The car rental industry is a multi-billion dollar industry of a country economy. The section of this industry averages about $18.5 billion in revenue per year. Nowadays, there are approximately 1.9 million rental vehicles that support the US section of the marketplace. Additionally, there are lots of rental agencies aside from the industry leaders who subdivide the complete earnings, namely Dollar Thrifty, Budget and Vanguard. Unlike other mature service businesses, the rental car market is highly consolidated which obviously puts potential new comers in a cost-disadvantage because they face high input costs with decreased possibility of economies of scale. For the financial year of 2004, Enterprise generated $7.4 billion in total revenue. Hertz came in 2nd place with roughly $5.2 billion and Avis with $2.97 in earnings.
The Kereta Sewa Area Klang industry faces a complete different environment than it did five decades back. In accordance with business travel news, vehicles are being leased until they have gathered 20,000 to 30,000 miles until they are relegated to the used car industry whereas the turn-around mileage was 12,000 to 15,000 miles five decades back. Due to slow business growth and narrow profit margin, there is not any imminent threat to backward integration within the business. In reality, one of the industry players just Hertz is vertically integrated through Ford. There are many factors that shape the competitive landscape of the car rental industry. Competition comes from two chief sources throughout the series. On the holiday customer’s end of the spectrum, competition is fierce not only because the market is saturated and well guarded by business leader Enterprise, but opponents operate at a price disadvantage along with smaller market shares since enterprise has established a network of traders over 90 percent the leisure section.
On the corporate section, on the other hand, competition is extremely strong at the airports because that section is under tight supervision. Since the industry underwent an enormous economic downfall in recent decades, it has updated the scale of competition within the majority of the businesses that survived. Within the past five years, most companies have been working towards improving their fleet sizes and raising the level of profitability. Over the course of the next several years, the industry is expected to experience accelerated growth valued at $20.89 billion annually after 2008 which equates to a CAGR of 2.7 percent [growth] in the 2003-2008 period.