Business Strategy on Enterprise Rental a Car

Prep Questions

1. All car rental companies provide customers with the temporary use of a car.  How do Enterprise’s original target consumers in the local or “home-city” market - and their needs- differ from the target customers of their major competitors such as Hertz and Avis? How does Enterprise match (or not) the needs of their local market customers?

[Carrie Qu]

How do Enterprise’s original target consumers differ from competitors?

Although car rental companies are the same in terms of their business nature of renting the temporary use of cars, they are more horizontally different due to customer’s different purpose of using the car. Typical car rental companies, such as Hertz and Avis, usually catch the “Business rental” people who need a car for trip or business for customers. These customers are regular clients, looking for reliable and efficient service in major transportation hubs like airports. The most important factor to them is that cars should always be available when they need it and at the requested times. Reliable and often luxury automobiles are mostly demanded by these clients.

Enterprise expands the range of customers to the local residential area to service the Home-city rentals. Unlike Hertz & Avis regular customer inflow, these customers’ visits are irregular and infrequent, and they need rental cars as replacements when their cars are wrecked or in the body shop being repaired. The convenience of pick-up or drop-off service with a friendly and considerate attitude are the key, as the customers are usually worried, low in mood in case of unexpected accidents and often stranded far from home. Contrasted with luxury and middle-to-high end cars for business rental customers, small economy cars are usually sufficient for this type of segment. Moreover, Enterprise addresses the needs of leisure/discretionary rentals customers who rent quality cars with more storage space with special purpose like treating guests or family trip....