Case Analysis 1 Enterprise Rent-A-car
Case Analysis 1 Enterprise Rent-A-Car Instructions
- Please read the case: Enterprise Rent-A-Car and complete the case analysis.
Question to be addressed in your case analysis:
With the rise of ride-sharing services (i.e., Uber and Lyft), car rental companies are losing customers today. Use the information from the case study and conduct your own research to discuss what Enterprise should do in this competitive market. Please focus your analysis on Enterprise’s competitive advantage.
Please make sure to review the grading guidelines and rubric prior to working on this case analysis. Please include the following in your case analysis.
- Cover page
- Summary of key marketing strategy issues.
- Evaluation of key issues
- Propose and justify your own solutions
- Recommendations
- References
- Please apply marketing concepts or theories introduced in this course or you find from external sources.
Note: please do not rely on the information provided in this case alone. When the case study was published, Uber and Lyft were not threats to the rental car industry. You need to conduct your own research on the current situation.
Case write-ups should be at least 5 pages not including cover page and reference page, double spaced, 12 font size in Times New Roman. Please submit it in MS Word format.
Enterprise Rent-A-Car
History
The American car rental industry was born on August 20, 1916, when Josiah Ellis “Joe” Saunders, an entrepreneur living in Omaha, Nebraska, ran a seven-line classified ad offering “Automobiles for Hire.” Saunders’s fleet consisted of one vehicle—a Model T Ford—that he rented for ten cents per mile.
The industry Saunders created grew dramatically with the advent of commercial air travel after World War II. In 1957 in St. Louis, Missouri, Jack Taylor founded the company that would become Enterprise Rent-A-Car (named after the aircraft carrier on which Jack had served as a pilot in World War II). Jack, a successful sales manager at a Cadillac dealership, started the company to lease cars, but within a few years he discovered a lucrative market for short-term rentals.
Jack focused Enterprise on the local rental market, setting up offices in neighborhoods rather than at airports. He believed that increasingly car-dependent Americans would welcome a local option for renting cars when their own vehicles were being repaired. This was the Enterprise way—“convenient local rentals right where customers live and work.”
After court decisions in 1969 required American insurance companies to begin reimbursing for auto rentals while an insured owner’s car was being repaired after an accident, Enterprise began cultivating referral relationships with major insurance companies. This move brought in more business for Enterprise and enabled insurance companies to offer enhanced service to their policyholders…..Continue Reading….