1. Values enshrined or preserved by Avis toward the element of its Micro and Macro environment- how does it help to build a sustainable advantage in its operations?
Definition for marketing environment, micro and macro environment?
• What’s the difference between micro and macro environment?
• What is the important thing among those two ?
Some notes help for the answer:
the macro environment can be affected from factors outside the company , micro environment can be affected from factors within the company which affect its internal effectiveness.
The physical environment going to Avis, some issues that affect the environment in general! E.g. using cars that have high pollution or not…? Factors that affect the road safety for example allowing drivers with less experience to drive.
2. A strategic analysis of car rental market using proter’s framework?
Talk about the 5 forces of proter’s .
• Bargaining power of suppliers(1)
• Bargaining power of substitute(2)
• Bargaining power of buyers(3)
• The threats of new entrance(4)
• The rivalry the exist between the firm and industry (5)
Some notes help for the answer:
You need to take each one of these five and apply it to what is going on in the particular Avis company ”case study” for example, the 3rd one “buyers” , do buyers have high or bargaining power? The buyers have high bargaining powers because there is a lot of car rental company to choose so if you do not like Avis you can go to Hertz or others. Therefore you can bargain the price and ask for better price .
The 1st one “suppliers” the supplier is car manufacturers, they have low bargaining power.
The 2nd one, do we have substitute? What’s is the substitute? We have several substitute so this make it difficult for the car rental companies to expand and make them compete with other substitute.
The 4th one, the “threats of entrance”, new entrance can be easily enter the market but not in global scale, however the local company can create huge difficulties for existing big players.
The 5th one “the rivalry”, the rivalry is intense in the market, several types of competitors, global and local players, high level of price competition, its difficult to differentiate you product.
3. What are the strengths, opportunities, weaknesses and threats face by Avis and what type of recommendations emerge from it?
What is the SWOT analysis ? e.g. it’s an opportunity to measure to see what is going on inside the company in terms of the weaknesses, opportunities, strengths, threats.
• Strengths and weaknesses internal environment
• Opportunities and threats external environment
What is the external and internal environment? Than we take each of those 4 and apply it to the existing case ”Avis” e.g.
what is the strength of Avis? 1.strong brand name. 2. Excellent relationship with customers and different organization. 3. Very good global coverage. 4. Very good global structure. 5, company committed to its values. 6. Great bargaining power.
What is the weaknesses of Avis? E.g. high establishment cost , the rest in the case study!!!!
What is the opportunities? 1. Expanding the market to emerge an economies. 2. Expanding the services of existing markets by using the existing IT infstructure to grow.
What is the threats? 1. The emergent of small local car rental companies who can carter to local costumers and at a low price. 2. Inability to differentiate the product using brand or make of recard, make it difficult to avoid price competition. 3. IT and CRM system can easily be adopted by smaller companies so makes it easier for them to hire or adopt the commerce.
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