The External Environment

The external environment is concerned with things that are outside of the organization. The external environment encompasses the people and processes that the organization cannot directly control. Marketers can only seek to influence the external environment. The external environment includes the micro-environment and the macro-environment.

The political force is one of the factors to affect Singapore's car rental market.Singapore government makes a high import duty on vehicles,and each vehicles should get a Certificate of Entitlement(COE).That will be a heavy investment.If the investment is too high,some of the company may quit the market, and then it may affect the economy of the country.

As we know,although Singapore is a tiny city,the public transport system in Singapore is almost perfect.Most of people in Singapore are more likely to take a public transport than to buy a car.Because to use the public transport is more convenient and cheaper than to take a private car.As the public system get better,the revenue of the car rental company may falling down,and there will be less company in the car rental industry.

Although Singapore is a tiny city,and some regulations issue by the government,there are more competitor in the car rental industry.More competitors may stimulate the car rental industry,and the market will still be brisk.

The strength of Avis is that it has a strong brand identity that is known throughout the world,and it has been placed second internationally and fifth in Singapore market,with the market share of 4.4 percent.

The weakness of Avis is there are only four operation centers in Singapore,it is not enough.And two of the operation centers is at the changi,it is too far for the citizen.Avis should build more operation centers in the city where the human traffic is huge or the place near the community.

The opportunity of Avis is that the company should provide more service for the travelers.Nowadays,Singapore becomes a international tourist city, more and more foreign tourist come to visit Singapore.Avis can make some service to suit the tourist,and then to make profit.

There are two threats for Avis.One of the threat is the citizen and the tourist use the public transport system.Another threat is the competitors in the car rental industry may take the guest.To solve this problem,Avis can make some discount for consumer in order to let them rent the car.