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What's the case for Enterprise Rent a car?
By prioritizing its markets and target audiences the strategy plan will enable the company to avoid scattering its efforts, so that a greater growth can be achieved. Alternatives: 1) Do nothing. In 1996 Enterprise revenue was $2. 61 billions, which accounted for 55% of the replacement rent-a-car market.
Why is enterprise successful in the rental car market?
Alternatively, Enterprise can choose to get back on track with their older strategy and focus only on the replacement market. This is the strategy that made the company successful in the first place. Enterprise has a solid network within the market, and has a sufficient business cost advantages over its competitors. Why not use these advantages?
Are there any problems with the Enterprise service awareness?
The problems of the Enterprise service awareness in the public are not as much a problem for the mainstream business - the replacement rentals. For the replacement market, the public does not need to know about Enterprise and its services while their cars are operative.
Which is a win-win situation for Enterprise?
In return, Enterprise can give whole sale discount to the insurance company on the services that will decrease the coverage costs for the insurance company. It is a win-win situation. Therefore, in addition to the replacement market share growth the company will also experience 10%-15% industry growth.
Last Update: Oct 2021
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