CASE6-2: 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?
(1) As the current CEO says”put customers first because if they are satisfied, they’ll come back. Then come the employees. By making sure they are happy, well informed, and part of a team atmosphere, they will provide the best service possible. If you put the customers and the employees first, the bottom line will happen.”
(2) The second difference is that the company has a clearly target market. ERAC’s market focus has been on the local rental segment rather than business and holiday. Also they divided to short-term rent. This kind of convenience service is very special.
(3) Still according to Taylor, the focus is on the customer:” after all, other companies rent, lease and sell pretty much the same car as enterprise. The difference is, their business is cars and ours is people.
2. What features of its business concept allow ERAC to compete effectively with the existing national rental car companies?
(1) Convenience. ERAC set their operating strategy as “hometown” rental market. The network of offices located within 15 minutes of 90 percent of the U.S. population.
(2) Focus on people. The manage concept that people is important than sell cars helps the company appeal to many excellent employees. Also, the satisfied customer will come back.
(3) Focus on athletes. Hire athletes help company into a competitive atmosphere to go along with the emphasis on teamwork.
(4) Lower price and variety types. The lower rental price help the company get some short-term customers. A new office is opened usually as soon as an adjacent office has reached a 10-vchicle inventory.
(5) Excellent service. The employees not only rent the cars, they can also bring pizza and doughnut to workers at nearby garages.
3. Use the service profit chain to explain the success of ERAC.
The company's philosophy is the personal service, to treat your customers in
(1) As the current CEO says”put customers first because if they are satisfied, they’ll come back. Then come the employees. By making sure they are happy, well informed, and part of a team atmosphere, they will provide the best service possible. If you put the customers and the employees first, the bottom line will happen.”
(2) The second difference is that the company has a clearly target market. ERAC’s market focus has been on the local rental segment rather than business and holiday. Also they divided to short-term rent. This kind of convenience service is very special.
(3) Still according to Taylor, the focus is on the customer:” after all, other companies rent, lease and sell pretty much the same car as enterprise. The difference is, their business is cars and ours is people.
2. What features of its business concept allow ERAC to compete effectively with the existing national rental car companies?
(1) Convenience. ERAC set their operating strategy as “hometown” rental market. The network of offices located within 15 minutes of 90 percent of the U.S. population.
(2) Focus on people. The manage concept that people is important than sell cars helps the company appeal to many excellent employees. Also, the satisfied customer will come back.
(3) Focus on athletes. Hire athletes help company into a competitive atmosphere to go along with the emphasis on teamwork.
(4) Lower price and variety types. The lower rental price help the company get some short-term customers. A new office is opened usually as soon as an adjacent office has reached a 10-vchicle inventory.
(5) Excellent service. The employees not only rent the cars, they can also bring pizza and doughnut to workers at nearby garages.
3. Use the service profit chain to explain the success of ERAC.
The company's philosophy is the personal service, to treat your customers in