Enterprise Rent – A – Car
Enterprise Rent – A – Car is one of the largest players on the market today. This company has selected a specific target market, in which they have been outperforming all their competitors for many years. Unfortunately, other companies have noticed their success and decided to break into their market to achieve a part of the market share, hence their revenues.
In addition, the company holds much weaker marketing strategy which started to set the company behind among their competitors. Their customers sometimes were not aware of their branch locations, and one out of five randomly selected people on the street were not even familiar with the company.
On the other hand, the success has been shown throughout their strong culture which holds a mentality of customer, employee than profits – in that particular order. This culture states that customer is the most important in the business, and doing everything for clients is the key of this business model. Second in place would be the employee, hence they are the ones who are helping those customers. Appreciation was shown in large bonuses and higher commission percentages than other companies would offer. Last part of the chain, was the profit. It was believed by the original owner Jack Taylor, that if company will look at out for the first two (customer and employee), revenue will follow which tended to work hence company could outperform many competitors in this industry, without loses.
Despite their strengths and weaknesses, the company must understand that market share is the most significant piece of this industrial puzzle. By defending their target market due to their competitive advantage at this point, they can fight off the new entrees, and regaining the market they have suffered a loss on.
Furthermore, by setting up a new and appropriate marketing strategy they will be able to maintain the dominance in the original selected market, and will also be able to slowly dip in markets where their competitors are. Not to forget, expanding into other rental car markets can not only increase the market share but also attract collage students who could potentially become their employees in future. Lastly, by maintaining their strong culture of the company with every other goal in mind, the revenues will sky rocket, they will increase the amount of young graduates working, and they will regain and increase their market share – which tends to be the root of the success in this business.
Enterprise Rent-A-Car is a successful company which holds a vivid and specific market oriented strategy fulfilled with a strong and long lasting culture. Despite the fact of their large profitability and a market share, few other competitors are making an attempt to hover the market which was originally held and serviced by Enterprise Rent-A-Car. Due to the competition, some of the market share has been passed onto competitors hands. Sooner or later, this will appear in the revenue downfall.
Currently, the main goal should be centered within the growth of the market share which will essentially trigger the revenue boost which company requires. However, this implementation must be done at the same time as keeping their focus on the corporate culture that was so successful as well as helping and providing large amount of attention to their original and future employees.
In order for the Enterprise Rent – A – Car to be a dominant player in the full rental car industry, the firm must constantly engage and capitalize on attractive investments and opportunities, however at the same time maintain and improve even further on strengths they have already obtained. Not to forget, this firm has a lot of potential and strengths to expand and it should use its excellent culture and reputation in order to grow and become bigger.