Environmental Analysis of Hertz

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Team Report on Hertz and Car Sharing 1 Team Report on Hertz and Car Sharing With Student Permission to Release The Ted Rogers School of Business Management and The G. Raymond Chang School of Continuing Education Principles of Marketing CMKT 100 Section 310 Professor Aaron Dauphinee Sept 20, 2010 Team Report on Hertz and Car Sharing 2 Table of Contents Content Cover Page Table of Contents Executive Summary Competitive Analysis Environmental Scan/PEST Analysis SWOT Analysis Recommendation Appendices A: Competitive Analysis Chart Appendices B: Environmental Scan Analysis/PEST Appendices C: SWOT Analysis Reference List Peer Evaluation Page # 1 2 3 4-5 6-8 9-12 12-13 14-15 16-19 20-21 22-24 Attached Team Report on Hertz and Car Sharing 3 Team Report on Hertz and Car Sharing 4 Executive Summary In this report we will look into whether Hertz should enter the Toronto car sharing market. In our competitive analysis we found that car sharing differs from car renting in that the rates are hourly, there are numerous locations with only a couple of parking spots at each one. The car sharing market in Toronto is fairly new, having been established in 1998 with the launch of Autoshare. While Autoshare is the first mover and fairly spread around the city, they are also a small enough private company that lacks the resources to block a competitor from entering the market. Zipcar’s entrance into Toronto came in 2005 and brought with them the expertise and resources of operating a car sharing company world wide. Despite the presence of a first-mover and a new competitor with large resources, the demand for car sharing is growing at a rapid rate and does not have any barriers to new entrants to take advantage of this fact. Our environmental scan showed that the rising cost of legally mandated auto insurance and the addition of HST to gasoline

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