Case Study - Enterprise Rent-A-Car
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 promptly sends a shuttle car. Also, ERAC has opened a new office when nearby offices afford 100-vehicle inventory. When people who work at the offices need alternative cars because of repair or accident, they can easily access ERAC. Furthermore, Enterprise has relationship with car repair shop managers. This relationship leads the managers to recommend their customers to use ERAC’s service. Another feature which makes competitiveness for ERAC is its culture. ERAC...
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