Question: Please can you explain to me text below? what does it mean a move that would cap more than a decade of consolidation in
Please can you explain to me text below? what does it mean "a move that would cap more than a decade of consolidation in the U.S. rental-car industry and bring the number of major players to three from what was once nine", on this text below?
I need to talk about it in class but don't understand the it. it is from Hertz bankruptcy in March.... thank you
-Hertz won bids to buy Dollar Thrifty in Aug,2012. in a deal valued at about $2.3 billion, a move that would cap more than a decade of consolidation in the U.S. rental-car industry and bring the number of major players to three from what was once nine. But if we really review carefully the advantages and disadvantages of this strategy plan, Hertz probably should not make this decision of acquisition.
-Advantages;
1.This acquisition will help to gain monopolistic characteristics in car rental business;
2.This acquisition will increase economies of scale to provide competitive advantages.
-Disadvantages;
1.Rental Car marketing size is quite stable and there's a trend of reducing due to new emerging business models. Buying competitors will make it more difficult to drive major transformations.
2.Hertz doesn't have enough capital needed to successfully manage an expanded organization.(refer to next page about Herz's debt status)
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