rent a Car |Business Strategy Analysis
After an in-depth study of the swot analysis of Rent a Car Enterprise; we have realized that Car Rental or Rent a Car Enterprise is a growing and profitable business. If you are learning about Rent a Car SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; and external opportunities and threats as brand strategy analysis.
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Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
