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Differentiation of car rental services in the Croatian market

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  • Karolina Karlo Marijanović

    (MODEST MM)

Abstract

A number of service companies focus on service differentiation nowadays. The companies that manage to deliver superior service are winners and may serve as an example of how the growth of services has changed business. The first part of the paper presents an analysis of the Croatian car rental services market. The theoretical part of the paper provides an insight into the characteristics of services in general, followed by an overview of the characteristics and features of the companies operating in the local market. The second part of the paper deals with the work of Porter and his three generic strategies, and with his differentiation strategy in particular. Subsequently, all possibilities of differentiation strategies that are appropriate to the car rental services are analyzed. Beside global recession, the Croatian market is currently also struggling with huge competition and companies cannot generate profit without continuous differentiation of all elements of service. In the third chapter the following hypothesis is set: By a continuous differentiation of all elements of the services marketing mix small businesses can compete with large international companies. Acceptance or rejection of the hypothesis is shown by the research conducted among users of the specific service. Its results fully confirm the set hypothesis. The fact that, despite global recession, the majority of respondents believes the survival of small- and medium-sized companies which continuously differentiate their business activities to be unquestionable is indeed encouraging.

Suggested Citation

  • Karolina Karlo Marijanović, 2010. "Differentiation of car rental services in the Croatian market," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 22(1), pages 113-128.
    • Handle: RePEc:zag:market:v:22:y:2010:i:1:p:113-128
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