Essay about Enterprise Rent-a-Car Marketing Case Analysis

Words: 2706
Pages: 11

Enterprise Rent-A-Car | Case # 1 |

Enterprise Rent-A-Car has started its operations in 1962 by establishing and successfully developing a new niche in the car renting industry. The business had strictly focused on replacing local citizens’ cars due to repairs. Later on Enterprise started to serve two additional segments, leisure & discretionally rentals and business rentals. Newly launched segments were successful; however the main focus of Enterprise continued to be the initial business stream – the Replacement Rentals. This business section takes up 78% of Enterprise’s resources, which enables the company to capture approximately 55% of the US replacement rentals market share. Yet, the total replacement Rent-A-Car
…show more content…
Thus, prospects do not relate to Enterprise as the company that they will go to when they need to rent a car. Clearly, competitors have succeeded more in this activity. | Disunited stores | Empowered managers are faster and more adaptive to a wide range of situation. However, their freedom splits the company into independent businesses. This is a problem for a large company because each store sets its own pricing and chaotically enters into different markets. It leads to the resource allocation being harder and less efficient, furthermore the company slowly moves into different directions all at once. | Development of New Markets | The company’s initial success resulted from its single-minded focus on the replacement market. By entering into two new markets Enterprise is losing their initial focus, which can jeopardize their current success. There is a possibility of customers becoming confused about the company’s product line, and they can leave to the competitors. | External | | Opportunities | | Market Growth | Rent-A-Car industry is fast growing. Annual 10%-15% promises optimistic growth figures to Enterprise. | Political-Legal Environment | Insurance companies are legally required to cover the replacement costs of a car to its customers. It presented prosperous market to Enterprise. | Threats | | Competition | Large competitors from airport rent-a-car