abhishreshthaa
Abhijeet S
SWOT ANALYSIS ON Avis Budget Group: 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.
Strengths
* Solid product portfolio (aeronautics, electronic & space systems, integrated solutions, others)
* Strong relationship with the US government
* High asset turnover
* Strong financial performance
Weaknesses
* Close to 85% of revenues come from one source: US government
* Softness in aeronautics division
* Revenue per employee significantly lower compared to Boeing, Rolls Royce
* Low price approach achieved at the expense of employee salaries and high turnover
Opportunities
* Order backlog simply needs to be fulfilled
* Recent acquisitions (i.e.,. Aculight Corporation)
* Rising defense spending in the US and worldwide
Threats
* Rising commodity prices
* Government contracts & future regulation
* Potential decreases in US government spending
* Employee retention & availability
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.
Strengths
* Solid product portfolio (aeronautics, electronic & space systems, integrated solutions, others)
* Strong relationship with the US government
* High asset turnover
* Strong financial performance
Weaknesses
* Close to 85% of revenues come from one source: US government
* Softness in aeronautics division
* Revenue per employee significantly lower compared to Boeing, Rolls Royce
* Low price approach achieved at the expense of employee salaries and high turnover
Opportunities
* Order backlog simply needs to be fulfilled
* Recent acquisitions (i.e.,. Aculight Corporation)
* Rising defense spending in the US and worldwide
Threats
* Rising commodity prices
* Government contracts & future regulation
* Potential decreases in US government spending
* Employee retention & availability
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