Case Study Of Hertz's Business Strategy

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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, …show more content…

With product and service initiatives (Hertz Gold Plus Rewards, and NeverLost) as well as unique cars and SUVs offerings through Adrenaline, Prestige, Green Traveler and Dream Car Collections. These initiatives are what set Hertz apart from its competitors. Advantage Rent A Car is the low cost provider and they differentiate through offerings such as high level customer service through technological innovations such as the streamlined rental stations that bring the rental agent closer to the customer making the service experience more individualized. Hertz introduced more than 750 video kiosks featuring a live rental representative that allows customers to talk face-to-face and complete their rentals without waiting in line (Hertz Annual Report, 2013). Furthermore, Hertz set up “Road Trip” retail stores that provide customers with road trip supplies such as food and mobile device accessories. The best-cost strategy aids Hertz in establishing itself as a top competitor while providing its customers quality services and products at relatively low prices in comparison to its

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