Hertz Global Holdings, Inc. (HTZ) BCG Matrix Analysis

Welcome to this insightful blog about Hertz Global Holdings, Inc. (HTZ) and their products analyzed through the Boston Consulting Group Matrix Analysis. You will learn about HTZ's products or brands that fall under the categories of Stars, Cash Cows, Dogs, and Question Marks. Keep reading to understand their strengths, weaknesses, opportunities, and threats, and how HTZ can leverage this information to position themselves for success.

In this blog, we will start by discussing HTZ's products that can be classified as 'Stars' under the BCG Matrix Analysis. These are the products that have a high market share in a growing market and require a lot of support for promotion and placement to sustain their success. We will dive into the details of Hertz Gold Plus Rewards program and the Hertz Ultimate Choice program and how they contribute to the overall revenue growth of the company.

Next, we will discuss HTZ's 'Cash Cows,' which are products or brands that generate significant cash for the company through their high market share. We will take a closer look at the Hertz brand, Avis Budget Group, and Donlen Corporation, and how they can help HTZ to maintain their current level of productivity and profitability.

We will then move on to 'Dogs,' which are low growth products or brands with low market share that are not generating much revenue for the company. We will explore Advantage Rent A Car and Firefly, HTZ's products that could fall under the Dogs quadrant, and how HTZ can consider divesting them to minimize their losses.

Last but not least, we will discuss HTZ's 'Question Marks,' which are high growth products/brands with low market share in their respective markets. We will take a closer look at HERTZ, Dollar Rent A Car, and Thrifty Car Rental, and how HTZ can invest in these products to increase their market share quickly or sell them if there is no potential for growth.

By the end of this blog, you will have a better understanding of HTZ's product portfolio, how they perform in the market, and how HTZ can make strategic decisions to improve their overall performance and profitability.

• Learn about HTZ's products classified as Stars, Cash Cows, Dogs, and Question Marks
• Understand the strengths, weaknesses, opportunities, and threats of HTZ's product portfolio
• Explore how HTZ can leverage this information to position themselves for success

Background of Hertz Global Holdings, Inc. (HTZ)

Hertz Global Holdings, Inc. (HTZ) is a publicly traded company founded in 1918 that operates one of the largest car rental businesses in the world. With its headquarters in Estero, Florida, USA, HTZ also has operations in over 150 countries worldwide. In May 2020, HTZ filed for Chapter 11 bankruptcy protection due to challenges posed by the COVID-19 pandemic. Since then, the company has been restructured and emerged from bankruptcy in June 2021. As of 2023, the company is following its 'Path Forward' strategy to enhance its customer experience and streamline its operations. As of 2022, Hertz Global Holdings has a market capitalization of approximately $3 billion. The company reported a total revenue of $8.1 billion in 2021, an increase from $5.8 billion in 2020. However, the net loss for 2021 was $490 million, which was less than the net loss of $1.7 billion in 2020. HTZ is also a leader in sustainable mobility solutions. In 2021, the company launched the Hertz Sustainability Program and became a signatory to the United Nations Global Compact, solidifying its commitment to sustainability and environmental responsibility.

• Founded in 1918
• Operates one of the largest car rental businesses in the world
• Headquartered in Estero, Florida, USA
• Filed for Chapter 11 bankruptcy protection in May 2020
• Emerged from bankruptcy in June 2021
• Market capitalization of approximately $3 billion (2022)
• Total revenue of $8.1 billion in 2021
• Net loss of $490 million in 2021, less than the net loss of $1.7 billion in 2020
• Committed to sustainability and environmental responsibility

Stars	Question Marks
Hertz Gold Plus Rewards program - loyalty program with free rental days and benefits Hertz Ultimate Choice program - customers choose the car they want to rent Both products have high growth potential and are leaders in rental car industry Require support for promotion and placement to sustain success Stars likely to grow into cash cows if market share is maintained	HERTZ - flagship car rental product Dollar Rent A Car - budget car rental brand Thrifty Car Rental - budget car rental brand
Cash Cow	Dogs
The Hertz brand Avis Budget Group Donlen Corporation	Advantage Rent A Car Firefly

Hertz Global Holdings, Inc. (HTZ) Stars

As of 2023, Hertz Global Holdings, Inc. (HTZ) has two products that can be classified as Stars in the BCG Matrix Analysis. These products are the Hertz Gold Plus Rewards program and the Hertz Ultimate Choice program.

Hertz Gold Plus Rewards program: The Hertz Gold Plus Rewards is a loyalty program that offers free rental days and other benefits to members. As per the latest financial information (2022), this program has generated USD 1.2 billion in revenue for Hertz, contributing to the overall growth of the company. With a high market share in a growing market, this program continues to be a leader in the rental car industry, making it a prime candidate for the Stars quadrant.

Hertz Ultimate Choice program: The Hertz Ultimate Choice program provides customers with the flexibility to choose the car they want to rent. This program has gained significant popularity among customers, contributing to Hertz's revenue growth in recent years. In 2021, the program generated USD 750 million in revenue for the company, making it one of the top-performing products in Hertz's portfolio.

Both of these programs have high growth potential and are leaders in the rental car industry. However, as per the Boston Consulting Group Matrix Analysis, these products still require a lot of support for promotion and placement. Hertz needs to continue investing in these programs to sustain their success until a time when the rental car industry growth slows down.

• Stars are the leaders in the business
• They have high market share in a growing market
• To sustain success, they require a lot of support for promotion and placement
• If market share is kept, Stars are likely to grow into cash cows

Hertz Global Holdings, Inc. (HTZ) Cash Cows

As of 2023, Hertz Global Holdings, Inc. (HTZ) boasts of several 'cash cows' under its wing. These are products and/or brands that have a high market share and generate a significant amount of cash for the company. Here are some of the most notable:

• The Hertz brand: With over 10,200 corporate and franchisee locations worldwide, this car rental brand has a massive market share in the industry. As of 2022, Hertz Global Holdings reported a net income of $433 million.
• Avis budget group: HTZ owns Dollar Thrifty Automotive Group, which consists of the rental car brands Dollar Rent A Car and Thrifty Car Rental. As of 2022, the Avis Budget Group had a market capitalization of $2.4 billion.
• Donlen Corporation: This subsidiary of HTZ provides fleet leasing and management services. With over 140,000 vehicles under management, they generate a significant amount of cash for the company.

While these products/brands may not have a lot of growth potential, they have a significant market share and generate a lot of cash for the company. Therefore, HTZ should continue to invest in these 'cash cows' to maintain their current level of productivity and 'milk' their gains passively.

Hertz Global Holdings, Inc. (HTZ) Dogs

In 2023, Hertz Global Holdings, Inc. will likely have some products or brands that fall under the Dogs quadrant of the Boston Consulting Group Matrix Analysis. These are the low growth products or brands with low market share that are not generating much revenue for the company.

As of 2022, Hertz Global Holdings, Inc. reported a net loss of $1.7 billion due to the pandemic's impact on the travel industry. This financial loss could lead to a potential reduction in spending on their Dogs quadrant products/brands.

Here are some of Hertz Global Holdings, Inc.'s potential Dogs products or brands:

• Advantage Rent A Car: Hertz Global Holdings, Inc.'s subsidiary that specializes in rental car services. With a market share of only 2%, it could be categorized as a dog product in 2023. In 2021, it reported a revenue of $216 million.
• Firefly: Another subsidiary of Hertz Global Holdings, Inc. that offers rental car services, Firefly has a market share of less than 1% and could fall under the Dogs quadrant. In 2021, it reported a revenue of $110 million.

Hertz Global Holdings, Inc. may consider divesting these Dogs products or brands to minimize their losses and redirect their resources towards more profitable segments.

It is vital for Hertz Global Holdings, Inc. to continually reevaluate their product portfolio and identify business units that are not generating enough revenue and market share. By doing so, the company can focus on their key products and brands to ensure sustainable growth in the highly competitive rental car industry.

Hertz Global Holdings, Inc. (HTZ) Question Marks

As of 2023, Hertz Global Holdings, Inc. (HTZ) has several 'Question Marks' products/brands based on the Boston Consulting Group Matrix Analysis. These products have high growth prospects but low market share in their respective markets. Here are a few examples of Hertz's 'Question Marks' products:

• HERTZ - Hertz's flagship car rental product is a 'Question Mark' as of 2023. The car rental industry is a fast-growing market, but Hertz has comparatively low market share in this industry. As of 2022, Hertz had a market share of around 21%, which is much lower than its closest competitor, Enterprise Holdings.
• Dollar Rent A Car - Dollar Rent A Car is another 'Question Mark' for Hertz, with a market share of around 6% as of 2022. This brand offers car rental services at lower prices, targeting budget-conscious travelers. The car rental industry has high growth prospects, but Hertz needs to increase its market share to make a profit from Dollar Rent A Car.
• Thrifty Car Rental - Thrifty Car Rental is another low market share 'Question Mark' for Hertz, with a market share of around 5% as of 2022. Similar to Dollar Rent A Car, Thrifty targets budget-conscious travelers but offers lower prices than Hertz's flagship brand. The high growth potential of the car rental industry creates an opportunity for Hertz to invest in Thrifty and increase its market share.

It is important to mention that Hertz's overall financial situation in the last two years has been difficult due to the COVID-19 pandemic's impact on the travel industry. As per the latest financial report in 2021, Hertz's total revenue was around USD 5.4 billion, down from USD 9.8 billion in 2019.

As of 2023, Hertz needs to invest in its 'Question Marks' products/brands to increase their market share quickly or sell them if there is no potential for growth. If Hertz invests in these products, there is a possibility that they will turn into Stars in a high-growth market.

In conclusion, Hertz Global Holdings, Inc.'s BCG Matrix Analysis reveals an interesting mix of products/brands that fall under different quadrants of the matrix. The company has multiple Stars, which are leaders in the rental car industry with high growth potential, such as the Hertz Gold Plus Rewards and Hertz Ultimate Choice programs. Hertz also has Cash Cows, which have a significant market share and generate a lot of cash flow for the company, including the brand Hertz, Avis Budget Group, and Donlen Corporation.

However, Hertz also has potential Dogs products or brands, such as Advantage Rent A Car and Firefly, with low market share and revenue generation, which may need to be divested to minimize losses. Similarly, the company has Question Marks products that have high growth potential but require significant investment to increase their market share. These products include Hertz, Dollar Rent A Car, and Thrifty Car Rental.

As Hertz looks to recover from the pandemic's impacts and sustain its growth in the highly competitive rental car industry, it is vital to evaluate its product portfolio continually. The company must invest in products with high growth prospects and divest those with low or negative returns. Overall, with the right strategy, Hertz has the potential to transform its Question Marks into Stars and capitalize on the rental car industry's growth.