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Research on Strategy and Implementation Strategy of eHi Car Service in Chain Management

Author: JinJingMin
Tutor: YeDeLei
School: East China Normal University
Course: Business Administration
Keywords: eHi Car Service Car Rental Chain Management Strategy and Tactics
CLC: F719
Type: Master's thesis
Year: 2010
Downloads: 335
Quote: 0
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Abstract

With economic globalization, China’s rapid economic development and increasing of income levels, China’s auto consumption market has a surge of development since 2002. In 2009, China’s winning of the global automotive production and sales officially claims the coming of the peak of car consumption. With the rapid development of China’s automobile industry and the growing maturity of domestic economy, the downstream of the automotive industry-car rental business-is taking shape and growing rapidly. It is believed that car rental industry will create tremendous business opportunities and new market space.eHi Car Service Company(Abbr. eHi Car Service) comes and expands across the country at the right moment. But it has to face great pressure from China Auto Car Rental and Top One Car Rental as the strongest competitors in the first tier, closely catching-up by Heiner·Cheeyo car rental as the second tier, and market entering treats from rental giants like Hertz/Avis(US) and Orix (Japan).In this case, a new round of allocation of car rental industry will inevitably arouse in the battlefield of market share and profits.The paper has systematic and deep studies with the application of Chain Theory, Marginal Revenue Theory, Strategic Alliances and Pricing Management Theory. Analyses are done in the field of domestic and foreign auto rental industry characteristics to forecast China’s car rental industry market trends through direct market research and analogy. With the combination of PEST model, the author analyzes the external opportunities and challenges facing eHi Car Service, as well as enormous domestic potential in car rental industry.Comparative Analysis model is used to compare eHi Car Service with its competitors. Internal key principles Theory helps to deeply understanding its problem in internal management, operation mechanism and the allocation of resources. The Boston BCG matrix explains its business products and market potential merits of the project, highlighting the importance to use intensive growth strategy. Finally, qualitative and quantitative analysis through advanced SWOT analysis, summarizes the current obstacles existing in the development of eHi as well as precisely positions its target market, chain strategy and tactics advising the feasibility of development from the aspects of current market status, affection by internal and external, chain expansion mode and other aspects of forecasting future.Therefore, the paper constructs a chain in the comprehensive use of the new model, the global economy era of e-commerce technology (C2C online booking/rental/car return and feedback platform, centralized monitoring, etc.) and the modern enterprise performance management to propose a new perspective of Profit model, balanced expansion, marketing tactics, cost control and timely financing which are innovative proposals and related measures. The essay is full built and optimized, providing a forward-looking guidance to the core competitiveness of enterprises as eHi Car Service to profit in rapid market expansion and grow healthy in national chain business.

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