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Avis Singapore Essay

1885 words - 8 pages

> Singapore has a excellent transport system, which is a much more cheaper service with the recent reduction of bus and train fares.
> The off peak car scheme gives Singaporeans more ability to own a car.

> There are low taxi fares in Singapore

> The private car rental scheme allows car owners to rent out their vehicles.

> Singapore is only a small country making it much more efficient to use public transport rather than renting a car to only use for short journeys.

>Petrol prices rise’s


>Owning a car in Singapore requires high maintenance costs, Certificate Of Entitlement, cars also rapidly ...view middle of the document...

Conclusion - Avis Singapore has many strengths, but there main competitors also possess some of their strengths, Avis Singapore are involved in a extremely competitive industry, were the environment has a lot more threats than opportunities and very small room for growth.

Future Growth
The future projected growth is looking like there is going to be a fall in demand for car rental hire because of all the non industry competitors such as public transport and taxi services being more preferred and efficient. Avis still may take more of the market if they make changes that will make them more competitive.

Increasing Market Share

Avis’s 4.4% share market being the 5th largest amount of market percentage of the industry, needs ways to improve its market share, To do this we need to assess the customer’s needs and what the customers want, Try to be unique from other competitors and creating a more powerful identity, They main keys to increasing market share are the price of the services, how the business promotes the company and attracts its customer base, the place where the service is issued and the service itself.

Avis needs to find out who their current customer base is and segment them into various groups based on their level and type of service they used.
Avis will then have an idea of what part of their service is not meeting the standards they have set, if certain cars aren’t being rented and used, Avis might have to think of slightly lowering the price to hire those cars in order to attract people to hire them and get full use of these assets.

An important thing Avis must do is form a bond with its customers to ensure they retain these customers and encourage them to use their service next time they need to rent a car. Avis can’t afford to lose any of their frequent uses to other competitors.

Avis also needs to determine the demographics and size of the market that is currently using and not using their service. This will show Avis what substantial audience’s they aren’t attracting and missing out on. They can then know who their consumers are and who they need to target and how they go about trying to target them.
Avis may want to conduct a consumer preference survey with potential new customers to help them with this task.

Avis could look at how 36% of Singapore’s population are foreigners and assuming that since they most likely won’t be staying long in Singapore there unlikely to purchase cars and will be looking to rent a car when travelling long distances, Avis can try to find away to attract these potential customers. Avis could also consider targeting tourists that have children by having more family cars, as they are the more keen on hiring a car as it is more convenient.

There main focus should still be on Business travellers as they make up the main market for the car rental industry, they can increase their market share in this area by the use of non-substitutable recourses such as...

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