Enterprise Case

In: Business and Management

Submitted By DavyNaarden
Words 922
Pages 4
1. In what industry does Enterprise Rent-A-Car compete?
Enterprise Rent-A-Car operates in the Car Rental Industry, an industry with a total market value of $20 billion. The industry consists of two segments: the airport market and the local market. Both segments account for about half of the total market value.

The Airport market is a competitive market, targeting business and leisure segments with companies mostly competing on price, vehicle availability, brand reputation and customer innovation. The local market is comprised of two different segments, serving two different needs 1) discretionary rentals and repair and 2) insurance replacement rentals. Discretionary rentals are less cyclical in demand and handle lower prices than rentals in the airport market. These rentals were mostly done for leisure and business purposes. Insurance replacement rentals on the other hand were unplanned and involuntarily. This segment mostly compete on flexibility, trust and reliability of the rental company.

At the time of the case, only about 10 percent of Enterprise’s offices were focused on the airport market, whereas the other 90% is focused on the local market.

2. What is Enterprise’s positioning relative to other incumbent competition like Hertz or Avis

How does Enterprise’s differentiate its value proposition from that of Hertz and or Avis

An effective value proposition communicates what a customer can expect to receive by using a product. Think of the value proposition as what you are promising the customer. Value is often the difference between a customer’s perception of the cost versus the anticipated benefits realized. The benefits encompass not only the direct benefits of reaching a desired goal, for example 20% whiter teeth, but also the indirect benefits like ease of use.
Contrast this with a positioning statement which defines a product’s…...

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