Organizational Behavior Case Study

Topics: Car rental companies, Car rental, Customer Pages: 3 (1028 words) Published: November 3, 2010
Enterprise definitely have a competitive advantage over its competitors because of its orientation towards better customer service and a large network of branches across the country. Enterprise Rent-a-Car has been very successful as it focused on an entirely untapped segment of the car-rental market and created a niche for itself. Along the way, while its competitors slugged it out for the overcrowded airport traveler segment, Enterprise continued to prosper by expanding its inner-city operations. Enterprise also displays an internal consistency between its resources, capabilities, and strategies, translating into a clear-cut advantage. Their office locations are inexpensive and small, with a new one opening in proximity if one branch achieves a fleet size of 150 cars. By hiring college graduates that are more social and outgoing, and not academic achievers, they get the right kind of employees to satisfy customer needs and bring in new business for enterprise. They have the most number of inner-city locations, far more than any competitor, and more importantly, have established relationships with garage service managers and customers. Avoiding airport locations also helps Enterprise to cut down on commissions to travel agents. Enterprise has earned a formidable reputation with its customer base and gets positive word-of-mouth publicity. It would be extremely difficult for a new entrant to get an Enterprise customer to switch to their brand. Another competitive advantage Enterprise have is of pricing. Enterprise provides customer with car with rental as low as $16 a day and one can get a BMW for $49 a day. This gives Enterprise an edge over its competitors.

What is the source of Enterprise’s competitive advantage? •Customers look for three things when they go for shopping: Quality, Price and Convenience Enterprise strategy seem to have all of the above incorporated in their business strategy. Convenience: By networking with garage workers,...
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