Beacon Car Rental is one of the most established and respected firms in the car-rental industry. In the past few years, it has carried out a series of Mergers and Acquisitions However, Beacon is now confronted with some problems when integrating a car-sharing company named Village Car. The business model of Village Car is quite different from the traditional car-rental model. Consequently, the management of Beacon cannot reach a consensus on the integrating, giving rise to the following problems To what extent does rental differ from sharing? What do customers care more about, functionality or community? How to deal with the integration of village Car, to fully integrate it or to keep it separated? I How should Beacon position itself in the rise of "Sharing Economy"? Only if both sides can benefit from it does a merger make sense. From this point of view the best consequence of village Car acquisition is a win-win situation. Moreover, from an exterior perspective, the rising sharing economy' will influence the process of decision-making of Beacon's management. Hence, the following problem should be focused How should Beacon deal with the integration of Village Car for a win-win situation in the new "Sharing economy Since two typical markets(car-rental market and car-sharing market) are involved in the case, the analytical method of STp is applicable. Through STP analysis, Beacon will be analysed from the three aspects of segmentation, targeting and positioning, shown as follows S egmentauion Beacon and Village Car have totally different business models and target different consumer groups. The traditional business model of car-rental is designed mainly for business travellers who need a car temporarily. By contrast, the business model of car-sharing serves people who not only want more flexible access to a car, but also believe in community, which is a bond around a common ideal. The common ideals can be anti-consumerist, pro-environment and so on. For the young generation, not owning is liberating. They do not want to buy too many things. They just want to use them when they need. That explains why car-sharing model is in great popularity among youngsters2 Beacon Car Rental is one of the most established and respected firms in the car-rental industry. In the past few years, it has carried out a series of Mergers and Acquisitions. However,Beacon is now confronted with some problems when integrating a car-sharing company named VillageCar. The business model of VillageCar is quite different from the traditional car-rental model. Consequently, the management of Beacon cannot reach a consensus on the integrating, giving rise to the following problems: To what extent does rental differ from sharing? What do customers care more about, functionality or community? How to deal with the integration of VillageCar, to fully integrate it or to keep it separated? How should Beacon position itself in the rise of ‘Sharing Economy’? Only if both sides can benefit from it does a merger make sense. From this point of view, the best consequence of VillageCar acquisition is a win-win situation. Moreover, from an exterior perspective, the rising ‘sharing economy’ will influence the process of decision-making of Beacon’s management. Hence, the following problem should be focused on: How should Beacon deal with the integration of VillageCar for a win-win situation in the new ‘Sharing Economy’? Since two typical markets (car-rental market and car-sharing market) are involved in the case, the analytical method of STP is applicable. Through STP analysis, Beacon will be analysed from the three aspects of segmentation, targeting and positioning, shown as follows. Segmentation: Beacon and VillageCar have totally different business models and target different consumer groups. The traditional business model of car-rental is designed mainly for business travellers who need a car temporarily. By contrast, the business model of car-sharing serves people who not only want more flexible access to a car, but also believe in community, which is a bond around a common ideal. The common ideals can be anti-consumerist, pro-environment and so on. For the young generation, not owning is liberating. They do not want to buy too many things. They just want to use them when they need. That explains why car-sharing model is in great popularity among youngsters