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 …show more content…
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.
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
Concentration of assets
Maintenance and cost of repairs
No one-way rentals
Very capital intensive operations
Growing global car
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The company likewise has already employed various strategies in order to maintain the high growth rate of the company. However these strategies is soon to reach its capacity to ensure growth. Based on the case as well, what seems to be lacking in the strategies that the company employed before is marketing, control of costs, and
The lease versus buy decision is usually tough for many managers since these two options are profitable for the company and bear advantages. Understanding the impact of the decision to buy or lease a vehicle is quite tough for the managers. However, by applying economic reasoning which takes into consideration the qualitative and quantitative influences of each of the alternatives, it is possible to make the decision making process much easier. Leasing provides the advantage of paying only the depreciation costs for the vehicle in addition to taxes and other fees while purchase requires the buyer to pay the full value of the vehicle in addition to taxes and other fees. The typical values for purchase finance repayments and lease monthly payments show that lessees pay much less than the purchasers. The economic analysis presented shows that the lease is a more advantageous option than the purchase option when taken for a longer period of time as a result of having a shorter breakeven point for the company or organization.
It has everything a consumer leaving in a busy area of a metropolitan area can ask for. Convenience, cheap, and accessibility. This is everything that a customer living with out a vehicle in an area that a car is needed periodically can ask for.Weaknesses: To start up a business like this as Chase realized you need a lot of capital. Finding the money and investors that believe in your company is going to be the hardest thing to do. To lease new cars or not have enough cars for the demand of new customers can also be a hindrance in the growth of this company. Other areas of concern that need to be addressed are the costs and insurance and liability exposure that renting a car to somebody can have. With multiple of even a few wrecks or fatalities can easily close the doors to a company like Zipcar that is just getting started. Opportunities: The Zipcar company is a company that can be very easily started once the right infrastructure is in place and can even be pitched to investors as a franchise store. That can be duplicated in other areas of the country. There is not current niche for the type of people that Chase is targeting and is untapped market place with the proper marketing plan.Threats: Rental car companies can also offer rental of cars on an hourly basis. They can pick up customers as well. This is not advertised but can be done. Most importantly if Boston or New York, or Chicago have a very efficient Public
Our client, Sage Rent-A-Car Incorporation, leased a vehicle to Jeffery Calkin. The Defendant, Mr. Calkin was involved in a collision by failing to stop at a stop sign, therefore colliding with Jane White, the Plaintiff. Ms. White filed a negligence law suit against Mr. Calkin and Sage Rent-A-Car Inc. In the complaint, the Plaintiff claims that our client is required to carry insurance under the provisions of the Mandatory Financial Responsibility Act and therefore, has the duty to assume liability for the Defendant’s negligent collision. This matter is before the court on a motion to dismiss the Plaintiff’s complaint.
Recognizing an organization’s alternatives for growth is an important process for companies. By evaluating and selecting the competitive advantages within a market a company can distinguish themselves from their competition. For an organization the “grand strategies indicate the time period over which long-range objectives are to be
Porters Five Forces model evaluated Actual competition, Threat of new entrants, Threat of Substitute Products, Bargaining Power of Suppliers, and Bargaining Power of Customers. Actual Competition in the Luxury Recreational Vehicle industry is mixed due to low switching costs, constant growth, and high differentiation among products in the industry. Threat of New entrants in
ccasions and events are memorable to each one. Nevertheless, how to make it most memorable is up to each one to decide. Toronto Limo Rentals offers you the icing on the cake, to mark your day for a lifetime. To celebrate wonderful occasions such as birthdays, anniversaries, weddings to corporate events such as transportation to a seminar, conference or even to the airport for pick up and drop services Toronto Limo Rentals offers you the best in class services at extremely competitive rates. They even undertake funeral services, for those, whose drive is to be glorified.
Due to the growing competition and diminishing market share, companies are opting for different strategies to achieve their survival objectives as well as growth. Companies are thus executing grand strategies to provide their businesses with a clear direction for its strategic actions. These strategies, therefore, aim at both short term and long term sustainability and growth, and they include innovation, market development, product development, and concentration.
Over the summer, I had the opportunity to work as a Management Trainee Intern at Enterprise Rent-A-Car at the home-city branch located in Kona. Enterprise Rent-A-Car is a management career, where each employee can advance from within. The branch office is on the second floor of the building and the rental cars are lined up on the ground floor, which made it easier for employees and customers to window shop from inside. Inside the office has tons of space for customers to rest and place their luggage(s), and the desks were hidden from sight behind a divider. Enterprise Rent-A-Car is a family business owned by the Taylor family. The Taylor family created a business that brought opportunity for all people, to build and grow a career, create friendships and leadership skills, and most importantly to have fun.
Hertz was a wholly-owned subsidiary of the Ford Motor Company until it was sold in September 2005 to a private equity firm for $15 billion. Hertz dominates the airport rental car market, operating approximately 350 sites in the United States. The company offers customers high-quality vehicles and premium service. It derives the bulk of its sales and profits from rentals in the United States. It considers Avis to be a key competitor. Hertz offers its customers several key features including the low-cost Hertz #1 Club Gold program which provides an expedited rental service to members worldwide. Also, Hertz offers a "Prestige Collection" brand, which offers customers the opportunity to rent from a pool of high-end performance cars, including Jaguar, Land Rover, Lincoln and Volvo.
Strategy formulation has been acknowledged as one of the most crucial factors of ensuring the long-term growth of the business. However, the manner in which strategy is formulated, and most importantly, the nature of the strategy chosen for the company determines its future position in the marketplace (Grant, 2005).
Industry Competitors. Competitors can become a major threat to a business’ success. What differentiates Uber from its competitors is its global presence and the variety of services. Even though Uber is seen as a transport service, the effortless service has attracted a market segment that appreciates a digital customer experience. Uber’s primary competitors are Lyft and Ola Cabs, as well as the public transportation. With companies adapting to a technological society many have alternated to mobile applications, which may cause intense competition for Uber. Competition with
By the early 1990s Expro was growing quickly and put into place a plan to manage growth through targeted geographic expansion, service portfolio expansion, potential acquisitions and business efficiency improvements.