Buisness Strategy

Porters Five Forces Model

BARGAINING POWER OF CUSTOMER
 LOW/HIGH

         – The bargaining power of customer is high and low because it’s dependent on the customer’s financial resources (Corporate discounts). If someone would want to rent a car it would have a low impact because the amount of money spent on an automotive would not make a large impact on Enterprise revenues. Companies would have a high bargaining power because companies have a higher buying power and could purchase more vehicles. Losing a potential customer such as a company would bring loss in revenue for Enterprise.

BARGAINING POWER OF SUPPLIERS

       MEDIUM

         – There are many automotive industries that supply vehicles to Enterprise. So if one vehicle industry decides to raise its prices consumers can choose from other industries.

THREAT OF NEW ENTRANTS

         LOW

          –Its difficult to start a rental service company, there is an extensive amount of resources. With so much competition it’s difficult for a new entry to become profitable in a highly competitive industry such as automotive rental industry.  Also there are 2 Enterprises located 5 minutes from one another in Raritan.

       RIVALRY

         MEDIUM:

          – There are a few competitors in the Rental and Leasing Services industry near Raritan Enterprise. With competition around the only way Enterprise could get an upper hand is by lowering its prices and better its customer service. With the competition of this rental car being so high, companies share similar pricing. The Nearest Rentals are Budget and Alamo, which are located 30 miles away in Flemington, NJ. Alamo is also owned by Enterprise so it isn't truly a competitor.

THREAT OF SUBSTITUTES

LOW

–There are a few competitors. There is mostly Enterprise Rent A Cars specifically near Raritan Enterprise. Realistically consumers can use taxi, train, and bus, as other forms of transportation.
             

Competitive Strategy 

Enterprise Rent-A-Car primarily focuses on Industry-wide differentiation.

Enterprise's slogan is, "we will pick you up". They live by that saying and it separates them from their competition heavily. Enterprise will literally pick you up wherever you are and return you to their location to rent out a car. This creates a better relationship with customers and makes customer service much better. No other companies offer this within the car rental industry.

When customers rent out from Enterprise, the corporation makes sure that their cars are extremely clean inside and out so that the customers have no complaints at all.The major difference between Enterprise Rent-A-Car and other big name cooperation's such as Avis, Budget, and Hertz is the fact that they offer a Car share program. This program allows customers to be able to rent at the young age of 21. Car share is mostly for customers under the age of 25, but anyone can participate. The program also offers the ability to have customers choose from a wide range of cars and car protection plans. Enterprise also offers 24/7 car service which allows customers to call and ask any questions they need to be answered.