University Assignment: Market Analysis of Enterprise Rent-A-Car

This report provides a comprehensive market analysis of Enterprise Rent-A-Car, a leading car rental company. It begins with an executive summary and company overview, detailing its history, operations, and international presence. The report delves into the car rental industry, examining market trends and Enterprise's competitive landscape, including key competitors like Hertz and Avis. A significant portion is dedicated to the marketing overview, dissecting Enterprise's marketing mix (product, price, place, promotion). Financial data, including revenue trends over five years, and an international operations review are presented. Key management personnel are profiled, including the founder and current CEO. A SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) is conducted to assess the company's internal and external factors. The report concludes with future predictions, critical success factors, and recommendations to improve and expand Enterprise Rent-A-Car's global business. The report is supported by references to relevant literature.

Running head: MARKET ANALYSIS OF ENTERPRISE RENT-A-CAR
Market Analysis of Enterprise Rent-A-Car
Name of the Student
Name of the University
Author Note

1MARKET ANALYSIS OF ENTERPRISE RENT-A-CAR
Executive Summary:
The major purpose of the report is to build a company profile of Enterprise Rent-A-Car and
analyse the company’s mode of operations and major competitors. The report further
analyses the company’s marketing mix strategy, financial and SWOT analysis over the last
five years. In the next section, the report discusses about the key managements of the
company and the company’s major goals in the next year. Having analysed the company,
based on the above mentioned analysis, the report concludes the recommendation to improve
and expand the global business of Enterprise Rent-A-Car.

2MARKET ANALYSIS OF ENTERPRISE RENT-A-CAR
Contents
Introduction:...............................................................................................................................3
Company Overview:..............................................................................................................3
Discussion:.................................................................................................................................3
Industry Overview:.................................................................................................................3
Marketing Overview:.................................................................................................................4
Financial Analysis:.....................................................................................................................5
International Operation:.............................................................................................................6
Review of key management personnel:.....................................................................................6
SWOT Analysis:........................................................................................................................7
Future prediction of the company:.............................................................................................8
Critical success factors:..............................................................................................................8
Conclusion:................................................................................................................................9
Reference:................................................................................................................................10

3MARKET ANALYSIS OF ENTERPRISE RENT-A-CAR
Introduction:
Company Overview:
Enterprise Rent-A-Car is an US-based car rental organization in Clayton, Missouri in
United States. Apart from car rental, the company engages in commercial fleet management,
second hand car sales and commercial truck rental operations. This company found in the
year 1957 by Jack C. Taylor. The company was initially named as Executive easing
Company; however, in 1969, it was renamed it as Enterprise. In 2009, it became the
subsidiary part of the parent company Enterprise Holding, Inc. and with more than 100,000
employees currently working in around 5400 domestic and 90 international locations in UK,
Canada, Germany, Spain and Ireland (Fraiberger & Sundararanjan, 2015). The main
objective of the organization is to provide the best transportation service across the world and
meet the need of the customer by providing excellent service, quality and values. The
company intended to serve the entire community as a committed corporate citizen.
Discussion:
Industry Overview:
The car rental industry in the United States has been rapidly geared up over the last
few years. Some factors such as online easy booking rental car services, drastic growth in
travel and tourism sector and customer’s preference towards more comfortable and easy
travelling are associated with this rapid growth. Enterprise Rent-A-Car solely focuses on new
technical innovations in order to attract the customer. They provide numerous schemes and
offers to sustain their old and loyal customers. Although the company is the biggest car rental
company in North America, its top three major competitors include Carey Worldwide, The
Hertz Corporation and FarePortal.

4MARKET ANALYSIS OF ENTERPRISE RENT-A-CAR
Marketing Overview:
The company specializes in providing vehicles to the customer on a rental basis.
Reasons may include business and weekend trips, emergency and special occasions and many
other. Their initial target market was the neighbourhood customers; however, with the
growing market condition, they expanded their market (Fraiberger & Sundararanjan, 2015).
Optimizing marketing mix is the basic responsibility of marketing. Through offering products
with the proper combination of four P’s they improve the marketing objectives (Huang &
Sarigöllü, 2014). Within their domain, the 4P’s that composed the marketing plan have been
discussed in the following section.
Product: Enterprise Rent-A-Car offers a variety of rental cars starting from Fiat Palio, VW
Polo Sedan and Gol, Hyundai Elantra, Nissan Altima to commercial trucks and vans
according to the customer needs and expectations (Grant 2016). One of their product
strategies includes the distinctive pick up service. Moreover, Enterprise’s Flex-E-Rent
services and corporate rental programme are few of the strategies of their product
development.
Price: Enterprise charges competitive prices compare to its competitors. To rent a car with
perfect condition, customer has to pay around $30 or less per day. The company offers
variable rates for the specific season of the year (Grant 2016). During lean season such as
winter and fall, they concentrate on local customer offering cheaper than the normal rates.
However, for the pick season such as summer and Christmas, their offers are comparatively
higher.
Place: Place represents the store or location where the product can be purchased which is also
refers to the distribution channel. Enterprise’s store includes virtual as well as physical stores
in different location across the United States and other part of the world. A crucial fact for
Enterprise’s growth is that their stores mainly located near airports and to the main hotels.

5MARKET ANALYSIS OF ENTERPRISE RENT-A-CAR
They also have the virtual platform where tourism-related contents, online transaction and
customer feedback have been shown.
Promotion: Promotion refers the communication through which the company can promote
themselves in the marketing world. Enterprise uses Google, various travel agencies and social
media platforms. They also make partnerships with several travel agencies and develop
special rental packages. They promote their business via online magazines and websites.
Financial Analysis:
Here, the financial data of the parent company Enterprise Holding have been
analysed.
Year Revenue (billion)
2012 $15.4
2013 $16.4
2014 $17.8
2015 $19.4
2016 $20.9
2017 $22.3
In the 2012 fiscal year, the company achieved a record revenue and profitability of
$15.4bn (David et al., 2017). The company has total globalized asset $27.3 billion; a hike of
3.8 billion compared to the previous year (Busse et al., 2017). In 2013, they generated
$16.4bn in revenue annually thereby strengthening their position in the global market in
terms of revenues and fleet management. In 2014, their revenue further increased to $17.8bn
and in 2015, they extended it to $19.4bn and they were able to increase their fleet size to 1.7
million in that year. Next year their annual revenue jumped to $20.9bn, an 8.1% increase
compared to the last year and their vehicle size increased to 1.9 million (David et al., 2017).
Finally, sixty years after their incorporation, in the current year they generated $22.3bn, 6.5%

6MARKET ANALYSIS OF ENTERPRISE RENT-A-CAR
increase compared to the last year (Busse et al., 2017). Therefore, from the above financial
analysis, it can definitely be argued that the company is making its profit throughout the last
few years as their revenue is constantly increasing year after year.
International Operation:
This company is an internationally recognized brand in 85 countries with more than
7600 locations. The company started expanding its operations in Canada, UK, Spain,
Germany, Slovakia, Greece, Croatia and Ireland. They recently started expanding in Belgium,
Czech Republic, Bosnia & Harzegovina, Macedonia and Cyprus. They are planning to further
extend their business to 19 more European countries with the same objective of providing car
rental services to the customer (Busse et al., 2017).
Review of key management personnel:
As the company is the subsidized group of Enterprise Holding, therefore, the parent
company’s key management personnel have been discussed in this section.
Brief profile history of the founder: Jack C. Taylor, the founder of the organization used to
be a salesman at a very younger age. By obtaining interest in this venture he and his assistant
incorporated an office called Executive Leasing in 1957. His main objective of is to start a
car leasing business. For this, he took 50% pay cut and put $25,000 for 25% in the business
(Papadopoulos & Heslop, 2014). In 1969, he expanded his business outside US and
forenamed the company as Enterprise after the US aircraft carrier USS Enterprise that he
served during the World War. Initially, the company had seven cars. However, in early 80’s it
had increased to 6000 and by early 90’s it had reached to 50,000 in number (Jeon et al.,
2015).
Brief profile history of the CEO: Pamela M. Nicholson, who was the company’s President
and Chief Operating Officer, had been promoted to the company CEO in 2013. She became

7MARKET ANALYSIS OF ENTERPRISE RENT-A-CAR
the first CEO outside the Taylor family. She began her carrier in 1981 as a Management
Trainee ("Enterprise names Pamela Nicholson CEO", 2017). Within 9 months of her tenure,
she became the Assistant Manager of the company. Within one year, she joined another
organization of Southern California Group and once she is promoted, she returned back to the
previous organization. Later on in 2008, she became the President and Chief Operating
Officer of this company and in 2013, she occupied the CEO position.
The company’s other key personnel includes:
Current Chief Financial Officer is Rick Short who is also the Vice President of the
company.
Current Chief Operating Officer is Christine Taylor who is also the Executive Vice President.
Current Chief Technical Officer is Michael Nolfo (Politics, 2017).
SWOT Analysis:
Strength and Weakness are the company’s internal factors and Opportunities and
Threats are the external factors (Hollensen, 2012). Therefore, SWOT analysis is often called
the internal-external analysis. The SWOT analysis has been discussed in the following
section:
Strength
 The company’s leading market
position across the world in terms of
car leasing
 Increasing financial performance
 Provides excellent customer quality
and service
Weakness
 Lower maintenance and repairing cost
 The company’s objective towards the
capital intensive operation
 The company do not provide one way
rental services

8MARKET ANALYSIS OF ENTERPRISE RENT-A-CAR
 It has the largest fleet of vehicles
across US.
Opportunities
 A continuous trend of renting cars
 Vast online usage to promote the
business
 Vast presence at the airport locations
Threats
 Rapid increase in fuel prices
 Sudden dip in the second hand car
market
 Growing number of market
competition
 Several mergers and acquisitions
Future prediction of the company:
One of the most famous car rental service providers announced their next 5-year
financial goals in their current business report. As per the report, the company’s future goals
are drafted using a process and are surveyed by all the employees, senior managements,
major suppliers and also added it in the qualitative review and reports. Their major
aim is to reduce the waste management upto 40% by 2020 (Politics, 2017). They also
intended to reduce the Green House Gas emission of upto 10% by 2020 (Jeon et al., 2015).
They recently concentrate on reducing direct as well as indirect energy-related cost compared
to the past years. They have taken strategies to invest in workplace and also boost employees
to join company events, programs and several forums.
Critical success factors:
Critical Success Factors are required to ensure the success of an organization. Some
of the factors include:

9MARKET ANALYSIS OF ENTERPRISE RENT-A-CAR
Market Position: Company’s strong market position leads to have a strong bargaining power
and can act a price leader in the market.
Fleet Management: Company with have better fleet management has better capability to
serve customer requirements.
Operating Management: Pricing strategy and cost management are important factors to
determine company’s competitiveness and operational efficiency.
Conclusion:
The company is one of the most famous companies in the vehicle rental industry.
They are currently ranked as one of America's Largest Private Companies. Moreover, it ranks
on Fortune's list of the 500 largest American public companies. Additionally, they accounts
for the largest airport market share in the US. The company has been taken several initiatives
to retain the loyal employees. The company's Supplier Delivery Programme is helps ease an
increase in the number of minority- and women-owned and socially, economically
disadvantaged small businesses that work to provide goods and services for them.

10MARKET ANALYSIS OF ENTERPRISE RENT-A-CAR
Reference:
Busse, M., Busse, M., Swinkels, J., Swinkels, J., Merkley, G., & Merkley, G. (2017).
Enterprise rent-a-car. Kellogg School of Management Cases, 1-15.
David, M. E., David, F. R., & David, F. R. (2017). The quantitative strategic planning matrix:
a new marketing tool. Journal of Strategic Marketing, 25(4), 342-352.
Enterprise names Pamela Nicholson CEO. (2017). Fortune. Retrieved 25 November 2017,
from http://fortune.com/2013/06/04/enterprise-names-pamela-nicholson-ceo/
Fraiberger, S. P., & Sundararajan, A. (2015). Peer-to-peer rental markets in the sharing
economy.
Grant, R. M. (2016). Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp.
113-132). Springer New York.
Jeon, S., Han, C. H., Shim, S., & Yoo, B. (2015). An Online Reference Pricing System Using
Business Analytics: The Case of a Rent-a-Car Company.
Papadopoulos, N., & Heslop, L. A. (2014). Product-country images: Impact and role in
international marketing. Routledge.
Politics, T. (2017). Enterprise Rent-A-Car Summary | OpenSecrets. Opensecrets.org.
Retrieved 25 November 2017, from https://www.opensecrets.org/pacs/lookup2.php?
strID=C00219642