Enterprise Case Study Essay
Nova Southeastern University Wayne Huizenga Graduate School of Business & Entrepreneurship Assignment for Course: MKT5017- Delivering Superior Customer Value Submitted to: Donovan McFarlane Submitted by: Paige Chin- paige. [email protected] com Date of Submission: July 25, 2012 Title of Assignment: Case Analysis 1- Enterprise Rent A Car CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper.
I have also cited any sources from which I used data, ideas of words, whether quoted directly or paraphrased.
I also certify that this paper was prepared by me specifically for this course. Students Signatures ************************************************************************ Instructor’s Grade on Assignment: Instructor’s Comments: Enterprise Rent-A-Car- Customer Value Funnel Case Enterprise Rent-A-Car Company is a privately owned company that started in 1957, and has become the success that it is due to their business policies of listening to their customers needs and fulfilling them.
This case analysis will show in detail how the first two tiers of Weinstein’s Customer Value Funnel (Weinstein, 2012) Macro Environment and Microenvironment relates to Enterprise and how it can help to create more value to its customers.
Macro Environment Macro Environment is the factors that dictate a company’s or a business’s decisions and also affects its performance and strategies. Society The society that different people belong to may also affect the demand for rental cars.
For example, here in Florida where we do not have the most advanced public transportation system and everything being further away, more people may find the need to rent cars to get from point A to B. Where as in a place with more advanced modes of transportation, or if living in a city such as New York people may not find the need to rent a car but may choose to take the subway or the train. To help with situations like this Enterprise has weekend specials to try and attract the customers that might want to rent a car just for recreational purposes. Demographics
Enterprise’s customer base is made up of many different types of people. This is based on age, gender, occupations, geographical locations and so on. Enterprise’s customer base comes from individuals who either need a replacement car if their car has been damaged due to a vehicular accident or business and recreational purposes. Enterprise can use this to their advantage because knowing the area that a particular branch is in, they can gauge the type of vehicles that they may need to carry in that location, example in a state where there is a lot of rough terrain customers may want a pick up truck.
Economic The state of the economy greatly affects Enterprise. If the economy makes a turn for the worse and the unemployment rate drops, people will then have to rethink their spending and prioritize their spending habits. People may choose to find an alternative form of transportation. In addition to this if insurance companies change their policies customers may have to start paying the difference for car rentals, this may lead customers to either choosing not to rent a car or not to then pay a difference to get an upgraded car. These situations will both affect the profitability of Enterprise.
If a situation like this occurs maybe Enterprise will have to focus their promotion to smaller sized cars versus a larger such as a SUV, so that the cost for the rental will not be as much. This will emphasize the fact that they have a vehicle to suit everyone’s needs. Natural/physical The world has changed over the past few years and a greater importance has now been placed on making the environment ‘more green’. This means a way of life that helps to maintain an ecological balance in the environment while preserving the planet and its resources.
Enterprise has taken a part in this by introducing fuel-efficient and hybrid cars to its fleet. This will attract more customers to rent from Enterprise because one they will help to contribute to keep the environment clean and also because they have hybrid cars they will also be able to save money because they will get more miles to the gallon. Political, Legal Politics also plays a major role in factors that affect Enterprise. Two examples, one if there is a political upheaval in another country it may cause oil prices to rise and second, if the government decided to raise taxes on cars.
Both of these situations would affect Enterprise because to compensate for these added costs they may have to increase the cost of rentals and the demand for rentals will go down, as some consumers may not be able to afford to rent a car. The company should be focused and aware of what is going on in the world both locally and abroad so that if a situation occurs or they see where a situation could cause a threat for them they have a system where they can use the price of one rental to offset the other so that consumers will not have to pay that much more for a rental.
Technological In the 21st century the world has become so technologically advanced that businesses now need to take part in social media. Enterprise has begun taking part in this, as they are on Facebook and Twitter. As the case has stated Enterprise is still lacking certain aspects of social media, example an iPhone app and YouTube, but hopefully within the near future they will be able to participate more in social media sites in order to gain an even greater customer base.
It may even help if they became more aggressive with commercials on TV, and added their tag line ‘We’ll Pick You Up’ this will help to bring consumer awareness to the company and the services they offer. Microenvironment Microenvironment is the factors that affect a company’s or a business’s operations. Collaboration Enterprise Company works together with insurance companies, and this helps to bring in a lot of their profits.
Insurance companies will pay the cost of a rental car, but then Enterprise will use this opportunity to then rent to the customer an upgraded car for an extra cost, which is how they are able to make an additional profit. This is a good ‘partnership’ and is a great benefit to Enterprise as insurance companies are filtering in a steady and constant customer flow. The reason why this has been able to be such a success is the fact that enterprise has so many locations, and this benefits the consumer because they will almost never have to go out of their way to rent a vehicle and as added value Enterprise will even pick the consumer up.
Competition Enterprise has become the largest rent a car company however two of their biggest competitors are Avis Car Rental and Hertz Car Rental. Avis has the upper hand over Enterprise because they also very responsive to customers needs and wants for example they have created self-service check-in options at airports as they also have apps on iPhone and iPod Touch application in addition to satellite radios and GPS systems.
Hertz is know for always being ‘first’ on the market with features such as Nationwide Emergency Road Service and On-Board Navigation System, and also a multilingual website. The company may need to do customer surveys to re-evaluate what needs the customers have that they are not fulfilling, and begin to implement the necessary ones that will help them to gain an even greater advantage over they other rental companies. Suppliers Enterprise’s greatest suppliers would be the car manufacturers that they buy vehicles from.
According to their website (enterprise. com 2012) Enterprise does have special guidelines and regulations that all suppliers must meet such as value, capacity, must be E business capable, have stability, diversity and must have rules and regulations that support a business environment. As mentioned earlier with times changing and a greater importance now being placed on ‘going green’ Enterprise may also be most interested in car manufactures that are able to supply them with the best fuel- efficient cars and hybrids for the best price.
This will help their customer base grow because having so many car manufacturers to purchase from they will be able to select from a variety of models and shapes in order to cater to all consumers by satisfying their needs and wants when it comes to vehicles, example a minivan for a family or a corolla for possibly a college student. Regulators Enterprises rents vehicles to people, so they need to ensure that all their vehicles are equipped with the necessary safety devices such as air bags and that all seatbelts are there and functional.
In addition to this the company needs to ensure that all the customers that they rent cars to have a valid drivers license to make sure that anyone they may be renting a car to is a responsible driver. This will show the consumers that whether through the physical car or through drivers on the road Enterprise, has taken that extra step to ensure road safety. This case study on Enterprise Rent-A-Car has been analyzed and through various examples it shows how it relates to the first two tiers of Weinstein’s Customer Value Funnel, Macro Environment and the Microenvironment, to enhance customer value.
References Weinstein, A. (2012). Superior Customer Value: Strategies for Winning and Retaining Customers (Third edition). Boca Raton, Florida: CRC Press-Francis & Taylor Group. Pg 235 www. enterprise. com . 2012. http://aboutus. enterprise. com/what_we_believe/supplier_diversity. html Grading Rubric A – MKT 5017: Customer Value Case Analysis 1 (CC1) Performance Criteria | Inadequate 0 | Developing 17. 5| Proficient 20 | Very Good 22. | Exemplary 25| Scores| MacroenvironmentalAnalysis | Does not provide an analysis of global business environment| Provides a partial analysis of global businessenvironment| Provides an analysis of global business environment| Provides a comprehensive analysis of global business environment| Provides a well written, comprehensive and insightful analysis of global business environment| | Microenvironmental analysis | Does not provide an analysis of market environment| Provides a partial analysis of market nvironment| Provides an analysis of market environment| Provides a comprehensive analysis of market environment| Provides a well written, comprehensive and insightful analysis of market environment| | Total(50 points max. )| | | | | | | Comments: _______________________________________________________________________ _______________________________________________________________________