Hertz Case Analysis

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1. Hertz has embraced new and distributive technologies throughout its history in an effort to improve its service offerings and maintain its competitive advantage as the largest car rental operation in the world. One of Hertz’s first utilization of technology in its business happened in the 70s when it launched Worldwide Reservation System and Hertz Data Center to provide 24/7 reservation capabilities. In the next 40 years, Hertz became the first to market with the Computerized Driving Directions service for customers in early 80s, improved its car return experience in the with the Instant Return hand-held computer in late 80s, implemented on-board navigation in the 90s, and launched Hertz On-Demand car sharing service in 2010s. For Hertz, Information technology plays the role of innovation driver. Early in Hertz’s history, the company built competitive advantage in the industry by being an innovator and an early adopter of service enhancing new technologies such as unmanned kiosks and navigation systems. However, as technology innovations become more easily accessible, new business models such as car-sharing arise, further pushing Hertz to quickly adapt to changes and put technology in the center of business strategy. 2. Modern information technologies such as the internet, mobile technologies, and RFID technologies made possible a new form of on demand car sharing service without the traditional middleman and brick and mortar offices. This new model leverages web and mobile reservation systems to provide customers with updated availability and reservation capabilities, utilizes RFID technology to provide seamless access to reserved cars, and a simple drop off return process, all without needing to interact with a live agent. 3. Car sharing business has become a legitimate threat to traditional car rental companies such as Hertz and Avis as it eats into the

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