The present global recession, enterprise mergers and acquisition, and bankruptcy filings have accelerated the expansion of LPO (Authorized Course of Outsourcing) in India. As a means of insuring profitability, in addition to looking for market shares and stability, most corporations throughout the chain have a common objective that deals with decreasing the level of dependency on the airline business and transferring toward the leisure segment.
As a result of a very noticeable drawback arises when too many or not enough cars can be found, most automotive rental corporations together with Hertz, Enterprise and Avis, use a “pool which is a group of unbiased rental amenities that share a fleet of automobiles.
Due to this fact, it is vitally necessary that value networks are created between giant textile and apparel corporations in India and small scale manufacturers, in order that the marketing muscle of the leading gamers will be utilized for receiving large orders while the bigger gamers then assign the orders to the small-medium enterprises in accordance with their previous document of quality and service.
As the level of profitability will increase, I believe that many of the business leaders together with Enterprise, Hertz and Avis will likely be bounded by the economic and aggressive boundaries of mobility of their strategic groups and new comers could have a better likelihood of infiltrating and realizing success in the automotive rental trade.
There are lots of components that drive competitors throughout the car rental industry. Not like other mature service industries, the rental automobile trade is extremely consolidated which naturally puts potential new comers at a value-drawback since they face excessive input prices with lowered chance of economies of scale.