Case Analysis on Enterprise Rent-A-Car PDF

Running head: CASE ANALYSIS: ENTERPRISE RENT-A-CAR
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Case Analysis: Enterprise Rent-A-Car
Student’s Name
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CASE ANALYSIS: ENTERPRISE RENT-A-CAR
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Case Analysis: Enterprise Rent-A-Car
Introduction
Business analysis is one of the primary practices that facilitate any organization to the top
position of the focal industry. The content of this paper, therefore, analyses the situation of the
focal business (Enterprise Rent-A-Car) as one of the market-driven companies in the world.
Enterprise Rent-A-Car began as automobile leasing firm in the year 1957 with Jack as the co-
founder. To achieve the best analysis of the organization, the paper answers five key Value
Creation Approach questions as below.
Level one
Macro environmental Factors
Macro-environmental factors influence the performance and operation of Enterprise
Rent-A-Car as indirect and direct manner (Melville, 2010). In as much as there are very many
forces that present threats and opportunities, the organization faces impact from two significant
forces within the industry. The macro environmental forces faced by Enterprise includes;
Demographics factors and technological factors.
Demographic environment
The demographic environment is composed of people who in this case are customers.
Enterprise offer category of services which cover across a wide range of demographics. The
organization offers retail rental, fleet management, replacements, and business rental services to
various groups of people. The company service is therefore consumed by a large number of
consumers ranging from, personal drivers of all ages, business owners and airports. The
customers vary from age aspect, professions as well as geographical locations (Melville, 2010).

CASE ANALYSIS: ENTERPRISE RENT-A-CAR
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The diverse demographic therefore has a positive impact on the company as it creates a broader
market.
Technological environment
Technological advancement is a very crucial factor in business. The increasing
technological advancement impacts Enterprise operations both positively and negatively.
Technological advancement results in changes in trends and social environment thus the need to
advance. Taking, for instance, the majority of drivers (customers) desire for more fuel-efficient
cars, free toxic gas emission cars, as well as vehicles that run on alternative sources such as solar
and electricity thus, may opt for other firms. Enterprise in such case must, therefore, invest more
capital to keep their customers. Even though technology posts thereat to the business, it also
increases the organization's competitive advantage.
Level two
Market Factors
There are various push and pull factors within the industry that affects Enterprise Rent-A-
Car operations. The immediate market factor that influences the firm’s activities is a stiffer
completion from firms such as Avis Budget Group, Dollar Thrifty Automotive as well as Hertz
Global Holdings (Shaheen, Cohen & Chung, 2014). Competition from these companies threats
Enterprise Rent-A-Car progress the company must, therefore, use more capital to remain at the
top. Another force influencing the demand is a collaboration between insurance companies and
Enterprise Rent-A-Car. Insurance companies keep changing their policies which affect the
company’s service charges.
Level three
Enterprise Rent-A-Car customer value creation