Case Analysis: Enterprise Rent-A-Car - Business Strategies

This case study analyzes Enterprise Rent-A-Car, examining its business from macro-environmental factors, market forces, customer value creation, and customer perception perspectives. The analysis explores the impact of demographic and technological factors, competition from Avis and Hertz, and the company's customer-centric approach, particularly its "We'll Pick You Up" strategy. The study assesses customer satisfaction and the need for technological advancements such as mobile applications to enhance customer experience. The case highlights Enterprise's strong market performance, including its significant market share and revenue, while suggesting opportunities to leverage competitive advantages and integrate technology further to maintain its leadership in the car rental industry. The conclusion emphasizes the company's success and the importance of continuous improvement through strategic exploitation of strengths and technological adaptation.

Running head: CASE ANALYSIS: ENTERPRISE RENT-A-CAR
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Case Analysis: Enterprise Rent-A-Car
Student’s Name
Institutional Affiliation

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

CASE ANALYSIS: ENTERPRISE RENT-A-CAR
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customers vary from age aspect, professions as well as geographical locations (Melville, 2010).
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.

CASE ANALYSIS: ENTERPRISE RENT-A-CAR
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Level three
Enterprise Rent-A-Car customer value creation
Customer value is the perception of the services offered by the organization. Enterprise
Rent-A-Car developed a specific method of creating customer value known as “We’ll Pick You
Up.” The organization provided a free ride to its customer’s and responded to customers’ needs
thus high customer value (Weinstein, 2016). The strategy is useful to the company. However,
the company should come up the most straightforward way the customers can reach their
services. The company with modern technology should come up with an application that enables
the customers to select the product they want. Free access just as the free ride will make
customers feel valued thus high value and profitability. Moreover, the company should set a
price for their customer that will make them feel that they are over serviced.
Level four
Customer perception
The customer perception based on the provided case can be gaged as superior
satisfactory. The company since the creation works towards meeting the customer needs. The
company developed and made every decision based on customer needs (Meyer & Schwager,
2017). However, in as much as the company customer perception is superior the organization
should change when it comes to technological advancements. The current world is built on
technology, customers need easy access to the company service, and this has reduced high
customer perception and may affect the company in the future. Customers need an application
for both Android, iPhone and Microsoft devices to maintain superior satisfaction and perception.
Level five

CASE ANALYSIS: ENTERPRISE RENT-A-CAR
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Organization performance
Enterprise Rent-A-Car performance according to industry revenue and market share is
higher compared to other firms within the same industry such as Hertz. The company
controls47% of the car renting market with a revenue of 9.5 billion dollars. The existing
evidence shows that the organization performs well in comparison to the others. However, for
Enterprise Rent-A-Car to remain at the top of the industry and increase the current market share
and revenue, the company management should maximally exploit their competitive advantage as
well as utilize the technology which other firms like Avis began utilizing (Berry et al. 2016).
Conclusion
According to the above analysis, Enterprise Rent-A-Car is doing well as a firm. However,
the company management should fully exploit its competitive advantages and implement the use
of current technology.

CASE ANALYSIS: ENTERPRISE RENT-A-CAR
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Reference
Berry, L. L., Shankar, V., Parish, J. T., Cadwallader, S., & Dotzel, T. (2016). Creating new
markets through service innovation. MIT Sloan management review, 47(2), 56.
Day, G. S. (2013). Creating a superior customer-relating capability. MIT Sloan Management
Review, 44(3), 77.
Melville, N. P. (2010). Information systems innovation for environmental sustainability. MIS
quarterly, 34(1), 1-21.
Meyer, C., & Schwager, A. (2017). Customer experience. Harvard business review, 85(2), 116-
126.
Shaheen, S. A., Cohen, A. P., & Chung, M. S. (2014). North American carsharing: 10-year
retrospective. Transportation Research Record, 2110(1), 35-44.
Weinstein, A. (2016). Superior customer value: Strategies for winning and retaining customers.
CRC Press.