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Q1 Enterprise’s Strategic positioning was aimed at doing things differently as they targeted the local

rental market (where there was a scarcity) instead of focusing on the airport market. Their objective was
to provide convenient rentals close to where customers lived and worked. They satisfied the needs and
Demands of customers looking for a rental car they could access easily and at an affordable price.
● Enterprise invested $10 million to refine their customer service (ESQi) that optimized the
percentage of “completely satisfied” customers from 67% to 80% within a decade.
● Their initial trade-off of choosing the local market over the airport market gave them
competitive advantage. But Enterprise was able to shift focus so it entered the airport
market, and soon acquired Alamo and National, and registered a remarkable rise in market
share and revenue growth in millions.
● Enterprise also had access based positioning as they established onsite offices nearby auto-
dealers and repair shops, so customers had easy access to their services.
● Enterprise also managed to consistently leverage its resources by not only continually
reassessing its Scope by entering the airport market, car sharing market at appropriate time,
but also, customizing its resources (eg. WeCar) during diversification. Enterprise was also
better at fleet management as they managed to keep its cars on the road 6 months longer
than its competitors.

Q2.
● Enterprise employees were thoroughly trained and entrenched into the company culture, so
inimitability was achieved through the time invested in the process and the causal
ambiguity.
● Human capital is definitely an asset that builds over time and depreciates slowly. Enterprise
ensured this by giving ample opportunities of growth within the company, and allowing
each branch to have an entrepreneurial spirit.
Q3. Threat of Buyers: High. Since its rivals used “program cars” that are returned 4-16 months later,
they are likely to have newer car models than Enterprise. Giving customers the option to choose
from newer and more energy efficient models could benefit Enterprise. Customers also have so
many options to choose from that their bargaining power could increase.
● Threat of Supplier: Low as Enterprise has managed to keep its supplier relations in top
shape, and is able to switch between suppliers easily.

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