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…
| Advertising | Enterprise has chosen a powerful tool for advertising, a referral source (word of mouth). By building personal connections with mechanics (who then advised their own customers to rent a car from Enterprise), the company was able to build a strong network in the industry. It earned a strong market position for the company. It has also created loyal customers, and partners. Furthermore, it resulted in lower costs and larger profits for Enterprise | Development of New Markets | Enterprise entered in two new markets, discretionary & leisure and corporate. Both of these markets are attractive as their industry share is larger than that of the replacement market (33% and 40% compared to 27%). So far Enterprise was successful in entering these markets. Since the opportunities are greater in them, it might be reasonable for the company to diversify its operations further towards the new markets. | Enterprise Culture | Enterprise’s customer-oriented culture has attracted and maintained loyal relationships with customers. It was essential for success. Its employee relations have also created responsible management structure, in which managers are flexible in resolving local circumstances. Management is also strongly patriotic about their company, which is an enormous asset for Enterprise. | Weaknesses | | Advertising | As the company grows, the lack of
The customer is the strength of a company. She must focus all its means to target service concept.
In this way, both the individual consumer and the business customer have the same basic factors motivating their decision, but with very different reasons for doing so. By looking at the customer analysis, it is apparent how Enterprise has tailored its services to satisfy the needs of the consumers.
Providing employees with the right tools to succeed was only possible through the leadership’s team relentless efforts to build trust, mutual respect, diversity and inclusion, that are embedded in its ideal culture. Shifting the paradigm to valuing the significance and importance of employees has contributed to the enormous and big gains in providing an impeccable customer service experience to all travellers, raising the bar high enough to boost customers’
Enterprise is focused on customer satisfaction in all aspects of their operations. Their overall goal is well documented on their website and presented in many of their national marketing campaigns. These marketing campaigns include commercials and social media buys that are shown on major networks. They currently use questionnaires that ask customers to answer questions based on two criteria. The first asks the customer to rank the overall experience at Enterprise. The other is a simple question asking the customer is they would rent again from Enterprise. The response rate for most customer surveys is very low, this is due to long and complicated surveys and questionnaires. This questionnaire is a tool called the Enterprise service quality index (ESQI) and provides an easy way of collecting information quickly to measure their results. The questionnaire focuses on top box positive feedback. Customers who stay local to the company will generally be free positive marketing for Enterprise. This free marketing from the customers is in the form of referrals to friends, family and colleagues.
| * Highest Market share among competitors * Only Firm with a delivery vehicle * Strong hold on B2B market * Highest stock price among competitors * Highest dealer rating among competitors * Very high and consistent return on marketing
* Building the right relationships with the right customers involves treating customers as assets that need to be managed and maximized
The culture of the organization puts the customer first ahead of the stakeholders for main growth,and which is generally belief by all.
Many businesses jump to the conclusion of thinking that if a company can be successful in one area, that it can be just as successful in another. Before making this assumption, businesses need to expand on potential challenges that they might encounter
The critical factors in the successful transformation of British Airways were changing the culture of the organization for the employees and the consumers. British Airways embarked on an aggressive media campaign that helped change the “face” of the airline. Their new tag line was “The worlds favourite airline”. Customer service became the number one priority for all employees. Lead by Colin Marshall, “an enabling culture (was put) in place to allow customer service to come out, where rather than people waiting to be told what to do to do things better, it’s an environment where people feel they can actually come out with ideas, that they will be listened to, and feel they are much more a part of the success of the company” Jick (2011)(p.30). A “Putting People First” (PFF) program was instituted for all front line employees. This helped to unify the employees with the new vision of customer service first for the company. During these two day mandatory meetings, all front line staff interacted with all levels of managers and leaders on an even playing
It helps to provide guidance on power relations and roles expected between different levels of staff in an organisation. It is not cast in stone but rather, should be adaptable to the environment- both internally and externally in order to meet the demands of consumers in these two distinct market places. Internally, the employees are the consumers. Often, the external consumers for whom products and or services are destined are the focus but as can be seen from the case study of Starbucks, focus on the internal customer can salvage dire situations that an organisation experiences
RentMyCar’s mission is to provide high-quality, low-cost, hassle free car rentals to everyone. The peer-to-peer (P2P) business model adopted by RentMyCar provides the firm a competitive advantage over other car rental companies. However, it is important, that RentMyCar not only conveys accurately the company’s intention, but also in a way that is meaningful to every stakeholder. Thus RentMyCar will make this vision make accessible by separating the movement into three major steps: launch, scale, and expand. During the launch phase RentMyCar will build and leverage strategic partnerships to quickly generate brand and credibility. RentMyCar will acquire initial customers by propagating the brand via these partners, however the launch phase will be restricted to the tristate area New York, Massachusetts and Connecticut. During the scale phase, RentMyCar will then leverage social media and digital marketing to generate leads for new customers and manage complex customer relationships across a variety of channels; both digital and traditional. By segmenting existing customer groups based on newly discovered needs and buying patterns RentMyCar will maximize its profits and revenues. Additionally, RentMyCar will also scale its operations to other states on the east coast. RentMyCar will then achieve economies of scale by rolling its service to other states of the country while focusing on efficiency of its operations.
It would have been good if this fundamental vision was in place right at the very beginning of the company’s formation. In the end it is the customers that make the company, so it makes sense to work towards satisfying this customer relationship. To become profitable and achieve market share are secondary objective that can be measured on a annual basis and overall company well being targets can be rewarded with incentives that link into the company’s performance as opposed to individual contribution to the company’s success.
Today many companies are focusing on becoming a value-driven organization because we have seen those values types of organizations are some of the most successful companies. Value tends to drive culture and when you have an organization that has strong culture, you have a lot of employee that are bookbuild so your culture is driving complete fulfillment. When you have employed fulfillment then employees are happy then they come to work and they provide good customer service. You have high customer satisfaction.
OnSite Marketing, Inc. (OMI) aims to provide advertising, marketing, and public relations services to targeted business environments in the Automotive Aftermarket industry. OMI intends to leverage the thirty plus years that co-owner Steve Crain has in the automotive arena, especially as it related to his position as the Director of Marketing for SEMA (Specialty Equipment Market Association) where he helped SEMA, the non-profit organization that is the core of the Automotive Aftermarket, market and grow their trade show into the industry’s largest trade only show. SEMA afforded Steve Crain the networking goldmine that continues to follow and serve him today. OMI’s plan seeks to generate company sales and
Approach A detailed analysis was carried out to consider how the organisation has adopted a customer-oriented approach as their key strategy for improved business. This includes factors like increased loyalty of the customers,