International Business for Herts Entering China and tiawan Essay

International Business for Herts Entering Chinese suppliers

eHertz Corporation

Promoting 70 --- International Organization

Chao Gao, Heejin Kim, Minjian Ruan

Table of Content

Exec Summary2

Competitive Analysis4

1 . Competitors4

installment payments on your Competitors' Market5

3. Competitors' Advantage5

5. Competitors' Status6

Environment Analysis6

1 . Economical7

2 . Social/Administrative8

3. Cultural9

4. Geographical10

Financial & Other Risk Assessment10

1 . Financial Analysis10

2 . Additional Risk12

SWOT Analysis12

1 ) Strength12

2 . Weakness13

3. Opportunities13

4. Threats14

Focus on Market14

Promo Strategy15

1 . Pull Strategy15

2 . Push Strategy16

Prices Strategy16

1 . Growing Stage16

2 . Maturity Stage17

Conclusion18

References19

Professional Summary

America car rental organization, Hertz company is going to enter the Chinese market by doing Partnership with eHi Auto Companies Co., Ltd, which is second largest car rental company in China. Through the use of Joint Venture, Hertz and eHi Auto Companies Co., Ltd can take on the initial largest organization, China Vehicle Rental Coalition Inc. and our providers will be competitive in this market. In the environment analysis perspective, GDP of China was 7, 298, 147 mil in 2011 and it has improved continuously, rank as the 2nd following the ALL OF US. Chinese persons think that an auto has become a growing number of important role within their normal life than earlier. So all of us expect which the demand of your rent car will be high. In China and tiawan, having a car is a symbol of position and prosperity so many people want to have a car. Procurment or immediate rentals are excellent alternatives to them. Some companies provide their employees car hire for their business, such as revenue, meeting etc . And when an individual has a car but acquire drunk in get-together, she/he can contact our company to push her/his car instead, named designated-driver services. Eastern tradition emphasizes term " Guanxi” is important for people who do buiness and their your life especially in Cina. So it occurs frequently that is why Hertz does Joint Venture along with eHi Automobile Services Company., Ltd to be aware of Chinese lifestyle, such as " Guanxi” very well. Lastly, geographically China is quantity 3 largest country in the world. When people vacation from this metropolis to another city, it is hard to drive with their very own car as a result of concerned that belongs to them car's overheated engine and various climate and terrain in different location. Regarding SWOT evaluation, our power is that we certainly have various kinds of car model (luxury, economy, cross.. ) and built-in GPS DEVICE, new providers, such as designated-driver services. And Hertz is definitely entering in Chinese industry with enough capital. Weak spot is the barriers caused by cultural and physical distance and brand understanding is quite a bit less high since our key competitor. The opportunity is usually that the car rental market size has increased year after year. The threat is usually transportations just like taxi and train are good substitutes of the services. Each of our target market is definitely travellers, young adults, corporations and weddings. Pertaining to weddings, we all will provide luxury cars pertaining to wedding events, such as photography, parading etc . With regard to marketing promotions strategy, we will use move strategy and push strategy both. We will place many advertisements in newspaper publishers, travelling mag and Internet. And with push strategy, we may have cooperative romantic relationship with significant travel firms in China and tiawan. They will expose our companies in their customers' destination towns. Since we could not the particular early gamer in this market, we can not get benefit from the knowledge curve effect by just placing the price lower than our current cost possibly competitor's price in order to gain industry share. Yet we believe that we can at some point benefit from the experience curve impact in the long run.

Competitive Research

Since the car rental business in China merely starts up, the company doesn't have a large number of competitors. Yet , we do have a major competitor named China Car Rental Cooperation Inc....

Referrals: 1 . http://blogs.worldbank.org/prospects/lewis-turning-point-and-chinas-fdi-prospects

2 . http://english.peopledaily.com.cn/90001/90776/90882/7446361.html

3. http://news.imeigu.com/a/1335338551292.html

4. http://iask.sina.com.cn/b/7057473.html

5. http://www.zuche.com/jsp/aboutUs/companyBrief.jsp?cid=99997

6. http://en.wikipedia.org/wiki/List_of_countries_and_dependencies_by_area

7. http://en.wikipedia.org/wiki/Renminbi#Using_in_minority_region

8. http://www.nytimes.com/2011/02/11/business/global/11yuan.html

9. http://blogs.ft.com/beyond-brics/2011/10/26/the-renminbis-quest-may-be-a-long-one

10. http://www.nasdaq.com/markets/ipos/company/china-auto-rental-holdings-inc-872202-69053