Computer Maintenance – Computer Repair in Hawaii

Computer Repair Hawaii

Computer Repair Services in Hawaii is not so much different than the mainland, especially on the island of Oahu, but there are a few challenges. Having lived on Oahu over 45 years ago in Ewa Beach, and returning just over 7 years ago, the scene has changed drastically. Things were more rural back then, and of course there was no internet.

In Oahu, people seem to work on one side of the island and work on the other. Since there are only 1 or 2 ways to get around, traffic can be extremely congested, and parking can be a challenge. So while you are looking for a Computer Repair Shop to drop off your computer, or waiting for a Mobile Technician to drive out to you, timing can be a challenge. For some reason, even in Paradise, things can get pretty busy. With that said, I just wanted to put out my two-cents that affect both the customer and the service provider about computer repair in Oahu.

Traffic Challenges

If you live in Waianae, Waialua, Haliewa, or the North Shore, Windward and around Waimanalo, you will have to rely on Mobile Technicians willing to come out to your location, or to drive the distance yourself. The problem with dropping off a sick computer yourself is that most shops open about 9-10am and close at 6pm. You either have to take time off from work, hope traffic is light after getting off work, or just wait until a day off.

For some reason, there are no shops I am aware of in Waianae, Haliewa and all through the North Shore. Shops on the Windward side are scarce as well, but I vaguely hear that there may be a shop out in Kaneohe, but they must not do much advertising. If you have a Macintosh, there is definitely a shop in Kailua, just be aware that not all shops repair both PCs and Macs, and while do mobile technicians.

My Rant About Windward Computer Repair

Concern computer repair for our valued Windward customers, I have to rant a little bit. Windward customers in Kaneohe and Kailua are fiercely loyal to their local businesses, which is a good thing. But when it comes to computer repair and they are looking for a mobile technician, they always want someone who looks closer to where they are, which at first, looks to make sense.

If they call you and you actually have a physical location and provide both in-shop and mobile services, they get hung-up on your shop's physical location even though they are calling for mobile service. The truth is, that they have no idea where the technician is coming from. The technician might already be scheduled to be out in that area for another customer and can easily set an appointment for you as well. They are not just just sitting around at home all day waiting for you to call, so you just can not accumulate where they will be dispatched from. That may sound harsh, but it always surprises me when we spend some valuable time over the phone with a prospective customer, trying to understand their computer problems and comfort them with our solution to their problem, and as soon as we mention that our shop is over the hill on the other side of H3, they start backing out of the conversation almost as if they thought they were doing "us" a favor and say thanks but no-thanks, we'll just call someone a little closer. I do not get it, and even when I can truthfully say that I have a tech in the area already, they do not care. I know other shop owners who get this same response about mobile repair on the Windward side. The fact is that we are happy to serve customers on the Windward side, and we appreciate their loyalty once they finally hire us to repair their computer. But it is a hurdle starting that relationship. I might add that it is a beautiful drive to the Windward side, especially if you get to drive back through the Northshore if you have the time. I always look forward to a good Shrimp Plate lunch from one of my favorite shrimp trucks along the way.

Parking for Mobile Computer Repair Technicians

If your business or home is located in a reliably populated area away from the areas I just mentioned, you'll have plenty of options for both in-shop and onsite computer repair in Oahu. But if you need service in the congested business areas of downtown or Waikiki, parking is a problem. My suggestion is that if you want prompt service, that you provide information to the technician about the most convenient place to park as well as any parking fees (which may be added to your bill). You might even be able to pre-arrange parking in a reserved area for vendors. And lastly, it even helps to know details such as any vehicle height restrictions for parking garages, or detours due to emergency or special events.

Giving Directions

When setting an appointment for mobile service, it is vital that you provide an accurate address and phone number. Many local Hawaii residents prefer to give directions and landmarks than actual addresses, but Mobile Technicians end up learning the island very well and even use GPS devices these days. Some even print out directions with Yahoo or Google before coming out. We would prefer that you just give us your complete address and then maybe a landmark if you live in an obscure hard to find location. We need the address for our invoice anyway. We appreciate the directions, but customers somehow assume we will be driving to their location the same way they do everyday, but the fact is that we might be coming from the other way, and then left become right, and right becomes left and it gets confusing while driving.

Be Sure to Give and Get Correct Phone Numbers

As for your phone number, things happen and we may need to call you. We also like to call before we come out to ensure you'll be home. Fortunately, we are not like the cable companies that tell you they will arrive between 9-5. Mobile Technicians can usually provide you with a 30-60 minute window. But if you have something come up, we would appreciate if you could call us as soon as possible to postpone.

Also, be sure that you know which Computer Repair company you made the appointment with and have their correct number. Many customers call quite a few shops before they choose who they will make their appointment with and get phone numbers mixed up. Some even call us more than once because we have more than one phone number. It gets quite funny hearing the same person calling again, now using a better description of their problem because of talking to us earlier. The problem is that it might get confusing to remember who you chose in the end. Now and then I'll get a person calling us by mistake to cancel an appointment that we never made. Imagine the frustration of the technician when he drave out to your home or business just to find out that you said you called and canceled already, why are you here?

In-Shop vs Onsite Computer Maintenance

This basically boils down to price, turn-around time and convenience. In-shop repair fees are usually flat rate fee based, and takes days to get back, but you will get more thorough service this way. Shops are also more prepared for the extremely difficult problems. With shops, you can just walk-in during normal business hours, although you should call first to get guidance on what to bring. For laptops, you should always bring the AC Adapter (battery charger). For desks, we usually only need the computer itself (no cables or peripherals, although it would not hurt if you bought your CDs).

Onsite service is usually hourly fee based, and may even have a trip charge. Onsite service by nature is by appointment only, but many problems can be diagnosed and repaired within an hour or two. With onsite service, it is critical that you describe your computer problem as well as possible, because if it sounds obvious that it might be a hardware problem, your computer may be a better candidate for in-shop repair. It's already difficult enough to get certain types of parts on island such as motherboards and CPUs at a Computer Store, so you can expect that a Mobile Technician will not have every part needed to fix every computer in their vehicle. Some parts even have to be ordered online and can take a week or so to arrive. Hopefully you can see the complications this may cause with setting another appointment as well as how the technician will bill you for the first and second appointments. It would just be better to bring these problem computers to a shop.

Major Limitations for Mobile Only Technicians

I certainly do not want to knock mobile only technicians, because I got my start that way. But you have to know that these ones can only serve a small finite number of customers in any given day. Many people get attached to their computer guy once trust is established, but it can get frustrating when your trusty Mobile PC Tech can not make it out fast enough. They might even need to take a vacation and when you get a hold of them on their cell phone, you find out they are on the mainland for a week or two. If you can not wait, you have to find someone else.

Mobile repair is limited as well for reasons spelled out in the "In-Shop vs Onsite Computer Maintenance" section above. There are also certain types of maintenance that will never get done onsite due to how long it will take. If I think I have to perform a surface scan on a hard drive just for starters (which can take 2 hours or more in some cases), I almost immediately recommend I take the computer back to the shop to complete at the flat rate. Some computers develop multiple problems and can take 4-5 hours to repair. For one, it will save you on further hourly charges, but it will also help the technician to be on time for other appointments after you, since he probably only allotted 2 hours for your appointment. The complicated part is that a mobile technician may not have a shop to take your computer to, and may only be able to take it to their home. If you are okay with that, then fine, no problem.

I would add that a technician that has both in-shop and onsite experience are the best technicians. For mobile only technicians, it can be hard to get this experience because they will rarely get a customer that is willing to pay a technician to spend 4-5 hours onsite, not to mention having to dedicate their own personal time as well to be there . But if the technician does not ever get the chance to spend time on the real hard problems, it is unlikely that they will ever progress to become a master technician. If you were choosing a doctor for a complicated surgery, how concerned would you be about his or her experience? The answer is obvious.

Anyways, while our computers and online lives might not be life and death situations, we seem dependent on them suddenless. So I hope this insight into both sides of Computer Maintenance and Repair in Hawaii help you make the right decisions when that inevitable computer problem occurs. That way, you can be armed with the insight to make the best choice available for your computer needs.

Life Fitness Treadmill a Great Piece of Exercise Equipment for Users

Life Fitness treadmills have been designed in such a way that they fit well in almost any home. Not only that, but Life Fitness treadmills are also priced to be affordable for most of the people looking for a treadmill and they have all the features that they need in order to get a good workout without having to travel anywhere.

Life Fitness treadmills are being used by numerous world champion athletes, top athletes, military personnel and health club members.

Life Fitness offers two Life Fitness treadmill lines: Life Fitness Cardio and Life Fitness Sport Cardio. There are seven different Life Fitness treadmill options in the first line (T3, T3i, T5, T5i, T7, and T9i/e) and two in the second line.

Life Fitness offers the T-series as a direct descendant of its commercial model series, starting with the standard quality T3, their ‘benchmark’ value model, and topping out with the Life Fitness T9i, recommended by Health Magazine.

Basic treadmills are included in the T3 series of Life Fitness treadmill models. There are two choices in this category viz the T3 and the T3i. Both of these Life Fitness treadmill models offer a large number of features including classic workouts (hill, random, manual), sport training workouts (sport training, 5K sport training, 10K sport training) and EZ Incline TM workouts. Display options on the T3 and T3i models of Life Fitness treadmill include display of elapsed time, distance, speed, incline, heart rate, calories per hour and calories burnt.

Both Life Fitness treadmill models can accommodate speeds up to 10 miles per hour and an incline of 15%. The T3i Life Fitness treadmill includes heart features including Polar Telemetry® and heart rate zone training workouts (cardio, fat burn, heart rate hill, heart rate interval and extreme heart rate). Life Fitness treadmills in the T3 series consist of a 2.5HP motor and supports inclination up to 15%.

Life Fitness treadmills in the T5 series are meant for competitive running. The main difference between a Life Fitness treadmill in the T3 series and the T5 series is that those in the T5 series are capable of speeds up to 12 miles per hour.

The Life Fitness T5 treadmill provides a wide & long walking area and a powerful drive motor. It has a few less programs and a simpler display than the T5i but features the same durable construction throughout.

A Life Fitness treadmill from the T7 line, adds daily training workouts to the package (30-minute walk, 3-mile jog, 45-minute cross-train) and customizable workouts.

Finally, the T9 series of Life Fitness treadmill models additional customizable workouts, speed interval training, pace mode, calories goal, distance goal, and time in zone goal, as well as Life Pulse TM digital heart rate monitoring. The Life Fitness T9i treadmill bears up to 400 pounds weight and features a 5/8 inch 60 x 20 inch belt with cushioned deck, 3.5 inch roller and 4.0HP motor. This treadmill series offers a top speed of 12 MPH, inclines up to 15% and provides readouts/feedbacks. It also provides 16 preset programs as well as six custom memory slots for personal workouts and it monitors heart rate through Ergo hand sensors and a wireless chest strap.

The warranty period on Life Fitness treadmill models is impressive. Life Fitness treadmill provides lifetime warranty on frame and shock absorbers, fifteen years warranty on the motor, three years warranty on electrical and mechanical parts and one year warranty on labor. The Life Fitness T9 treadmill series provides a lifetime warranty on the motor and ten years warranty on electrical and mechanical parts.

A Life Fitness treadmill can get users well on their way to fitness. With the wide variety of workout options available, even on their basic models, users will never be bored. If users are keeping a close eye on their cardiovascular fitness, the heart monitoring available on a Life Fitness treadmill can’t be bet.

A Life Fitness treadmill might be the best treadmill choice for users. If users are going to use a Life Fitness treadmill, they should make sure that they know what they are doing before using it. Users should always make sure that they are very comfortable walking on their Life Fitness treadmill device before they decide to start running. This is always the case no matter what model or style of Life Fitness treadmill they own.

Before buying a Life Fitness treadmill model users should take a look at the different features that are offered with the treadmill model. Users should make sure that the treadmill motor has a high continuous duty rating and has a long warranty.

Life Fitness treadmills have an excellent life span. Some of the popular discount Life Fitness treadmills are model numbers 5500, 8500 and T3i. No matter how strenuous workouts users desire (use of hand weights to tone arms and body while walking/running on the treadmill), Life Fitness treadmills are a great piece of exercise equipment.

California – The Best Center For Careers in Teaching

Over the past few years, the teaching career has become one of the major and most preferred professions in the United States. Many educational institutions and experts predict that in next few years the education industry will need to hire two million new teachers. Today it will not be wrong to state that the industry has gained great importance and was responsible for generating jobs for millions of people in the United States. If we carefully look at the present circumstances of the teacher ratio in various states of the United States, California ranks at the top level. The California's teacher work is the largest in the country, with more than 300,000 public school teachers serving a student population of over 6 million. In fact, California is one of the few states in the United States where teaching is one of the fastest growing careers.

Over the next decade, it is also estimated that public schools in the California will require hiring 195,000 teachers more. Rising student enrollment and an increase in the number of teachers retiring are few factors that have contributed to the growing demand for teachers. Although the state excels in agriculture, manufacturing, aerospace and entertainment, but this "land of golden opportunities" promises to be the most rewarding employment destination for teachers.

The state even offers several opportunities for teachers to find well-paying and satisfying jobs. In addition to this, the state even offers its teachers the highest salies in the nation. The teaching salies in this state have proven to be highly competitive with other professions requiring similar levels of education. According to the recent analysis done by the US Bureau of Labor Statistics, the state's $ 60,426 average elementary to secondary teacher salary is one of the highest in the nation. The following breakdown may further aggravate the salaries range, a teacher can earn in this state:

  • Elementary teacher salary: $ 58,850
  • Middle school teacher salary: $ 60,820
  • Secondary teacher salary: $ 61,970
  • Special education teacher salary: $ 60,306

This career even offers some additional benefits that may come along with being a teacher in any California school. These days many universities have programs that make it easy for teachers to get additional training and certification and the state holds teacher quality as a big factor in the overall effectiveness of their educational system. California teachers enjoy special incentives including bonuses, mortgage assistance and tax breaks. However, it is important to understand that like most states, the number of years of experience and the level of education can have a big impact on the salary of teachers in California as well.

If you are a teacher who likes the idea of ​​year-round sunshine, consider a teacher career in California. Although the employment outlook for teaching largely depends on one's experience, but if you are experienced in a subject that is previously understaffed, the probability of securing a well-paying job or participating in incentive programs can be very good in this state.

The Car Rental Industry

Market Overview

The car rental industry is a multi-billion dollar sector of the US economy. The US segment of the industry averages about $18.5 billion in revenue a year. Today, there are approximately 1.9 million rental vehicles that service the US segment of the market. In addition, there are many rental agencies besides the industry leaders that subdivide the total revenue, namely Dollar Thrifty, Budget and Vanguard. Unlike other mature service industries, the rental car industry is highly consolidated which naturally puts potential new comers at a cost-disadvantage since they face high input costs with reduced possibility of economies of scale. Moreover, most of the profit is generated by a few firms including Enterprise, Hertz and Avis. For the fiscal year of 2004, Enterprise generated $7.4 billion in total revenue. Hertz came in second position with about $5.2 billion and Avis with $2.97 in revenue.

Level of Integration

The rental car industry faces a completely different environment than it did five years ago. According to Business Travel News, vehicles are being rented until they have accumulated 20,000 to 30,000 miles until they are relegated to the used car industry whereas the turn-around mileage was 12,000 to 15,000 miles five years ago. Because of slow industry growth and narrow profit margin, there is no imminent threat to backward integration within the industry. In fact, among the industry players only Hertz is vertically integrated through Ford.

Scope of Competition

There are many factors that shape the competitive landscape of the car rental industry. Competition comes from two main sources throughout the chain. On the vacation consumer’s end of the spectrum, competition is fierce not only because the market is saturated and well guarded by industry leader Enterprise, but competitors operate at a cost disadvantage along with smaller market shares since Enterprise has established a network of dealers over 90 percent the leisure segment. On the corporate segment, on the other hand, competition is very strong at the airports since that segment is under tight supervision by Hertz. Because the industry underwent a massive economic downfall in recent years, it has upgraded the scale of competition within most of the companies that survived. Competitively speaking, the rental car industry is a war-zone as most rental agencies including Enterprise, Hertz and Avis among the major players engage in a battle of the fittest.

Growth

Over the past five years, most firms have been working towards enhancing their fleet sizes and increasing the level of profitability. Enterprise currently the company with the largest fleet in the US has added 75,000 vehicles to its fleet since 2002 which help increase its number of facilities to 170 at the airports. Hertz, on the other hand, has added 25,000 vehicles and broadened its international presence in 150 counties as opposed to 140 in 2002. In addition, Avis has increased its fleet from 210,000 in 2002 to 220,000 despite recent economic adversities. Over the years following the economic downturn, although most companies throughout the industry were struggling, Enterprise among the industry leaders had been growing steadily. For example, annual sales reached $6.3 in 2001, $6.5 in 2002, $6.9 in 2003 and $7.4 billion in 2004 which translated into a growth rate of 7.2 percent a year for the past four years. Since 2002, the industry has started to regain its footing in the sector as overall sales grew from $17.9 billion to $18.2 billion in 2003. According to industry analysts, the better days of the rental car industry have yet to come. Over the course of the next several years, the industry is expected to experience accelerated growth valued at $20.89 billion each year following 2008 “which equates to a CAGR of 2.7 % [increase] in the 2003-2008 period.”

Distribution

Over the past few years the rental car industry has made a great deal of progress to facilitate it distribution processes. Today, there are approximately 19,000 rental locations yielding about 1.9 million rental cars in the US. Because of the increasingly abundant number of car rental locations in the US, strategic and tactical approaches are taken into account in order to insure proper distribution throughout the industry. Distribution takes place within two interrelated segments. On the corporate market, the cars are distributed to airports and hotel surroundings. On the leisure segment, on the other hand, cars are distributed to agency owned facilities that are conveniently located within most major roads and metropolitan areas.

In the past, managers of rental car companies used to rely on gut-feelings or intuitive guesses to make decisions about how many cars to have in a particular fleet or the utilization level and performance standards of keeping certain cars in one fleet. With that methodology, it was very difficult to maintain a level of balance that would satisfy consumer demand and the desired level of profitability. The distribution process is fairly simple throughout the industry. To begin with, managers must determine the number of cars that must be on inventory on a daily basis. Because a very noticeable problem arises when too many or not enough cars are available, most car rental companies including Hertz, Enterprise and Avis, use a “pool” which is a group of independent rental facilities that share a fleet of vehicles. Basically, with the pools in place, rental locations operate more efficiently since they reduce the risk of low inventory if not eliminate rental car shortages.

Market Segmentation

Most companies throughout the chain make a profit based of the type of cars that are rented. The rental cars are categorized into economy, compact, intermediate, premium and luxury. Among the five categories, the economy sector yields the most profit. For instance, the economy segment by itself is responsible for 37.7 percent of the total market revenue in 2004. In addition, the compact segment accounted for 32.3 percent of overall revenue. The rest of the other categories covers the remaining 30 percent for the US segment.

Historical Levels of Profitability

The overall profitability of the car rental industry has been shrinking in recent years. Over the past five years, the industry has been struggling just like the rest of the travel industry. In fact, between the years 2001 and 2003 the US market has experienced a moderate reduction in the level of profitability. Specifically, revenue fell from $19.4 billion in 2000 to $18.2 billion in 2001. Subsequently, the overall industry revenue eroded further to $17.9 billion in 2002; an amount that is minimally higher than $17.7 billion which is the overall revenue for the year 1999. In 2003, the industry experienced a barely noticeable increase which brought profit to $18.2 billion. As a result of the economic downturn in recent years, some of the smaller players that were highly dependent on the airline industry have done a great deal of strategy realignments as a way of preparing their companies to cope with eventual economic adversities that may surround the industry. For the year 2004, on the other hand, the economic situation of most firms have gradually improved throughout the industry since most rental agencies have returned far greater profits relative to the anterior years. For instance, Enterprise realized revenues of $7.4 billion; Hertz returned revenues of $5.2 billion and Avis with $2.9 billion in revenue for the fiscal year of 2004. According to industry analysts, the rental car industry is expected to experience steady growth of 2.6 percent in revenue over the next several years which translates into an increase in profit.

Competitive Rivalry Among Sellers

There are many factors that drive competition within the car rental industry. Over the past few years, broadening fleet sizes and increasing profitability has been the focus of most companies within the car rental industry. Enterprise, Hertz and Avis among the leaders have been growing both in sales and fleet sizes. In addition, competition intensifies as firms are constantly trying to improve their current conditions and offer more to consumers. Enterprise has nearly doubled its fleet size since 1993 to approximately 600,000 cars today. Because the industry operates on such narrow profit margins, price competition is not a factor; however, most companies are actively involved in creating values and providing a range of amenities from technological gadgets to even free rental to satisfy customers. Hertz, for example, integrates its Never-Lost GPS system within its cars. Enterprise, on the other hand, uses sophisticated yield management software to manage its fleets.

Finally, Avis uses its OnStar and Skynet system to better serve the consumer base and offers free weekend rental if a customer rents a car for five consecutive days Moreover, the consumer base of the rental car industry has relatively low to no switching cost. Conversely, rental agencies face high fixed operating costs including property rental, insurance and maintenance. Consequently, rental agencies are sensitively pricing there rental cars just to recover operating costs and adequately meet their customers demands. Furthermore, because the industry experienced slow growth in recent years due to economic stagnation that resulted in a massive decline in both corporate travel and the leisure sector, most companies including the industry leaders are aggressively trying to reposition their firms by gradually lessening the dependency level on the airline industry and regaining their footing in the leisure competitive arena.

The Potential Entry of new Competitors

Entering the car rental industry puts new comers at a serious disadvantage. Over the past few years following the economic downturn of 2001, most major rental companies have started increasing their market shares in the vacation sector of the industry as a way of insuring stability and lowering the level of dependency between the airline and the car rental industry. While this trend has engendered long term success for the existing firms, it has heightened the competitive landscape for new comers. Because of the severity of competition, existing firms such as Enterprise, Hertz and Avis carefully monitor their competitive radars to anticipate Sharpe retaliatory strikes against new entrants. Another barrier to entry is created because of the saturation level of the industry.

For example, Enterprise has taken the first mover advantage with its 6000 facilities by saturating the leisure segment thereby placing not only high restrictions on the most common distribution channels, but also high resource requirements for new firms. Today, Enterprise has a rental location within 15 miles of 90 percent of the US population. Because of the network of dealers Enterprise has established around the nation, it has become relatively stable, more recession proof and most importantly, less reliant on the airline industry compared to its competitors. Hertz, on the other hand, is utilizing the full spectrum of its 7200 stores to secure its position in the marketplace. Basically, the emergence of most of the industry leaders into the leisure market not only drives rivalry, but also it varies directly with the level of complexity of entering the car rental industry.

The Threat of Substitute

There are many substitutes available for the car rental industry. From a technological standpoint, renting a car to go the distance for a meeting is a less attractive alternative as opposed to video conferencing, virtual teams and collaboration software with which a company can immediately setup a meeting with its employees from anywhere around the world at a cheaper cost. In addition, there are other alternatives including taking a cab which is a satisfactory substitute relative to quality and switching cost, but it may not be as attractively priced as a rental car for the course of a day or more. While public transportation is the most cost efficient of the alternatives, it is more costly in terms of the process and time it takes to reach one’s destination. Finally, because flying offers convenience, speed and performance, it is a very enticing substitute; however, it is an unattractive alternative in terms of price relative to renting a car. On the business segment, car rental agencies have more protection against substitutes since many companies have implemented travel policies that establish the parameters of when renting a car or using a substitute is the best course of action.

According to Tracy Esch, an Advantage director of marketing operations, her company rents cars up to a 200-mile trip before considering an alternative. Basically, the threat of substitute is reasonably low in the car rental industry since the effects the substitute products have do not pose a significant threat of profit erosion throughout the industry.

The Bargaining Power of Suppliers

Supplier power is low in the car rental industry. Because of the availability of substitutes and the level of competition, suppliers do not have a great deal of influence in the terms and conditions of supplying the rental cars. Because the rental cars are usually purchased in bulk, rental car agents have significant influence over the terms of the sale since they possess the ability to play one supplier against another to lower the sales price. Another factor that reduces supplier power is the absence of switching cost. That is, buyers are not affected from purchasing from one supplier over another and most importantly, changing to different supplier’s products is barely noticeable and does not affect consumer’s rental choices.

The Bargaining Power of Buyers

While the leisure sector has little or no power, the business segment possesses a significant amount of influence in the car rental industry. An interesting trend that is currently underway throughout the industry is forcing car rental companies to adapt to the needs of corporate travelers. This trend significantly reduces supplier power or the rental firms’ power and increases corporate buyer power since the business segment is excruciatingly price sensitive, well informed about the industry’s price structure, purchase in larger quantities and they use the internet to force lower prices. Vacation buyers, on the other hand, have less influence over the rental terms. Because vacationers are usually less price sensitive, purchase in lesser amounts or purchase more infrequently, they have weak bargaining power.

Five Forces

Today the car rental industry is facing a completely different environment than it did five years ago. Competitively speaking, the revolution of the five forces around the car rental industry exerts some strong economic pressure that has significantly tarnished the competitive attractiveness of the industry. As a result of the economic downturn in recent years, many companies went under namely Budget and the Vanguard Group because their business infrastructure succumbed to the untenability of the competitive environment. Today, very few firms including Enterprise, Hertz and Avis return a slightly above-average revenue compared to the rest of the industry. Realistically speaking, the car rental sector is not a very attractive industry because of the level of competition, the barriers to entry and the competitive pressure from the substitute firms.

Strategic Group Mapping

As a moderately concentrated sector, there is a clear hierarchy in the car rental industry. From an economic standpoint, disparities exist from a number of dimensions including revenue, fleet size and the market size each firm holds in the market place. For instance, Enterprise dominates the industry with a fleet size of approximately 600,000 vehicles along with its market size and its level of profitability. Hertz comes in second position with its number of market shares and fleet volume. In addition, Avis ranks third on the map. Avis is among one of the companies that is having issues recovering its revenue margins from prior to the economic downturn. For instance, in 2000 Avis returned revenues of approximately $4.23 billion. Over the course of the next several years following 2000, the revenue of Avis has been significantly lower than that of 2000. As a way of reducing uncertainty most companies are gradually lessening the level of dependency on the airline industry and emerging the leisure market. This trend may not be in the best interest of Hertz since its business strategy is intricately linked to the airports.

Key Success Factors

There are many key success factors that drive profitability throughout the car rental industry. Capacity utilization is one of the factors that determines success in the industry. Because rental firms experience loss of revenue when there are either too few or too many cars sitting in their lots, it is of paramount importance to efficiently manage the fleets. This success factor represents a big strength for the industry since it lowers if not completely eliminates the possibly of running short on rental cars. Efficient distribution is another factor that keeps the industry profitable. Despite the positive relationship between fleet sizes and the level of profitability, firms are constantly growing their fleet sizes because of the competitive forces that surround the industry. In addition, convenience is one of the crucial attributes by which consumers select rental firms. That is, car rental consumers are more prone to renting cars from firms that have convenient rental and drop off locations. Another key success factor that is common among competing firms is the integration of technology in their business processes. Through technology, for instance, the car rental companies create ways to meet consumer demand by making renting a car a very agreeable ordeal by adding the convenience of online rental among other alternatives. Furthermore, firms have integrated navigation systems along with roadside assistance to offer customers the piece of mind when renting cars.

Industry Attractiveness

There are many factors that impact the attractiveness of the car rental industry. Because the industry is moderately concentrated, it puts new market entrants at a disadvantage. That is, its low concentration represents a natural barrier to entering the industry as it allows existing firm to anticipate sharp retaliations against new entrants. Because of the risks associated with entering the industry among other factors, it is not a very attractive sector of the marketplace. From a competitive standpoint, the leisure market is 90 percent saturated because of the active efforts of Enterprise to dominate this sector of the market. On the other hand, the airport terminals are heavily guarded by Hertz. Realistically speaking, entry in the industry offers low profitability relative to the costs and risks associated. For most consumers, the main determining factors of choosing one company over another are price and convenience. Because of this reason, rental firms are very circumspect about setting their rates and that generally force even the industry major players in the position of offering more to the consumers for less just to remain competitive. Hertz, for example, offers wireless internet to its customers just to add more convenience to their travel plans. Avis on the other hand, offers free weekend specials if a customer rents a car for five consecutive weekdays. Based on the impact of the five forces, the car rental sector is not a very attractive industry to potential new market entrants.

Conclusion

The rental car industry is in a state of recovery. Although it may seem like the industry is performing well financially, it is nonetheless gradually regaining its footing relative to its actual economic position within the last five years. As a way of insuring profitability, besides seeking market shares and stability, most companies throughout the chain have a common goal that deals with lowering the level of dependency on the airline industry and moving toward the leisure segment. This state of motion has engendered some fierce competition among industry competitors as they attempt to defend their market shares. From a futuristic perspective, the better days of the car rental industry have yet to come. As the level of profitability increases, I believe that most of the industry leaders including Enterprise, Hertz and Avis will be bounded by the economic and competitive barriers of mobility of their strategic groups and new comers will have a better chance of infiltrating and realizing success in the car rental industry.

Sources

“Passenger Car Rental.” Encyclopedia of Global Industries. Dec. 2004. Gale group. 02 Feb 2005. http://galenet.galegroup.com.ucfproxy.fcla.edu/servlet/BCRC.

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