Introduction

An organisation creates its own strategy not only for making short-term decisions but also for
making long-term decisions. For leading & achieving the long-term goal, it creates the
pathway. Strategic managers are responsible for taking any strategic decision of an
organisation. One of their important task is differentiating the activities in order to get
competitive advantages over the competitors. Form the case study of Enterprise Rent-a-Car
we come to know how it extends its functions beyond its core business of car hire. Enterprise
Rent-a-car was established in 1957. It started its functions only with seven cars. After investing
huge money & implementing new policies , it becomes an Enterpirse. Now it has 600000 rental
cars & 135000 fleet management vehicle services. It is an international service for providing
vehicle services. It holds 7000 officies in USA, Canada, Germany, Ireland & the UK for
providing the best quality service.

Task1: Topic industry data

Enterprise Rent-a-car is a North American car rental company. It was founded before 60 years
ago in 1957 by Jack Taylor. Its headquarter is situated in Clayton, Missouri, United States in
Greater St. Louis. Beside car rental service, Enterprise-rent-a-car also provides fleet
management service, selling used cars & renting trucks commercially. According to a business
report in 2011, the annual revenue of Enterprise rent-a-car in 2011 was $14.1 billion & almost
68000 employees were working there. It was ranked 49th position on the list of Most
respected Companies in US in 2008.

Enterprise Rent-a-car maintains highest customer staisfaction in providing service to the

customers. The CRM (Customer Relationship Management) is ranked 7th position by the
J.D. Power & Associates. It also achieved 9th position among the top 25 companies customers
service list on the report of Business Week. According to a recent report of Forbes Enterprise
rent-a-car holds the 16th position among the 500 businesses in North America. It also shows
95% customers shows their positive concern about the service of Enterprise Rent-a-car.

Marketing Mix of Enterprise Rent-a-car

 Product

Marketing
Promotion Price
Mix

Place

Figure:

Source:

Product: Enterprise Rent-a-car rents cars to the customers. It rents cars to the customers if they
have three following needs:

Need a car because of an accident mechanical repair or theft.

Need cars because of going special occasions or long trip.
Need cars for business purposes.

Besides rent-a-car services it also deal with the activities of selling the used cars and providing
fleeting vehicle service.

Price: Enterprise Rent-a-car is number vehicle service provider in North America. Customers
have to pay a bit higher prices to get the services. The superior service quality & best customer
satisfaction make it justified.

Place: The services of Enterprise Rent -a-car are located in neighbourhood where the
customers live & work. In every 15 miles, it hold an office for providing the service to the
customers.

Promotion: Enterprise Rent-a-car believes that maintaining superior customer satisfaction is

the main tool of their promotional activities. Besides it also conducts Television advertisement
& online advertisement as part of its promotional activities.
Business Model of Enterprise Rent-a-car

Enterprise Rent-a-car is a world-wide brand in providing renting car service. With performs it
functions with glory during the long 60 year. To maintain the superiority in providing the
service it maintains the 4-part of business model

Holding the smart & well trained employees who are dedicated to provide the best &
exceptional service to the cuustomers.
Managing number of employees to keep pace with increasing demand & number of
customers.
To motivate the employees, it provides reward to the staff based on their performance.
The reward includes promotion, bonus or increase of salary.
Enterprise Rent-a-car attracts the top talent for grabing greater opportunities of
advancement.

Task2: Key businesses, customers, suppliers, competitors, performance,

strengths & weaknesses & challenges faced
The best example of continuous success story if Enterprise Rent-a-car. Its standards & humble
beginning rotate around the individual honesty & integrity. It tries to serve its customers by
considering them as family. It also provides reward to the staff for outstanding effort. It
maintains ethics & moral standards till today form its birth in 1957.

Key Businesses

Enterprise Rent-a-car is the largest transport solution service provider in the world. It provides
extensive service to the customers. Its services include local & airport rental, car sharing, exotic
car hire & van hire. It also provides specialized cars like temperature control, minibus etc. It
performs it business in 30 countries at 7200 locations.

Customers

Enterprise Rent-a-car is a number one choice of the customer for geeting any transporation
service. It maintains service world-wide. So, its customers exits throughout the world. Both
individuals & business organisations are its customers. People get the services travelling or
meet the emergency needs. Business organisatons get the services to meet their need like
transporting their materials, providing transportation service to the staff.
Competitors

As Enterprise Rent-a-car is an international vehicle service provides, it has to face huge

competition throughout the world. Among lots of competitors, two main competitors are Hertz
& Avis

The equity market value of enterpirse is about $17 billion where Hertz has $7.5 billion.
Enterprise is superiors not only for maintain huge capital but also mor less leveraged &
sounder.

The main difference between the Enterprise & Avis is maintaining the CRM. Enterprise is a
highly customer focused rent-a-car service provider. It provides service to holds the customer
loyality & best customer satisfaction.

Performance

The goal of the company is to exceed the customers expectations. They build loyal & long-
term relationship with their customers by treating them fairly, meeting their needs & earning
trust.

Enterprise Rent-a-car performance objective can be illustrate by using the following equation

T=r + d
Here T represents Trust

r represents Reliability

d represents delight

When Enterprise was smaller jack Taylor interacts with customers personally. He performed
all sorts of activities by himself. Later he took decision to expand operation of the business.
When the business getting larger, Jack Taylor recruits staff for managing the performance. The
performance can evaluated by a measurement technique called ESQI method. Enterprise
service quality index.

This method evaluate the overall performance of an organsiation by asking two question.

One is What about customers satisfaction level completely satisfied or completely

dissatisfied?
Another is the condition of the return of the organisation.

Enterprise Rent-a-car maintains superior customer satisfaction thorugh

The friendly & helpful attitude of the employees

Making faster communication & transaction.
Maintaining cleanliness of the car

Enterprise also earn lots of revenue by providing the service according the need of the
customers. It earned $14.1 Billion revenue in 2011 which recognised highest revenue in the
service sector in NA.

Task 3: A SWOT analysis of Enterprise Rent-a-car

SWOT analysis is strategic planning technique used to evaluate the strength, weakness,
opportunity & threat involved in a business organisation. It involves specifying the objective
of the business venture & identifying the internal & external factors which are favourable &
unfavourable to achieve the objectives.

Strength Weakness

Opportunity Threat

Figure:

Source:
 Strength

Strength refers to the charatersistics through which a business organisation obtains

competitive advantages over others.

The strengths of Enterprise Rent-a-car are discussed below:

Leading market position

Strong financial position
Number one customers choice
Huge number vehicle
Strong management

Weakness

Weakness refers to the characteristics which hinder a business organisation to perform its
activities at the optimum level.

The weaknesses of Enterprise Rent-a-car are discussed below:

Incurring huge cost for maintenance & repairing

Very capital intensive operation
Following multiple way rental
Less promotional campaign
Requiring lots of formalities for getting the service

Opportunity

Opportunity refers to the factors that help an organisation to obtain some advantages .

The opportunities of Enterprise Rent-a-car are discussed below:

Trend for renting car

Using internet for renting cars
Being appeared at Airport or publiv gathering places.
Serving the green customers.
Being available on public holidays.
Threat

Threat refers to the negative forces that hinder an organisations to perform its activities
efficiently.

The threats of Enterprise Rent-a-car are discussed below:

Increasing price of fuels.

Extensive competition
Increasing price of the cars
Individuals afford to hold a personal car
Collapse of the car market

PESTLE Analysis

Macro environment is an environment which influences the businesses as a whole rather that a
specific sector. Every business is firmly affected by macro environmental forces .These factors
are so imperative for a business if it remains unmonitored it will antagonistically affect the
whole business.

To evaluate & monitor the macro environmental factors for Enterprise Rent-a-car I will use
PESTLE analysis. Each of the letter of PESTLE analysis represents a unique facto. The factors
are described below:

Political
Factor

Enviroment Economic
al factor Factor

PESTLE
Analysis

Legal Social
Factor Factor

Technologi
cal Factor
Figure:

Source:

Political factor: Enterprise Rent-a-car is an international vehicle service provider. It has to

maintain the rules & regulation which are imposed by the government & international court of
law to avoid the misuse of market power by the market leader.

Economic Factor: Consumers purchasing capability depends on the economic factors.

Enterprise Rent-a-car performs its marketing function on basis of changing economic condition
of a particular region.

Social Factor: Enterprise Rent-a-car performs its marketing functions by considering social
factor. It is more careful about their corporate social responsibilities (CSR). It does not only
strive for maximizing profit but also undertakes lots social welfare activities. As a part of CSR,
it provides necessary fund for the physical well-being of children & women.

Technological factors: To keep with the advancement & to maintain a distinctive competence
level, Enterprise Rent-a-car uses different technology for performing it marketing roles &
responsibilities. For example a customer can easily know about the products & services of
Enterprise Rent-a-car by using their websites. Again Enterprise Rent-a-car maintains customer
relationship through internet. Again a customer can put his objective & suggestion about the
products & services of Enterprise Rent-a-car by using their websites.

Legal factors: Enterprise Rent-a-car provides different kinds of product to the customers. To
protect its products from dealing any representation, it implement action like copy right act, IP
act etc.

Environmental Factor: Enterprise Rent-a-car provides sustainable products to the customers

that do not harm environment. Besides in performing the operating Enterprise Rent-a-car
maintain ECO business policy which helps to emit least amount of greenhouse gases.

Task 4: Analysing the competitive position of the Enterprise Rent-a-car

through porters five factor model
Porters five factor model is an analytical tool which use five variables to determine the
profitability of an organisation & implement the competitive strategy of the organisation. It is
the most important framework for the organisation for analyzing the profitability & strategic
planning.

Figure:

Source:

Rivalry among the competitors: There are only a few business organisations are performing
business in the rental & leasing industry. Enterprise Rent-a-car service can obtain the maximum
market advantahe by reducing the price & providing best customer service. In the industry
rental service, service provider company is limited & almost all the service providers follow
the similar pricing pattern. The main competitors of enterprise are Hertz & Avis who perform
their operations in some specific regions. Besides they also maintain their customer point at
distant areas.

Threats of New entrants: Introducing a vehical rental service is not an easy task. It required
lots of capital for introducing rental service. So, it is a difficult for the entrants to obtain
profitability by investing huge capital & facing huge competition. In this field Enterprise gets
competitive advatahe over other to get maxuum profitability.

Threats of Substitute: In this industry there are few competitors. Most of the case consumers
use bus, train & personal cars for purpose of their travelling. Sometime this can lead a major
threat for the profitability of Enterprise.
Bargaining power of the customers: The bargaining power of the buyer depends on the
customers financial reosurces & economic condition. Enterprise should have high bargaining
power capability because high bargaining power means high profitability. At the same time it
should focus on the potential customers because losing of any potential customer means a huge
loss.

Bargaining power of the suppliers: There are lots of industries who deliver vehicles to the
enterprise. If any company raise its vehicle prices, consumers will choose another company.

Task 5: Identifying the key issues faced, resourcing & any management
issues facing the owners/ manager of the business
Enterprise is a private organisation.