Enterprise ‘Rent-A-Car’ And Its Business Strategies Admission Essay Help

A concise synopsis of the case

Enterprise Rent-A-Vehicle is North America's largest car rental firm. Originally created to suit the demands of local clientele requiring car lease and rental services, the company has expanded and spread its branches to more than 6000 locations worldwide and accumulated a fleet of more than 800,000 automobiles. In addition, the corporation employs around 60,000 individuals in its numerous global branches. The expansion is largely attributable to the founder's client- and employee-centric mindset. The company offers car sales, fleet management services, and Rideshare in addition to car leasing and rental. It has offices around North America, but its headquarters is in St. Louis, Missouri.

Enterprise Rent-A-Vehicle has focused its activities on off-airport car rental services over the years, unlike the majority of its competitors who have a significant airport presence. However, Hertz and Avis have made significant inroads into the off-airport car rental industry in recent years, while Enterprise Rent-A-Car struggles to get a foothold in expanding its airport presence. Despite continuing struggles to compete with Hertz and other brands in airport rental services, it is still the most lucrative automobile rental firm. It is claimed that Enterprise Rent-a-Car possesses tremendous profit and capital capabilities. Its primary strategy over the years has been to encourage staff progress inside the organization while placing customer happiness at the top of its agenda.

The company's most recent financial statistics show that it earned a record $9 billion worldwide, compared to Hertz's $328 million. Over the previous three decades, the company has had an average annual growth rate of over 20%, opening an average of 400 locations per year, including a handful in airports. No. 16 on the Forbes list of big American corporations is Enterprise Rent-A-Car. This makes it one of the largest companies in the world, a position that confers enormous financial resources.

Business tactics

The corporation has a distinctive business strategy. First, it comprehends the power of networks and seeks to gain the greatest possible benefits from this resource. It has many locations within 15 miles of each other across 90 percent of the United States. Globally, Enterprise Rent-a-Car employs close to 60,000 individuals in its offices. There is always a chance of finding an Enterprise Rent-a-Car office in the United States, regardless of your location, the size of the town, or the accessibility of the location. Its accessibility and proximity to clients have allowed it to develop great client relationships. In addition, the corporation has made substantial investments in customer service, with an emphasis on having courteous and cordial customer service agents in all of its offices.

The company's business approach places significant emphasis on service quality. Constant emphasis is made on exceeding client expectations. Enterprise Rent-A-Car will pick you up from your front door, drive you to work, and then return you home, all at your convenience. Constant emphasis is placed on making clients recognize the company's genuine concern for them. The company offers additional services, such as truck rental, fleet services, and the sale of old vehicles, in an effort to provide customers with the services they may require. In fact, the primary objective is to provide quality service that ensures client happiness.

Customers are classed as either retail or corporate. The services are tailored to address the specific demands of these client groups. In addition, it is crucial to remember that, as a result of the company's origins as a local vehicle rental service, it has several offices outside of airports. This is unlike the majority of airport-focused automobile rental firms. This makes it easier to recall the firm if one needs to rent an automobile.

SWOT Analysis

Strengths Weaknesses

Provides a variety of products Exerts enormous financial force Established and offering superior client service Has partnerships with a variety of institutions

Costs much to repair Not offering one-way rental cars Has an old fleet of automobiles, resulting in significant maintenance expenses

Opportunities and dangers

Driving is becoming more popular. Trend in car rental Airport presence of the National Association of Minority Automobile Dealers

Local market will grow congested. The used-car market is declining. Oversupply difficulties Mergers & Acquisitions

Product/market approaches

Enterprise Rent-A-distinctive Car's management style distinguishes it from other industry participants. These elements, among others, have supplied it with the necessary competitive edge. Its determination to keep a decentralized, professional, and entrepreneurial crew has unquestionably benefited the company. Operations are where decisions are made. Additionally, the organization provides frequent training for its personnel. The company's management trainees and interns all begin from the lowest learning levels in order to gain a comprehensive understanding of the business.

Industry analysis

The non-airport market sector is a significant contributor to the vehicle rental industry in the United States. Airport-based markets account for 49.3% of the total, while the remaining markets are non-airport. The market is comprised of both retail and business customers. It is essential to highlight that the industry concentrates solely on short-term rentals. It is expected that automobile rental service providers produce yearly revenues in excess of $20,000,000,000, with non-airport service providing a significant percentage.

On the other hand, data indicate that the United States is home to a significant percentage of the vehicle rental market.

Industry efficiency

Despite the slowing car rental market caused by economic difficulties in the United States and Europe, it was anticipated in 2010 that car rental sales reached $25.7 billion.

Competitive pressures

Competitive Competition

There are numerous elements that influence industrial competition. Although pricing may not be significant, businesses must prioritize value systems and tactics that provide long-term profits. Hertz, Vanguard car rental, Cendant Corporation, and Avis are primarily responsible for the industry's competitive rivalry. There are also other tiny competitors seeking clientele.

The prospect of new competitors

Due to financial needs, the threat of possible new entrants is much diminished, and there is thus the opportunity to expand market share. Nonetheless, there are always private automobile owners who prefer to enter the taxi industry and, as a result, compete for a portion of the clientele.

Threat of competition

There are numerous competitors in the industry in which the business operates. Alternatives such as video conferencing, virtual services, collaborative software, personal automobiles, and other modes of mobility pose an ongoing challenge to the market's delicate dynamics.

Influence of purchasers

The car rental market is mostly driven by the customer. Companies are frequently compelled to make adjustments in response to shifting buyer preferences.

Influence of suppliers

Suppliers have little power over the company, however brokers may influence the reduction of leasing costs.

Competitor evaluation

Cendant Co, Hertz Co, and Vanguard Car Rental USA are some of the most formidable competitors in this industry. Avis Group Holdings Inc. is another contender in the automobile rental market.

Industry tendencies

Factor Analysis Evaluation

Political Acts of Legislation

Environmental policies

Use of Company Cars

Rivalry in the Market

Services and equipment taxes

Subventions to the service Strong and determined rivalry, political concerns pertaining to a number of leading firms, and high state taxation all provide challenges for the state.

Economic Surplus Capacity

Scale economies offer advantages.

Services diversification

Mergers and strategic partnerships with other firms Emergence of ecologically responsible automobiles

Diversification of the company's goods and those of its rivals

Social Car Cultures

Style and Taste in Automobiles

Redundancy Differentiating consumer preferences and tastes

Engineering E-Commerce services

Protection of services

Effective Online Rental System

Internet Reservation System

All-encompassing Market Appeal The attractiveness of the market There will always be demand for rental cars.

Consumer research

Enterprise Rent-a-rental Car's market is comprised of four key customer types. The organization has categorized and customized solutions to satisfy the needs of this unique and diverse market. Leisure clients, business clients, sharing clients, and leasing clients are the client categories. The service tastes and demands of consumers vary significantly depending on the client category to which they belong. In contrast to corporate consumers, leisure consumers may select for smaller, more cheap vehicles. These are the forces that shape the automobile rental sector.

Durability of the enterprise

The company's existing business approach has proven successful thus far. Therefore, it is likely that the corporation will retain the system. In reality, the internet platform has remained a firm cornerstone in terms of expressing its aims and marketing. In addition, the decision to market through repair shops, policyholders, and insurance companies has enabled the business to reach a new category of customers.

Alternative strategy

Airport Situating

The corporation will continually strive to expand its presence in airports, according to its website. The approach is anticipated to complement the present corporate strategy, hence creating opportunities for future expansion. Repeatedly, the company's inability to provide a comprehensive service to its customers was hampered by its reduced airport presence. In addition, most firms, like as Avis, have already penetrated non-airport sectors.

International Places

According to the company's website, its growth plan will continue to emphasize foreign market expansion. After achieving success in Canada, the United Kingdom, and Ireland, it is apparent that the company is prepared to explore further international markets and create the groundwork for a brighter future internationally.

The growth of the company cannot be assured if new market niches are not identified. While worldwide expansion is an option, there are still many untapped local markets, such as transporting school children, expanding its fleet business, attending events like weddings, and providing relocation services, among others. Its extensive presence in the United States makes it an attractive option for families looking to relocate.

TOWS Matrix

STRENGTHS – S

Highly interconnected network Solid financial foundation Well-informed clientele Large number of vehicles Diversity

WEAKNESSES – W

a weak market position

OPPORTUNITIES – O

New markets in Europe SO STRATEGIES

Expand market penetration Expand airport office space Increase operations

WO STRATEGIES

Increase your share of airport customers

THREATS – T

Invasion of non-airport offices by rivals ST STRATEGIES

Boost advertising initiatives WT STRATEGIES

Expand the number of airport offices Put up strong marketing

Conclusion

It is anticipated that Enterprise Rent-A-Car will continue to thrive as the preferred neighborhood car rental company. It is possible that its triumphs in the United States will be mirrored in its new markets. In addition, the necessity to provide comprehensive service packages is likely to motivate the corporation to increase its airport presence. This will likely result in a strengthened market position. Through the execution of comprehensive services, it is anticipated that enhancing the company's airport presence would help improve its position as the market leader in all fields. Finally, market penetration is particularly crucial in emerging markets.

As the global economy becomes more interdependent, its worldwide presence will continue to be of paramount importance. In reality, the company's adopted initiatives will significantly determine its continued growth strategy. So far, its strategy has worked well, and hence in addition to new strategies, the company will most likely continue to expand.

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