Herts Goes Wireless

Baylon, C; Bordey, C; Carpio, C;

Group 2 Coronado, A; Francisco, B; Santos, Ysa
 Case Outline
• Company Background
– Weighted Competitive Strength Assessment
• Case Facts
- Mobile Commerce Applications
• Case Answers
1.Intrabusiness applications
2.Finance and market-oriented applications
3.Benefits of the car-locating system
4.Competitive edge that can be get from
Hertz’s system
 Company Background
• Hertz has stood part to be the
biggest general use car rental
company in the world, and the
leading airport car rental brand in the
United States.
• The company has been the first
mover to information technologies
since the 70’s.
 Company Background
• The company expanded and is currently
operating corporate and license locations
in airports and cities in most parts of the
world.
• Hertz’s main competitors are Avis and
Enterprise.
 Weighted Competitive Strength Assessment

Weighted Comparative Strength Assessment

  Hertz Avis Enterprise

Critical Success Factors Weight Rating Score Rating Score Rating Score

Advertising 0.05 4 0.2 4 0.2 3 0.15

Brand Recognition 0.10 4 0.4 4 0.4 4 0.4
Customer Loyalty 0.10 3 0.3 3 0.3 3 0.3
Financial Position 0.15 4 0.6 3 0.45 3 0.45
Market Share 0.15 4 0.6 3 0.45 4 0.6
Price Competitiveness 0.15 3 0.45 2 0.3 4 0.6
Service Quality 0.10 4 0.4 4 0.4 4 0.4

User Friendly Website 0.10 4 0.4 4 0.4 4 0.4

Totals 1   3.35   2.9   3.3

 Case Facts
• Hertz capitalizes on being the first
mover to IT solutions in a highly
competitive, slow growth industry.
• The company pioneered a number
of mobile commerce applications to
withstand the competition.
Mobile Commerce Applications

• Quick rentals
• Instant returns
• In-car cellular phones
• NeverLost Onboard
• WiFi connection
• Booking on the go
• Additional customer services
NeverLost Onboard
 Case Answers
1. Which of these applications are
intrabusiness in nature?
- Quick rentals  reduction in paperwork
- Instant returns  reduction in time and
costs
 Case Answers
2. Identify any finance- and marketing-oriented
applications.
-Finance-oriented  cost-saving mechanism
- Instant returns
-Marketing-oriented  customer benefits and
differentiation
- Quick rentals, car locations, in-car
cellular phones, NeverLost OnBoard,
Wi-Fi connection, and other customer
services
 Case Answers
3. What are the benefits to Hertz of knowing
exactly where each care is? As a renter,
how do you feel about this capability?
- Better control over its assets  minimize
car stealing
- Improved customer support  immediate
response to customers
- This capability gives security to renters.
 Case Answers
v
4. What competitive edge can Hertz get
from the system?
Before Wireless
• Work orders are manually
assigned by multiple
supervisors and dispatchers.
• Field service employees
commute to dispatch center to
pick up paper work orders.
• Manual record keeping of
time, work completed and
billing information.
After Wireless
• Work orders are automatically
assigned and routed within
minutes for maximum
efficiency.
• Home-based field service
employees receives first work
order of the day via mobile
terminal and proceed directly
to first assignment.
• Automated productivity
tracking, record keeping and
billing updates.
 Case Answers
v
4. What competitive advantage can Hertz
get from the system?
Before Wireless After Wireless
• Field service employees call • Electronic transmittal of
in for new assignments and additional work orders with no
often wait because of radio waiting time.
traffic or unavailable • Employees close completed
dispatcher. work orders from the mobile
• Complete work orders terminals as they are
dropped off at dispatch center completed.
at the end of the day for
manual entry into the billing or
tracking system. Uncompleted
orders are manually
distributed to available
employees. Overtime charges
often result.
 Case Answers
v
4. What competitive advantage can Hertz
get from the system?
- Real-time data access
- Enhanced productivity, collaboration and
customer responsiveness