Enterprise rent a Car Strategy

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Enterprise Rent-A-Car is one of the largest car rental companies in North America. It specializes in providing customers temporary or a replacement vehicle.

Jack Taylor founded the company in 1957 where he started Enterprise Rent-A-Car as an Executive Leasing Company with only seven cars. The company began leasing cars for longer periods. Later on executive leasing launched itself as a short-term rental operation with 17 cars plus a car sales division. That’s when the company changed its name from Executive Leasing to Enterprise Leasing. Established in St. Louis, Missouri, their number of rental units began rising and by the mid 70’s the number of rentals hit 5,000. Enterprise also started offering fuel, maintenance and insurance
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Analyzing the above strategies, Enterprise appears to be adopting a growth strategy. Their strategy entails introducing new locations, adding new features to existing products.

Analyzing the Industry

Porters Competitive Forces

There are many factors that drive competition within the car rental industry. Price competition may not be the only factor; as companies are focused on implementing a value system and long term profitability. In addition, most companies are gradually lessening their focus on their airline operations and focusing on leisure rentals.

Threat of potential entrants is low since the established car rental companies have continued to increase their market share. Plus, their competition is fierce within the car rental industry. Alternatives to Business Car Rental include video conferencing, virtual teams, collaborative software, personal cars and public transport. Supplier power within the rental car industry is low. Suppliers do not have a significant influence in supplying cars as there are many.

SWOT Analysis

STRENGTHS

Industry Recognition leading to a strong brand image
Large fleet of vehicles
Large scale of operations
Robust financial performance within the company
Top performer in Customer Service

WEAKNESSES

Concentration of assets
Maintenance and cost of repairs
No one-way rentals
Very capital intensive operations
OPPORTUNITIES

Recent initiatives
Growing global car
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