Pest Analysis On Avis Budget Group, -
December 3rd, 2010
Avis Budget Group, Inc. (NYSE: CAR) operates two of the most recognized brands in the global vehicle rental industry through Avis Rent A Car System, LLC (Avis), Budget Rent A Car System, Inc. (Budget) and Budget Truck Rental, LLC (Budget Truck). Avis is a leading supplier to the premium commercial and leisure segments of the travel industry, and Budget is a leading supplier to price-conscious car rental segments.
Avis Budget Group maintains the leading share of airport car rental revenue and operates the second largest consumer truck rental business in the United States.
Following the decision to dissolve the Cendant company name and split into four separate companies, the vehicle rental division of Cendant became Avis Budget Group in 2006. The company's headquarters are located in Parsippany, New Jersey.
is among the most successful Low-Cost Carriers in Europe. The airline has a ‘no frills’ philosophy that enables it to offer the lowest airfares in Europe by cutting down its costs. This paper analyzes the strategies and the macro-environment of Ryanair. The paper also tackles the strategic development of Ryanair including the influence of the stakeholders on the strategies of the firm. A PEST analysis and Porter’s Five Forces analysis are also presented in order to explore the environment of Ryanair.
based on the case ‘The Low Cost Airline Industry in Europe’ written by David Hodge in 2004. The aim of this paper is to present a case study of one of the leading low-cost airlines in the United Kingdom and in Europe – Ryanair. The author intends to analyze the strategic intent, the strategic development, the competitive strength, the aspirations of the stakeholders, and the business environment of Ryanair. The paper will also present a comparison between Ryanair and Cathay Pacific, one of the premiere airlines in Asia. The paper will be divided in four parts.
The first part will focus on the strategic development of Ryanair. The author will compare and contrast Ryanair’s strategic development with Cathay Pacific’s. The reason why the author chose Cathay Pacific as the airline to be compared with is because of its success in the industry. The author aims to present a contrasting views of the two airlines. Ryanair focuses on the low-fare market while on the other hand, Cathay Pacific has a more diversified business focus. The author inteds to analyze the effectivity of the airlines’ strategies.
The second part of the paper will be a discussion of the current strategies of the company while the third part will analyze the competitive strength of Ryanair in the United Kingdom. In order to analyze the competitive strength of Ryanair, the author will employ Porter’s Value Chain Analysis and PEST Analysis.
The fourth part will discuss aspirations of key stakeholders and how these aspirations affect Ryanair’s strategy. The key stakeholders of the company will be described and their importance to the creation of strategies and the success of the company.
Before discussing the strategic development of Ryanair and Cathay Pacific, it is important to first define what strategy is. Strategy is an area of management that is concerned with the general direction and long-term policy of the business as distinct from short-term tactics and day to day operations. The strategy of business is defined as the long term objectives and the general means by which the business intends to achieve them (Karami 2007). Andrews (1986) defines strategy as a pattern of decisions which represent the unity, coherence and internal consistency of a company’s decisions that position a company in its environment and give the firm its identity, its power to mobilize its strengths, and its likelihood of success in the market place. There are different strategy development methods that are identified by different authors. The strategy development framework that will be used in this paper is the one devised by Johnson and Scholes (1993). According to these authors, a company can approach strategy development in a number of ways:
· Natural Selection View – the organizations are under great environmental pressure and have constantly to adapt to the changes in their environment.
· Planning View – strategy comes about through highly systematized forms of planning.
· Logical Incremental View – an evolutionary step-by-step approach to strategy; it is an adaptive approach but one which is more controlled by the company.
· Cultural View – an approach to strategy based on the experiences, assumptions and beliefs of management over time and which may eventually permeate a whole organization.
· Political View – strategy emerges after a variety of internal battles, in which managers, individuals and groups bargain and trade their interests and information.
· Visionary View – strategy is dominated by one individual, or sometimes a small group, who have a particular vision where the organization can and should be.
· Command View – strategy developed through the direction of an individual or group, but not necessarily through formal planning.
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