Business Level Strategy : Hertz

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Business-level Strategy Hertz operates its car rental business through various brands in 145 different countries. Hertz was named, for the thirteenth time, by Travel + Leisure readers as the Best Car Rental Agency (Hertz Annual Report, 2013). Hertz is one of the top companies in the car rental industry by obtaining 18.6% of the market share (IBISWorld, 2014). In addition to the leading position that Hertz has built within its industry, the focus was to add more value offerings while recreating the experience in car rentals across the globe. Hertz employs both growth and competitive strategies to sustain competitiveness. Growth Strategies I. Internal Growth Strategy · Hertz’s internal growth strategy is market development through creating new product segments, expanding customer bases, and broadening its market presence. Dollar and Thrifty were acquired with the purpose of expanding its customer base to include key travel partners such as AAA, Marriott, Jet Blue, and Orbitz. The “Dream Cars” collection offering high end vehicles focuses on the customers who want to experience luxury through rentals (Hertz Annual Report, 2013). Additionally, Hertz has increased the number of off-airport locations in order to target the local clientele as well. II. External Growth Strategies · Both horizontal integration and joint ventures are utilized to attain growth while remaining competitive in the car rental industry. Hertz purchased Advantage Rent A Car in 2009, which allowed them to grow market share within the price segment globally. In targeting the value-conscious driven leisure traveler Hertz obtained Dollar Thrifty in 2012. In addition Hertz formed Firefly, making it the fourth ... ... middle of paper ... ...tions in car rentals. o Hertz is in over 145 countries. o Established as top car rental company by customer surveys in the United States. o Surveys also reveal consumers rated them with the highest quality service. o Numerous best in class awards (Nationally & Internationally) Miles & Snow Typology · Hertz competes within the analyzer strategy of Miles & Snow typology. Hertz intends to maintain its position as the provider of rental car services with an concentration on service, quality and product innovation. The position is that between prospector and defender as Hertz does not utilize an offensive growth strategy. Instead Hertz seeks new markets in order to remain one of the top car rental companies. Along with the new product offerings and service innovations Hertz is also making renting cars easier with the Hertz Express Rent video kiosks.
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