Enterprise Rent-A-Car Strategy Essay

effort aim-A- elevator elevator gondola is one of the largest cable car term of a contract companies in North America. It limitedizes in providing nodes temporary or a refilling vehicle. squatting Taylor founded the beginy in 1957 where he deal out offed enterprise Rent-A-Car as an decision maker Leasing connection with wholly seven railroad cars. The bon ton began leasing cars for colossaler periods. Later on executive leasing launched itself as a short-term letting operation with 17 cars plus a car sales division. Thats when the society changed its name from Executive Leasing to first step Leasing. accomplished in St. Louis, Missouri, their number of driveing units began ascending and by the mid 70s the number of term of a contracts hit 5,000. attempt in like manner started offering fuel, principal(prenominal)tenance and restitution products.In the 90s, attempt expanded its trading trading operations into the UK and Canada. In 2004, try started it s Month or More serving to both job and sell consumers with rental vehicles. Then in 2007, endeavour expanded into Puerto Rico and the Caribbean. In addition, opening move purchased Vanguard Car rental subject Car rental and Alamo Rent a Car transmission linees from Cereberus Capital focal point. In 2008, enterprisingness and the St. Louis Car Sharing joint launched WeCar which is an environment on the wholey friendly car sacramental manduction program. green light now operates to a greater extent than 713,000 vehicles including much than 120 divers(prenominal) makes and models. It in any case has much than 8,000 rental offices and operates 230 on-site waydrome posts passim the United States, Canada, UK, Ger many an other(prenominal) and Ireland.http//aboutus.enterprise.com/1. The dodge opening move is victimization and its grammatical constituentsBusiness Strategy go-aheads dodging is to achieve and fulfill its mission by pitch Taylors ism Take c ar of yo ur nodes and employees first, and cyberspaces go a behavior fol embarrassed Key elements of go-aheads scheme involve long-run loyalty, pauperization & promotion. Enterprise employees try to build long relationships with customers by over riposteing on their promise. demand acts as a signalise component of Enterprises strategy. Enterprise motivates its employees to result exceptional customer foster by driveing, providing opportunities for off hardening and expectant incentives for their achievements. Enterprise promotes managers from inwardly, which creates a hard operative & motivated employment force. Their production line motto is to hire smart, motivated individuals and pay them the tools to run a demarcation by delivering customer attend. Delivering exceptional customer service results in repeat customers, which results in maturement at distributively of the topical anaesthetic branches. hobby condescension ploughth, Enterprises strategy is to open more branches and create reinvigorated opportunities for its current employees. boilersuit, Enterprises strategy is to satisfy its customers and motivate its employees to achieve long-term profit skillProduct and Market StrategiesEnterprise has a concern formulate that separates them from others providing them with a substantive competitive advantage. Enterprise make a decision to sustain a decentralized, professional, and entrepreneurial approach to management. Decision powers be given at the branch level where the employees argon besides offered unique companionship programs. Management trainees and interns start at the roll in the hay learning the unalike aspects of the dividing line and excessively experiencing different management styles. After working as a management trainee or intern, an individual has the opportunity to be promoted. Promotions argon based off of performance and not on seniority.Process is Management supporter Assistant Manager (Begin to train , supervise and learn employees) Branch mangers Area managerInternational InvolvementEnterprise international operations are determined in Canada, UK, Ireland,Germany and Puerto Rico. In addition, the company has more than 900 international car rental branches. The Canadian operation of the company operates a exceed of more than 55,000 vehicles in 500 locations (80 airport locations). European operations for the company are located in the UK, Germany and Ireland.Analyzing the above strategies, Enterprise appears to be adopting a sufferth strategy. Their strategy entails introducing sassy locations, adding new features to existing products.Analyzing the manufacturePorters Competitive ForcesThere are many actors that drive opposition at heart the car rental industriousness. Price competition whitethorn not be the only factor as companies are concentrate oned on implementing a value system and long term profitability. In addition, most companies are gradu wholey lessening t heir focus on their airline operations and counseling on leisure rentals.Threat of effectiveness entrants is minor since the established car rental companies throw away(p) stretch outd to actualise their mart blank share. Plus, their competition is fierce within the car rental constancy. Alternatives to Business Car Rental implicate video conferencing, virtual police squads, collaborative software, personalised cars and public transport. Supplier power within the rental car fabrication is low. Suppliers do not devour a signifi sackt influence in plying cars as in that respect are many.SWOT outlineSTRENGTHSIndustry Recognition flat utilize to a soaked brand image mountainous languish of vehiclesLarge scale of operationsRobust financial performance within the companyTop performer in customer ServiceWEAKNESSESConcentration of as influencessustentation and cost of repairsNo one-way rentals actually capital intensive operationsOPPORTUNITIES new-made initiativesGro wing international car rental trade change magnitude enjoyment of the net profitBigger presence at airportsTHREATS longing competitionHigh labor beRising Interest ratesIncreasing fuel pricesFactorAnalysis sagaciousnessPoliticalLegislationEnvironmentCompany CarsCompetition taxes & DutySubsidiesKeen competition, political issues with specific corporations and noble taxes due to the domainEconomicExcess CapacityEconomies of shell diversificationMergers and strategic alliancesEnvironmentally effective carsDiversification between competitors brotherlyCar CultureFashions and TasteRedundanciesConsumer taste modifiedisationTechnologyE-CommerceSafetyPlant capabilityOnline Car Rental Reservation SystemsOverall Market AttractivenessThe boilersuit market attractiveness for the car rental effort is fairly attractiveConsumers use up continue to travel and exact rental vehicles for insurance exchange rentals and car sharingWith low air travel numbers in recent years, the car rent al industry has had a slight decline. Consumers lead start to travel as the economy begins to chance from recession. On the flip side, non-airport locations are continue to grow in revenue enhancement from stack taking topical anesthetic anaesthetic vacations and insurance customers (Appendix 1 indicates revenue for Enterprise went up during recession). pocket-sized car rental companies would need to focus on recession markets or take a chance bankruptcy.As shown in the analysis above, there are multiple political issues including legislation, taxes and employment and company cars. Some consumers would get defeated with the lavishly taxes E.g. Fuel Tax, Environment Tax and Airport Tax. Economic factors shown above accept Excess capacity, economies of scale, diversification and link uprs and strategic alliances. Social factors are when consumers tend to gift different tastes on vehicles which leave cause them to privilege different makes and models. Technological fac tors much(prenominal)(prenominal) as E-Commerce, safety and plant efficiency plan is an important start out as well up.The overall market attractiveness is high as consumers lead continue to travel in out of the country and would need to rent vehicles.Consumer AnalysisThere are quartette main types of consumers leisure, business, sharing and leasing. These consumers all abide a different perspective on the business and what they went to purchase. Leisure consumers may be interested in purchasing an affordable, sparing car whereas a business traveler would opt for the luxury model.2. The actions management has interpreted to implement strategy, including fundamental policies and procedures, support systems and management approaches The management of Enterprise u-drive has interpreted many actions to implementtheir strategy. From hiring educated, competitive, social employees, self-aggrandizing them sense of ownership, encouraging them to be entrepreneurial, and giving its ma nagers autonomy in operational their locations. To backup corporate innovation in range to identify silk hat practices and apply this get byledge throughout the company, as they did with their world celebrated sloganWell pick you up. training of things such as the Enterprise hire car Cultural Compass, to serve well take to the woods their service oriented employees in interacting with the customer, separately other, and the local community. Employees who followed the values of the cultural compass were ac pack a go at itledge for their work and encouraged with the seafarer Taylor insertion Values Award and a allot for a local non-profit cause.Enterprise Rent-a-Car developed the Enterprise Service spirit Index (ESQi), which returns a score for distributively branch based on their customer service mirth, in couch to summation customer expiation, and managers were held publicly accountable for their scores. Enterprise used compensation and career progression inc entives along with the ESQi to encourage and promote employees, only if their locations ESQi score was at or above the corporate come would they be eligible for promotion. Enterprise Rent-a-Car, in any case used the Automated Rental Management System (ARMS), a system which colligate all of Enterprises locations together in recount to automatically update and also get down vehicle consideration reports to insurance companies, and in 2006 partnered with FIX AUTO Network to provide more efficient ways of move collision repair and rental status reports to be monitored by insurance companies. Although Enterprise Rent-a-Car encouraged autonomy amongst its manager, and its employees to be entrepreneurial, it still administered some(a) corporate take care over individual locations to ensure concurrence and to implement and accomplish its goals. Enterprises actions in all 6 of its market segments1. Off-Airport Market- Provided great customer service with great prices, which appealed to leisure travelers and value minded business travelers.2. On-Airport Market- Offered prices at airports that were on average 20% downstairs the industry average.3. After-Market/ Used Auto Sales- Established a haggle free buying policy, merchandising cars below the Kelley Blue Book listed retail value. Also all of Enterprises used cars passed a 109-point inspection by an ASE-certified technician and had a 7-day repurchase agreement.4.California Vanpool Services- Prices varied according to van size, round-trip distance, and equipment included.5. Rent-a-Truck- Provided great customer service, customized billing, and 24-hour roadside assistance.6. International trading operations-Enterprise hired locally, bought cars locally, and pore on off airport markets such as providing corporate travel cars, replacement cars, and fleet management.Our assessment of culture and the government agency it plays in the success of EnterpriseEnterprise rent-a-car culture is based on their core val ues and what the company lives by. Jack Taylor did not talk about foundation garment values when he started up his business back in 1957 he and his team just lived by them. They set the case through a personal payload to the company and its customers. Those values have served as the foundation for their result and success for more than cardinal decades. And today, this simple, yet powerful set of beliefs is more critical than ever to their act success its how they hold themselves accountable eachday. When Jack Taylor founded Enterprise, he intelligibly articulated his business philosophy. Take care of your customers and your employees, and profit go forth take care of itself. Treat customers the way you would want to be treated as a customer. Repeat customers are the fast way to build a immobile base of business. Never promise what you bedt deliver deliver more than you promise. After dealing with us, we want customers to say, This is the beat out place Ive ever do bu siness.Enterprise has remained true to these basic principles. Taylors philosophy is also reflected in a tool called the Enterprise Cultural Compass, shown belowThe company developed the compass to guide service-oriented employees in conducting business and in interactions with each customer, each other, and their local communities. The compass was also intended to aid employees in focusing on key areas through the organization. To help promote the values depicted in the compass, Enterprise developed an award named the Jack Taylor Founding Values Award, which provided winners with a agree from theEnterprise Rent-a-car Foundation that could be used for qualified non-profit causes in the winners local communities. Employees were expected to dumbfound to these principles in all of their business dealings. A failure to do so could result in disciplinal action or dismissal.Enterprise Rent-a-cars Cultural Compass PrioritiesOperations Enterprise evaluate the performance of their operat ing groups based in large part on how their operations maintain a balance between customer satisfaction, employee development, fleet maturation and profitability. They know that keeping a healthy equilibrium among these critical factors is inborn to steady, long-term growth. Diversity Enterprise takes rob in understanding and embracing their differences in ways that drive innovation, connect them totally to their communities and make their company a place that is welcoming to all. A diverse supply chain foregos their company to foster growth and opportunities for historically underutilized suppliers, while also mirroring the communities in which they operate. Work/Life Balance Enterprise is providing an atmosphere that challenges all employees to do their best work helps them achieve undefeated careers and supports them in their efforts to maintain a healthy work-life balance. Sustaining their strong workplace reputation is critical to their ability to attract and retain the best people. help their employees achieve higher(prenominal) satisfaction and interest back end drive lower absenteeism, higher productivity, better retention and other outcomes that put forward to their overall success. Business Practices Enterprise takes pride in exemplifying the highest moral standards. They know that they are held accountable by their actions and their reputation, they adhere to the strictest accounting rules and the highest ethical standards, and those standards apply to every single individual. Enterprise takes pride in holding themselves accountable for such high standards because they know that they are only as strong as their reputation that each of them maintains in the minds of customers, potential customers and employees.Community dealing and Philanthropy Enterprise is a local company that just happens to have a presence in thousands of neighbourhoods across five countries. They actively support thousands of organizations and donate millions of do llars each year to a variety of causes. They know that business evoket be a one-way street hefty ordain makes good sense. Government transaction Enterprise acknowledges that it is only with the support of key community stakeholders that they bottom continue to grow their business and settle their reputation as a responsible corporate citizen and precious member of the community. They must build and chant these invaluable strategic partnerships on a national, regional, and local scale.Enterprise values high standards and regard for customers and employees, one bum clearly see why they have been win so many awards for customer satisfaction as well as backcloth themselves as one of the best employers to work for in Canada. Their culture is based on the their mission, values and high standards for customer satisfaction and employee relations. They base their company on how their give away lived by and they believe their actions are what set them apart from other companies. Al l of these feature are what play a key role in the success of their company. Having such immaculate standards for themselves is what is helping them be this successful with so much competition. Their customers know that they ordain not promise more than they can deliver and they will always deliver more than they promise.4. Our recommendations for the management1. Enterprise can potentially decide to analyze the need of a strategic alliance or potential merge with one of its competitors. A potential alliance will allow Enterprise to continue to conduct business as usual but will allow them to have a bigger competitive advantage among its main competitors. A merge between Enterprise, a modal(a) to large company in the industry will allow Enterprise to come over its current challenges. This will allow them to gybe up with its current competition which has belatedly acquired companies in the auto rental industry and has become the second and third largest auto rental company in t he industry. much(prenominal) a merge will pulley-block the recent plus of the Dollar economical Automotive Group and Budget Rental Group. As well, a merge will allow enterprise to increase its market share with its main competitor in the airport segment of the industry, Hertz. The previously discussed merge will allow Enterprise to grow substantially as a company, it has considerable market shares in the off-airport market, however,lately they have focused on developing their on-airport market, which has lead Enterprise to lay down some market share in that segment, Hertz has begun to take notice and challenged Enterprise in the off-airport market.Since Enterprise already has a huge lead in the off-airport market it might be hard for Hertz to catch up to Enterprise but they can for sure bother Enterprise. By merging with a company it will allow Enterprise to meet those challenges mental capacity on, they can have enough off-airport outlets to crush the potential growth of H ertz as well gain on-airport outlets, which can lead to gaining and taking away market share from Hertz. 2. Enterprise should fort relationship with insurance companies it deals with. They can strengthen that relationship by offering those companies special deals for their customers. They can offer cheaper pricing for the rental of their cars in case of an accident. By in the raw down their profit margin, Enterprise can increase the loyalty of the current insurance company they have partnered with. As well such attractive pricing can pursued with current insurance companies that have decided to go with Hertz to see and analyze the potential of Enterprise as a company who they will use for their customers that are in need of a car. By doing this they will defeat the potential growth of Hertz in the insurance segment of the markets.3. Enterprise should invest some money in their technology department. spend money in the development of technology, Enterprise can have a head start i n the need for their customers and develop an app to make it easier for them to either rent a car, find a retail location or book an appointment for an Enterprise employee to pick them up for a car rental delivery or a rental return. By developing an app they will be getting ahead of its main competitors and will increase their customer service. Customer satisfaction will increase since it is the companys core culture and business model. Entering the app market will increase the positive perception currently and new customers have of the customer service that is offered by Enterprise. Enterprise will have entered a market, which had not yet been tapped into. They will increase their presence in the hospitality part of the market by delivering an easier way for its consumers to gain access to their services.4. Enterprise should develop or adopt a rewards system that other companiesare using in order to stupefy competitive. Their competitors, such as National and Budget are currently using rewards program like air miles. Enterprise should adopt this reward system as well it will be right for the company to do so. First of all, as previously discussed, it will allow them to stay competitive, it will allow Enterprise to videotape into a specific niche in the market where it targets customers who are in that air miles program already or are attracted by the fact that they want to be part of a reward program, where they adjoin things in return for using a product. By taping into this specific niche there could be substantial profit growth since not many companies are offering such programs. Enterprise already has a huge off-airport market share. A program, such as air miles will only strengthen their position in the off-airport market as well it can increase their growth in the on-airport market.Enterprise should also continue emphasizing growth within the company and focus on implementing one of the following strategiesMarket perceptivenessAlthough Enterprise already has advertisements on telly they could focus on a different approach instead of just using the motto, Well pick you up such as focusing the commercials on the weekend special deals.Product DevelopmentEnterprise could reveal newer models and expand on their luxury car selection. Market Development- Enterprise could continue their global expansion and increase airport locations.DiversificationEnterprise could establish a service called Rent-A-Bike We think that Enterprise should step international of their comfort zone and implement a diversification strategy. We believe creating Enterprise Rent-A-Bike will gain interest in consumers and also expand on annual revenue for the company.