1. Which are the top three characteristics that customers expect from and SUV? Is the low price an advantage or a disadvantage? (Word Count: 41) • High Performance • Enhanced safety and stability • Multi Terrain The low pricing is an added advantage considering the customers reluctance to spend more. This can attract customer as they can pay less but get more than what the competition is giving them.
They were able to apply the core competencies of efficient and effective logistics also known as service, selection, savings and satisfaction from Circuit City to CarMax. Based on the VRIO framework, Circuit City had a competitive advantage which they applied to CarMax strategy. Their VRIO framework was based on efficient and effective logistics along with the 4w business model of service, selection, savings, and satisfaction which was valuable, rare, and difficult to imitate and organized to capture. By maintaining the same core competencies of Circuit City, CarMax has become the leading used car company with Fortune 500 status. 2.
Lotus Rental Car wants to reduce expenses and increase their consumer base by adding new fuel efficient and alternative fuel vehicles to the Lotus fleet if these measures would be profitable. Key problems With the high demand for car rentals, and having more ecologically aware consumers, keeping alternative fuel vehicles in stock has been difficult. Hertz Rental Car Corporation has 4,000 hybrids throughout the United States, rents the hybrids for more money and still has a higher demand than supply. The demand for the hybrids has jumped 40% in the last year. Because of high consumer demand, auto manufacturers do not offer big discounts to commercial accounts.
This is an excellent headline for an ad because it gets your attention, and gets the point across at the same time. Hyundai is stating that the buyer will get excellent value out of their purchase. They will get a car that, in their opinion, looks like a million dollar car. Another benefit to writing $995,005 out in number form is that consumers will look at it and think that the car is really a good value, a discount of $995,005. Which in perspective to a million dollars, is really inexpensive.
Or are they just a social symbol to show your amount of wealth. If you had no financial restrictions which car would you choose? There are two major classes of cars in todays world. They are the luxury cars which are made up mainly of Mercedes and BMW and the economy cars made up mostly of Honda, Toyota, General Motors, and Ford. There is a very larger price difference between these two classes of cars.
When he was younger he planned on creating something for the rich as well for common man that would involve engines. He created the Ford Model T, which was affordable for the poor, and continued to create Model A and other modeled cars (Joans 2010). By the end of World War I half of Americans owned the model T car. The affordable cars like those Ford produced transformed America (Roak et al., 2011). Ford created the automobile industry, which employed thousands of workers and inspired new industries as well (Heritage, 2010).The new industries included but were not limited to: gas stations, mechanics, fast food restaurants drive-ins (pig stands) and motels (A&E, 2006).
The business of Autodistribution consists of trading with automotive spare parts; reaching FF 7.7 billion (33% market share of the independent wholesale segment and 10% market share of the total market in France). The promising corporate figures are backed with steady macro economical (GDP of $1,392.5 bln and GDP per capita of $23,760 in France for 2007) and strong market data (total market in France of $13.3 billion; total market in Germany $15.8 billion and in UK – $6.7 billion). In addition to the attractive financial and economical figures, the time when the deal took place, was one of the best years for the investment funds in France (new funds raised in 1998 grew by 253.5% in comparison with 1997) making investing desirable business, attracting many players. Other advantages of the newly arisen opportunity were the huge retailers’ network of Autodistribution, possibilities for differentiation and cross border expansion and significant potential margin improvement. From that point of view a possible investing in a leading
Executive summary Hertz is the largest international airport and general location Car Rental Company, with around 8,500 corporate and licensee branches in more than 150 countries in the 5 continents. Hertz is the airport market leader car rental brand in the United States market and is represented in 119 main airports in Europe. Furthermore, Hertz has sales and marketing centres in 60 countries which promote their business both locally and internationally. In addition to a very large product and service portfolio such as Hertz Gold Choice, Hertz number 1 Club Gold, NeverLost which is their customised satellite navigation systems, Satellite Radio, they also offer unique range of cars and SUVs categorised under the Adrenaline, Prestige and Green Traveller collections which gives them strong product differentiation competitive advantage. Hertz annual report (2011) In 2008, Hertz has started to diversify its activities by launching various projects known now a days as Hertz on Demand™; renting cars on hourly basis, HERC who provides rental equipment and sells equipment to small entrepreneurs as well as big industrial firms, Hertz Rent To Buy who rents cars to individuals allowing them to test drive the car before buying it, Hertz van Rental and finally Hertz Cinema equipment rental to name some.
Intensity of competitive rivalry: Competitors offer almost the same product or service, such as henz, AVIS ,users switching costs are low; a strategic action, if successful, their income is considerable. It is proved that Zipcar model is very successful. So many similar car rental companies will appear. 2. Discuss the synergy between the business strategy of Zipcar and information technology.
Industry and Competitor’s Analysis The automotive industry is made up of four subsegments namely; the passenger cars, the light commercial vehicles or the sports utility vehicles (SUVs), the Asian utility vehicles (AUVs), the trucks and business segment. The last three subsegments are collectively categorized as commercial vehicles (CVs). Passenger cars account for the biggest share