Essays on Car Rental Industry in China Report

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The paper “ Car Rental Industry in China” is a forceful variant of the report on marketing. Even though the global economy experienced a slowdown and recession in recent years, the car rental industry has been growing worldwide. The growth is expected to continue especially in developing economies such as China and India in addition to Australia and the Middle East (Tse, 2010). The industry is more organized in the US, Europe, and Asia Pacific countries as opposed to emerging economies (Tan, 2011). Car rental companies have in the recent past been exploring developing markets such as India, Australia, the Middle East, and China due to the recent economic downturn that has hit many nations in the recent past.

The car rental industry in China dates back to 1990 (Beck, Klobes, and Scherrer, 2005). This was during the Beijing Asian games when the car rental industry was launched to cater to the transportation needs of foreigners. Currently, the Chinese car rental industry is concentrated in Beijing, Guangzhou, Shanghai, and Shenzhen cities. Impact of globalization on the industryGlobalization has seen car rental providers expand their ventures from their country of origin to other countries (Tse, 2010).

This has also stiffened competition within the industry with many players moving to emerge markets such as China (Tan, 2011). As a consequence of globalization, many international car rental firms such as CAGR, Europcar, Hertz, Alama, Budget, and Avis operate in the Chinese car rental market (Beck, Klobes, and Scherrer, 2005). PESTELPESTLE is an abbreviation for Political, Economic, Sociological, Technological, Legal and Environmental factors. PoliticalPolitical factors that can impact business include current and future taxation policies; current and future political support; trade bodies, grants, initiatives and funding; and the effect of worsening relations or wars with certain countries (Tse, 2010).

In China, governmental departments prefer to hire cars rather than buying them for regular use (Lorat, 2009). This implies that the political class in the country supports the use of car rentals.

References

Alder, M. 2010. A Structural Analysis of the German Web Design Industry by Using the Model of Porter's Five Forces. London: GRIN Verlag

Beck, S., Klobes, F., and Scherrer, C. 2005. Surviving Globalization? Perspectives For The German Economic Model. London: Springer

Fleisher, C., and Bensoussan, B. 2007. Business and Competitive Analysis: Effective Application of New and Classic Methods. London: FT Press

Herzog, C. 2010. Strategic Tools in Dynamic Environments: A Framework. London: GRIN Verlag

Ijioui, R., Emmerich, H., and Ceyp, M. 2010. Globalization 2.0: A Roadmap to the Future from Leading Minds. London: Springer

Lorat, N. 2009. Market Audit and Analysis. London: GRIN Verlag

McDavid, R., and Echaore-McDavid, S. 2009. Career Opportunities in Transportation. Sydney: Infobase Publishing

Seth, P. 2006. Successful Tourism: Volume II: Tourism Practices, 5th Ed. Beijing: Sterling Publishers Pvt. Ltd

Tan, Y. 2011. Chinnovation: How Chinese Innovators Are Changing the World. Jakarta: John Wiley & Sons

Tse, E. 2010. The China Strategy: Harnessing the Power of the World's Fastest-Growing Economy. Sydney: Basic Books

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