Strategic Diversification of the Non-Captive Market in the Vehicle Rental Industry

Abstract

This study aims to formulate a competitive strategy to reduce dependency on the captive market and enhance business sustainability by expanding into the non-captive segment of the vehicle rental industry. The research responds to the growing need for strategic flexibility in sectors dominated by captive-client dependency. Using a qualitative case study approach, the study draws on in-depth interviews, direct observation, and document analysis. Internal conditions were assessed through the management function and VRIO frameworks, while external factors were analyzed using PESTEL and Porter’s Five Forces. The company’s strategic position was evaluated using the Competitive Profile Matrix (CPM), Internal Factor Evaluation (IFE), and External Factor Evaluation (EFE) matrices, which were synthesized into the Internal-External (IE) Matrix. The SWOT matrix was then used to develop nine strategic alternatives, which were prioritized using the Quantitative Strategic Planning Matrix (QSPM). The findings indicate that the company’s vision and mission are aligned with a growth-oriented direction, supported by solid internal capabilities and responsiveness to external dynamics. The selected strategy focuses on reducing reliance on external financing to enhance cost competitiveness and mitigate macroeconomic and regulatory risks, thus supporting sustainable expansion in the B2B non-captive segment. This study contributes a structured and replicable framework for strategic planning in service-based industries, particularly those seeking to diversify beyond captive markets. By integrating SWOT and QSPM approaches, the research provides practical insights on how internal financial structure, strategic agility, and KPI segmentation can drive long-term growth and reduce market dependency.