In the early days of DOS I used the ARC compression utility, then along came PKARC with better performance and better compression. ARC then sued PKARC for name infringement so PKARC became PKZIP (PK = Phil Katz, the dev) and the .zip extension was used instead of the .arc extension. Not long after, ARC withered and died.
I used PKZIP for quite a few years but then migrated to Winzip and now use 7-zip. I believe 7-zip will do all that you need and, as pointed out by DaveLembke, it's FREE.