Enterprise Rent a Car Case Study

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 has traditional recruiting system that hires athletes and outgoing people. They readily make comfort ambience with customers and deal with relaxing customers who have accidents. Also, the company promotes competition among employees through reward system. They are compensated from their achievement, and highly applauded for teamwork.

And, they are developed by training program which involves executives. ERAC also differentiates its business concept by fleet management operation. Customers can be served the package of whole service such as acquisition, insurance, registration, equipment, financing, and fuel management, etc. This factor gives Enterprise the competitiveness of convenience. 3. Use the service profit chain to explain the success of ERAC ? Internal quality drives employee satisfaction The employment system of ERAC leads satisfaction to its employees.

Usually, companies prefer intellectual applicants, but Enterprise recruits active and friendly applicants. And, reward system makes the workers compensated by their performances. Also, the decisions are left for high-level workers who have worked from bottom line. This fact makes workers believe that they also could be executive in the future. ? Employee satisfaction drives retention and productivity Satisfied workers have loyalty to ERAC, and work hard as possible as they can to be rewarded. And, through training system, they can improve their skills and relationship with bosses. Employee retention and productivity drive service value Trained and satisfied workers can provide the best service to its customers. Training promotes work efficiency, and then it leads high quality service. ? Service value drives customer satisfaction The high quality service of ERAC provides the best convenience to customers. The nearby locations make it possible to pick up or drop off customers at their. It also offers excellent rates, which are made possible by the operating strategy and has a wide variety of vehicles to choose from for every occasion. Customer satisfaction drives customer loyalty Customers who use ERAC’s service feel very convenient form that. Whenever they need a car because their car is repaired, stolen, or crashed, they will call ERAC. Also, establishing relationship with car repair shop leads loyalty of customers. Repair shop workers will positively talk about ERAC’s service to customers, and then they will be favorable to ERAC. ?Customer loyalty drives profitability and growth Although ERAC faces competition from various sources, it still sees sound benefit from its differentiated service.

From concentrating on the “hometown” market, profit of ERAC is expected to be raised continuously. Following is a segmentation of the Rent-A-Car Market by types of clientele: Business Rentals: These customers are looking for reliable and efficient service. They are generally loyal and regular clients as business needs often tend to be re-occurring. What is most important to them is that the cars always be available when they need it and at the requested times. Reliable and often luxury automobiles are demanded by these clients.

Home-City Rentals: These are people who need rental cars as replacements when their cars are wrecked or in the body shop being repaired. The pickup service is key, as they are often stranded far from home. Small economy cars are usually sufficient for this type of segment. Leisure/Discretionary Rentals: This segment is arguably the most price-conscious one. As customers plan vacations well ahead, they have time to look for the best deals while always keeping an eye on the reliability of the automobile. This type of travel often requires quality cars with more storage space.

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