Enterprise Rent-a-Car Marketing Case Analysis Essay

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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

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