...“Enterprise Rent-A-Car” A Case Study Solution Submitted By: Group ‘B’ (Bimee Maskey, Hrizu Adhikari, Krishna Dahal, Mahesh Bhandari, Sacheet Pandit, Sampada Paudel) Submitted To: Prof. Dr. KD Koirala SOMTU Date: 31st Dec, 2014 Kirtipur Enterprise Rent-A-Car Case Summary: Enterprise Rent-A-Car is founded by Jack Taulor in 1957. It is a Private car rental business with a fleet of more than 850000 vehicles which is based in St Louis, Missouri with services in the US, Canada, Germany, Irelance, Puerto Rico and UK. It is an international car rental company with a multi-billion pound turnover. Enterprise is an extended 'family' of more than 66,000 employees. It is the largest rental car company in North America but has the approach and feel of a small business. The business is synonymous with exceptional customer service. Enterprise Rent-A-Car (EARC) maintains a unique selling proposition in the rental automobile industry, describing its greatest idea as personal service. This proposition is built into every facet of ERAC’s operations from point-to-point car delivery to a 427,000 rental-vehicle fleet. The business has been shaped by various concepts like: treating customers like good friends and neighbors, which has enables ERAC to grow to a point where the automotive operations have annual revenues in the billions, a fleet of cars and trucks with the numerous employees. ERAC became the industry leader in terms of fleet size and market presence with the revenue...
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...Enterprise Rent-A-Car has been given the opportunity to excel and further dominate its industry. With the continually expanding market and need for this service a window has presented itself for Enterprise. Using information provided and in -depth marketing knowledge a line of action will be provided that will allow Enterprise to reach its goals. Problem Statement In order to continue to grow and prosper while staying true to their corporate culture Enterprise Rent-A-Car needs to focus on recruiting and retaining promising college graduates and optimizing its marketing strategy to gain the most possible advantage. However this must all be achieved in spite of college student’s lack of knowledge and awareness of the opportunities that Enterprise provide, that the rental car market is still rapidly evolving, making it very volatile and prone to changes and the emerging as well as established competition. Environmental Analysis To best organize the environmental analysis the method SWOT will be used. Identifying the strengths, weaknesses, opportunities and threats will give a good understanding the conditions that Enterprise is restricted by. Strengths * Established * Large Market Share * Recognized Brand * Necessity of Service * Strong Reward System * Effective Culture | Weaknesses * Ineffective Advertising * College Graduates Unaware of Opportunities | Opportunities * Growing Market | Threats * Competition | Enterprise Rent-A-Car has a number...
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...Enterprise Rent-A-Car: Measuring Service Quality SURVEYING CUSTOMERS Kelvin Kirkman wheeled his shiny blue BMW couple into his driveway, put the gearshift into park, set the parking brake and got out to check his mail box as he did every day when he returned home. As he flipped through the deluge of catalogs and credit card offers, he noticed a letter from Enterprise Rent-A-Car. He wondered why Enterprise would be writing him. THE WRECK Then he remembered. Early that month, Kelvin had been involved in a wreck. A he was driving to work one rainy morning, another car had been unable to stop on the slick pavement and had plowed into his car as he waited at a stoplight. Thankfully, neither he nor the other driver was hurt, but both cars had sustained considerable damage. In fact, he was not able to drive his car. Kelvin had used his cell phone to call the police, and while he was waiting for the offices to come, he had called his auto insurance agent. The agent had assured Kelvin that his policy included coverage to pay for a rental car while he was having his car repaired. He told Kelvin to have the car towed to a nearby auto repair shop and gave him the telephone number for the Enterprise Rent-A-Car office that served his area. The agent noted that his company recommended using Enterprise for replacement rentals and that Kelvin’s policy would cover up to $20 per day of the rental fee. Once Kelvin had checked his car in at the shop and made the necessary arrangements...
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...The importance of customer service at Enterprise Rent-A-Car Introduction Most people probably think they know what Enterprise Rent-A-Car does. It is in the car rental business and operates a fleet of more than 850,000 vehicles. However, Enterprise Rent-A-Car has quite a different idea of what its business is all about. In Enterprise’s view, the business it is involved in is customer satisfaction. This is a characteristic that it shares in common with every successful service company, large or small. A service business is one that meets customer needs by providing them with a valued service. As individuals, all of us use services – having our hair cut, going to the cinema, drawing money out of our bank account and many other activities. Businesses also use services such as transport, insurance, and financial services. Enterprise Rent-A-Car is the number one rental car company in North America and arguably, the world. CURRICULUM TOPICS • Marketing and the business environment • Customer satisfaction • Evaluating customer service • Market research and development GLOSSARY Service: any way of providing benefits to a customer that doesn’t involve the exchange of a tangible good. Forbes: an American business and financial magazine. It produces lists of the biggest and most important companies in Britain, America and elsewhere. Private companies: companies that are owned by shareholders. These shares are not available for purchase by the general public. Revenue: the total value...
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...Enterprise Rent-A-Car Selling the Dream FEBRUARY 2008 Problem Statement After competing successfully in the market for more than 35 years, Enterprise wishes to achieve similar rates of growth as it always has. The sheer growth rates have turned it into a mammoth of car rental services. Its “small-business” corporate culture has been a determinant to the company’s growth; a culture that is now being challenged by its very size of operations. How will the company continue to apply its successful business strategy in a dynamic and increasingly competitive market? In order to resolve this issue two key problems must be addressed: 1 – How can Enterprise remain competitive while many competitors are beginning to cash-in on the “home-city” market opportunity. 2 – The company’s success is also largely dependent on the skillful employees it has always attracted. However, new graduates are finding the idea of working in the car rental industry less and less appealing. Situation Analysis After 5, 10, or maybe even 20 years of outperforming the market, one would expect Enterprise to ease from its growth stage into maturity. After 35 years, the company continues to grow, and it has great expectations for its future. Armed with a great track record, and powerful ambitions, the company faces a battle against competitors who are rapidly penetrating the “home-city” market. Also, the company faces its own internal battles, as attracting new quality employees is becoming more and more of...
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...because parking is easier. Multinational businesses need to make many decisions about the location of their operations. At an international level, they might need to choose which countries or territories to operate within to maximise opportunities. Within each country, they would need to locate the head office. At a more local level, they may need to choose whether to locate within or around major cities. Enterprise Rent-A-Car is an internationally recognised brand, operating within the United States, Canada, the UK, Ireland and Germany. It is the UK’s largest car rental company. As the company has developed, it has sought to retain the personal feel of a smaller business. The company encourages its branch managers to take responsibility for local operations. This approach helps to create a dynamic service driven by the individual branches. This means that each branch is free to focus on the needs of its local customers, while delivering Enterprise’s values and high standards of customer service. Car rental is an extremely competitive market. There are many car rental...
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...Case Study – Olympic Rent-A-Car By RS Background Olympic Rent-A-Car was founded in 1976 by former Olympic pole vaulting champion John Uelses. Through his leadership the company grew steadily over the years to attain a 7% overall market share in 2012 by promoting lower prices than Hertz and stressing quality service using the slogan “go with the winners” in their advertising. Olympic offers their Medalist Rewards Program in response to competitors programs that are designed to reward loyalty to its customers. Olympic has always held the position of a follower to their competitors on their loyalty program with only an 11% participation rate which is about one fourth of Hertz. This component of membership accounts for 21% of their total revenues or 8% of all rentals for the year. Olympics’ loyalty member customers are heavier into leisure travel, are affluent and belong to several other loyalty programs. Olympic is now facing extreme competition with their loyalty program from the industry leader Enterprise. Now Olympic must decide on how to respond to Enterprise’s new program without impacting their overall business. Target Market The best solution for Olympic to compete in the market will be to target the cost conscious vacation bound 35-55 year old consumers who are searching for a good value and not that interested in rewards points. According to Travel Weekly magazine, this demographic of vacation travelers take three-plus trips in the past year, are married...
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...Question 1 Verificamos que com este inquérito a Enterpise Rent a Car pretende dar continuidade à visão do seu fundador, Jack Taylor, que acreditava que se a empresa tivesse especial atenção em manter uma boa relação com os seus clientes, mantendo-os satisfeitos, os lucros surgiriam naturalmente. O questionário começa com uma questão de escala de satisfação que pretende saber o nível de contentamento geral, dos consumidores, com o serviço, e logo a seguir segue-se uma pergunta de resposta aberta de modo a tentar obter possíveis sugestões de melhoria, sempre na óptica de, no futuro, melhorar a relação Enterprise-Consumidor. A partir deste ponto conseguimos ver que as perguntas seguintes estão seccionadas de acordo com cada passo que o processo exige. Com isto a empresa, consegue identificar, de melhor forma, qual a causa de insatisfação do cliente, e em que departamento existem pontos a melhorar. Na pergunta 4 temos a ser testado o serviço de atendimento telefónico, e na pergunta 8 temos o empregado que tratou de papelada antes e depois do aluguer. Na pergunta 10 a Enterprise pretende obter informação do mercado e perceber quais os segmentos nele presentes em que está a actuar. As perguntas 12 e 13 dão-lhes uma ideia da dimensão do seu mercado em número de utilizações por cliente, mas é a pergunta 11 que define realmente se o cliente ficou satisfeito ou não com todo o processo. Porque mesmo na pergunta 1, uma pessoa pode ter ficado satisfeita...
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...------------------------------------------------- Enterprise Rent a car: Green Taxi ------------------------------------------------- Enterprise Rent a car: Green Taxi Student: Nguyen Phuong Duc Class: FB3A Lecturer: Nguyen Thu Thuy Student: Nguyen Phuong Duc Class: FB3A Lecturer: Nguyen Thu Thuy Student name: Nguyễn Phương Đức Class: FB3-A Enterprise Rent A Car – Green Taxi Table of Contents I. Enterprise Introduction........... . .... ........ 2 II. Enterprise Analysis3 1. SWOT 2. PEST 3. 5 Forces III. Market Penetration Strategy7 IV. Human Resource Plan12 V. Marketing Plan19 VI. Financial Plan22 VII. Conclusion2 I. Executive Introduction. Green Taxi is a Vietnam based company, whose mission is to provide reliable, timely, environment protective and safe taxi services by using modern electric car for providing services. The company will establish its presence in the industry by attack in a new way of service providing, the first time presence in Vietnam – EV taxi (Electric vehicle). Green Taxi will provide complete taxi services using the latest equipment and technology to facilitate the travel of individuals in and around Danang and Hanoi. The company's products and services show that we are an innovative, forward thinking company that recognizes the need to move with unnoisy, convenient cars. At GreenTaxi, our philosophy...
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...Customer Service at Enterprise Rent a Car Enterprise Rent-A-Car Company (Enterprise) is a car rental company based in the US. The company is principally engaged in rent-a-car, international operations, fleet services, car sales, rent-a-truck, and enterprise rideshare services. It principally rents vehicles to individual customers, business houses both on short-term and long-term basis, and fleet operators. It also has car-sharing and van pool programs. In addition to its primary services, it offers courtesy car rentals for automotive dealers and body shops. It also is actively engaged in commercial truck rental business and used market business too. It also has presence in the fleet management business, facilitating businesses in managing and expanding their fleets. The company operates with a fleet of 713,000 vehicles in over 5,000 locations across the US and from another 965 locations in Canada, Germany, Ireland, and the UK. Enterprise is headquartered in St. Louis, the US. 1. ------------------------------------------------- 2 Look at all complaints about your service as an opportunity to improve. Aim to resolve any complaint quickly and efficiently. It takes 15 minutes to clean a car. It takes 5 minutes to go over contract. Customer is in the car from a day to a month. A clean car is crucial to satisfying the customers needs. Listen to the customers needs and then try to cater to the needs as best as we can. For example., car type, color, model, size, length...
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...Individual Case Analysis Enterprise Rent – A – Car Executive Summary Enterprise Rent – A – Car is one of the largest players on the market today. This company has selected a specific target market, in which they have been outperforming all their competitors for many years. Unfortunately, other companies have noticed their success and decided to break into their market to achieve a part of the market share, hence their revenues. In addition, the company holds much weaker marketing strategy which started to set the company behind among their competitors. Their customers sometimes were not aware of their branch locations, and one out of five randomly selected people on the street were not even familiar with the company. On the other hand, the success has been shown throughout their strong culture which holds a mentality of customer, employee than profits – in that particular order. This culture states that customer is the most important in the business, and doing everything for clients is the key of this business model. Second in place would be the employee, hence they are the ones who are helping those customers. Appreciation was shown in large bonuses and higher commission percentages than other companies would offer. Last part of the chain, was the profit. It was believed by the original owner Jack Taylor, that if company will look at out for the first two (customer and employee), revenue will follow which tended to work hence company could outperform many competitors...
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...Enterprise Rent-A -Car is the largest rental car company in North America, [6] and has more than 5,399 “local market” locations (91 % of all transactions), and 419 airport locations (9% of all transactions). [ citation needed ] According to Detroit News [ citation needed] , Enterprise purchases seven percent of all new automobiles sold in the United States. Enterprise Rent-A -Car ’s primary focus is the local rental car market, specializing in car rentals to consumers who need a replacement car as the result of an accident, mechanical repair, theft, or who require a vehicle for a special occasion such as a short business or leisure trip. In the late 1990s [citation needed ] , Enterprise Rent- A- Car also began expanding its operations to include the airport market, and now serves airports in the United States, Canada, the UK, Germany and Ireland. By 2005, Enterprise Rent- A-Car 's customer service has been recognized seven times by J.D . Power and Associates as highest in customer satisfaction for rental car companies at or near airports. [7] The company was named ninth on Business Week 's top 25 companies customer service list in 2007.[8] [9] In 2006, Business Week listed Enterprise among the top ten places to begin a career. [10 ] Although the company' s pay for management trainees was among the lowest on the list (at an average $32, 500), "those who catch on" [10] quickly get a chance to run a branch office with the responsibility to generate...
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...Case Study MEMO to: | Audrey Redford, BECO 4310--002 | from: | Lauren Estrada | date: | February 13, 2015 | RE: | Enterprise Rent-A-car | | | There is an industry motto that states, “there are two types of car rental companies. Those who lose money and Enterprise”. Enterprise Rent-A-Car was started in 1957 in St. Louis, Missouri by Jack Taylor. Taylor founded the company offices in neighborhoods, and not at airports, because he believed that the Americans would welcome local option for rental cars when their vehicles were repaired. In 2010, the company had more than 6,000 rental locations in the United States and 850,000 fleet vehicles in operation. Enterprise Holdings (including Enterprise, National and Alamo brands) account for almost half of the car rental market and was more than twice as Hertz, the number two competitor. The competitive advantage of the company was the result of the combination of its practices in hiring, training, compensation, organization, customer service, IT and fleet management, among others. In the seemingly flawless company this case presents, the only thing that struck me as a problem was that they have relatively high turnover considering they put so much time, effort, and funds into training their employees. Of the entrants in their training program, 25 percent of new hires left within the first six months, and an additional 25 percent left within two years- that's just about 45 percent of their new hires gone. Based on how...
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...1. How has Enterprise Rent-A-Car (ERAC) defined its service differently than that of the typical national car rental company? Basically, ERAC focuses on customers’ convenience. In order to support their convenience, ERAC has established a lot of its branches over the regions, which makes the company offer rental service within 15 minutes. In addition, it provides customers shuttle service to bring them at their homes, offices, or repair shops without fee. So, customers can easily use its service at homes or repair shops. The company segments customers more widely than other car rental companies. While typical car rental companies usually catch the people who need a car for trip or business for customers, ERAC expands the range of customers to the people who need a car because of repair service, theft, or special purpose like treating guests or family trip. Customers can choose what they want to ride from the variety of kinds of cars from small cars to luxury cars. Also, ERAC serves its cars at lower price than that of other rental companies in spite of having lot of cars. It can be possible because ERAC reduces cost by keeping its cars on the road for six months. 2. What features of its business concept allow ERAC to compete effectively with the existing national rental car companies? As mentioned previously, having many branches makes value for ERAC. From this, the company can provide convenience to customers. Whenever customers want to use its services, Enterprise...
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...or damage to the vehicle. Sandra McKinnon and other consumers believe when they select to waive loss damage clause in the car rental agreements that they will not have to pay the extra $23.95 and assume all liability if the car got damaged. Dollar Rent a Car company is in clear violation of Section 5(a) of the Federal Trade Commission Act. Sandra McKinnon stated that “she made sure the Dollar Rent a Car clerk with the friendly, back-home demeanor knew she did not want any coverage. “She went back to her big screen, which I could not see, and she clickety-clickety-clicked,”. Then, as the clerk instructed, Ms. McKinnon signed her name on the electronic tablet”. The clerk analogy Sandra McKinnon wishes and continue creating the rental agreement, which means at this point they had a verbal agreement made. By going against Sandra McKinnon wishes and adding the loss coverage to the written contract was deceptive and misleading to the consumer, which is prohibited in commerce....
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