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Avis Budget Group SWOT and PESTLE Analysis

ID : 52688953| Feb 2023| 10 pages

COMPANY PROFILE -Avis Budget Group

Business Sector :Vehicle Rental Services

Operating Geography :United States, North America, Global

About Avis Budget Group :

Avis Budget Group Inc. engages in the provision of vehicle rentals and car-allocation services. It operates three of the most recognized brands in the industry through its subsidiaries: Avis, Budget and Zipcar. Their brands represent a mobility network of more than 11,000 locations spread over approximately 180 countries. The company’s headquarters are primarily based in Parsippany, New Jersey, establishing an enterprise of almost 30,000 employees as of 2020. Avis Budget group was founded in 1946 by Warren Avis at Willow Run Airport in Detroit with an $85,000 investment and by 1990, Avis established its name worldwide with its Wizard system being implemented in over 2000 locations. The company uses a wide range of technologies in its car rental operations and implements its original system to entirely integrate its platform. Avis Budget Group is additionally invested in leveraging their ‘core experience’, global footprint and data intelligence to develop completely new lines of businesses. Avis Budget Group was bestowed with the title of being the, “World’s Leading Business Car Rental Company” at the World Travel Awards.

Avis Budget Group Inc.’s unique selling proposition or USP lies in it being the leading global provider of mobility solutions. Its mission statement reads, “We’re committed to providing on-demand mobility services for customers, businesses and cities alike.”

Avis Budget Group Revenue :


USD 9,172 million – FY ended 31st December 2019 (y-o-y increase of 0.52%)
USD 9,124 million – FY ended 31st December 2018

Competitive Analysis of Avis Budget Group

SWOT
PESTLE
The SWOT analysis for Avis Budget Group is presented below in a table followed by the detailed analysis report.
StrengthsWeaknesses
1. Leading in digital innovation as the co-founder of Urban Movement Labs
2. Strong portfolio of well-known brands like Avis, Budget and Zipcar
3. Laser-focused on customer safety
4. Connected fleet driving automated business processes and streamlining operations
1. Heavy expenditure on the maintenance, damage and marketing, including the high fleet costs incurred
OpportunitiesThreats
1. Leveraging digital technology for better customer experience through collaborations
2. Expansion to other geographies like Japan and Europe through acquisitions
3. Partnerships with Ride Hail and package delivery providers
1. Impact of Covid-19 pandemic on rental business
2. Aggressive competition resulting in price wars between the industry players
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Detailed SWOT Analysis of Avis Budget Group

Strength

1. Leading in digital innovation as the co-founder of Urban Movement Labs: Avis Budget Group is known as the co-founder of Urban Movement Labs, a public-private partnership intended for accelerating digital innovation in transportation. This partnership is focused on the testing and development of innovative solutions that will address the daily life issues like climate change, technology and workforce development in Los Angeles. Through UML, the company aspires to promote sustainability in transportation by bring in diversity to implement the next-gen mobility solutions. Avis Budget Group affects the lives of nearly two million travellers each year in Los Angeles alone and has made commitments to offer better accessibility through the mobility spectrum of this partnership. UML will act as a digital platform with real transportation solutions, acting as the stage for mobility innovation.

2. Strong portfolio of well-known brands like Avis, Budget and Zipcar: Avis Budget Group is considered as a leading global provider of mobility solutions. It serves the wide markets with the help of its strong portfolio of brands which consists of Avis, Budget and Zipcar, as well as several other brands. The company operates the Avis and Budget brands in nearly 180 countries across the world. These differentiated brands help the company to meet the mobility needs of its customers. Avis and Budget are leading vehicle rental brands positioned to serve the premium and value-conscious segments of the travel industry respectively. The Zipcar brand is a leading car sharing networks which offers an alternative to the traditional vehicle rental and ownership. For the areas where Avis Budget Group does not operate directly, it licenses the use of the Avis, Budget, Zipcar and Payless trademarks to the licensees.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threats

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Major Competitors :

  • Enterprise Holdings
  • Europcar Mobility Group
  • Hertz, Enterprise Rent-A-Car
  • Europcar, MinbilDinbil ,?li>
  • Fmn Rent A Car
  • Omio
  • BookLogic
  • Keyrenter
  • Silvercar
  • Sixt

Major Brands :

  • Avis
  • Budget
  • Zipcar
  • Payless
  • Apex
  • Maggiore
  • Morini Rent
  • Turiscar
  • FranceCars
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References used in Avis Budget Group SWOT & PESTLE Analysis Report

1. Avis Budget Group Announces Role as Founding Partner of Urban Movement Labs, Driving Transportation Innovation in Los Angeles - http://ir.avisbudgetgroup.com/news-releases/news-release-details/avis-budget-group-announces-role-founding-partner-urban-movement
2. Avis Investor Presentation April 2020 - http://ir.avisbudgetgroup.com/static-files/02c0b45f-0400-4cce-be16-8567f926f995
3. Annual Report 2018-A Digitized business for a digital world - http://ir.avisbudgetgroup.com/static-files/a64ef619-46d4-4d54-b086-2e6974240c9e
4. Our company is committed to innovation and moving the future of mobility forward.- https://avisbudgetgroup.com/about/
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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