Madm760 Company Profile of Enterprise Rent-A-Car

Company Profile of Enterprise Rent-A-Car

Section 4: Recommendations

Angel Parker

MADM 760

LSUS

SECTION 4: RECOMMENDATIONS

For years, Enterprise Rent-A-Car’s business strategy has led them to continuous success and dominance in the car rental industry.  In order to remain a top player in the industry, ERAC must address several challenging issues discussed in previous sections.  Based on SWOT analysis research of the car rental industry and organizational analysis of Enterprise, there are several recommendations that could help them improve their business strategy and adapt to emerging trends.  This section outlines a list of recommendations along with justifications, that ERAC could adopt to help with their position in the industry and avoid issues with potential threats.

        The most important concern that Enterprise should address is its limited scale of operations.  For many years, Enterprise’s presence outside of North America was limited to a few markets in Europe.  It wasn’t until Enterprise’s acquisition of the National and Alamo brands in 2007, when they first entered other global markets ("Enterprise to Highlight Global Expansion at International Car Rental Show," 2016).  That acquisition included the franchise markets in Latin America and The Caribbean.  Enterprise’s limited scale of operations as compared to its’ competitors is a concern for the company that needs to be addressed. One way Enterprise can help their issue of global expansion is by partnering and creating strategic alliances with companies and organizations overseas that can help build an extensive network.  Similar to the way ERAC has partnered with the National Collegiate Athletic Association (NCAA) and the Major League Baseball (MLB) teams in North America (Enterprise Holdings, Inc., 2018).  By becoming an official partner of a Euro League or any other overseas league, Enterprise would be the official car rental provider for officials, players, and staff of the organization.  The partnership would also allow Enterprise to advertise their brand at the stadiums where these leagues compete and local television stations that broadcast the games.  Partnering with International leagues or even American businesses that operate internationally will help create a strong reputation in those markets that Enterprise alone may not be able to reach.  The agreement should be sealed with a minimum three-year contract that outlines the terms and legal matters.  Creating international partnerships will help generate revenue while also giving management the opportunity to learn and get a better understanding of local cultures and characteristics.

        With the development of technology and the way social and political factors affect companies and the way customers do business, it is important for Enterprise to be able to adapt accordingly. One way Enterprise can take advantage of the evolution of technology is by creating an enhanced user experience through digitalization. Customer’s preferences are changing due to digital and mobile technology. Enterprise should develop a new mobile based app that not only allows users to book reservations but also initiate the check-in procedure and manage the rental during the period used.  The perfect app would allow customers to create a user profile with all of the necessary information and prompt them to add a copy of their driver’s license for security purposes. The reservations system would allow the customer to choose the desired location and the system would generate a list of cars based on the availability. The customer would be able to choose the size, color, and style of the vehicle they want to reserve. Customers would also have the option to initiate the verification and check-in process before arriving at the location.  This would help create a more streamlined process by saving customers and Enterprise employees time and prevent them from spending time behind a rental counter. Once in the rental, customers would have access to the unit history, maintenance request, and even extension request all through the app.  This revamped app would help business operations significantly.  Enterprise rental has already made a big step by adding the Enterprise LaunchPad mobile tablets, which are transforming transactions into customer interactions by digitalizing some steps in the administrative process (Enterpriseholdings.com, 2018). However, the tablets mainly benefit the employees. By developing an enhanced user-friendly app, it would benefit the customer and create value.