Enterprise Rent a Car
1-0 SUMMARY
Jack Taylor began his business of Enterprise Rent-A-Car in 1962 in St. Louis, Missouri. Following the successfully philosophy of, "Take care of your customers and employees first, and profits will follow", Enterprise grew steadily to become the nation’s largest rent-a-car company. What separated Enterprise from its other competitors such as Hertz, Avis, and Alamo was the fact that the company focused on two segments of the home-city market rather than appealing to the airport-rental market.
The first market was the replacement market that targeted towards local customers in the Enterprise neighbourhood locations who needed rental cars as replacements while their cars were being serviced. Enterprise employees would often visit the referral sources such as the insurance agents and auto mechanics with gifts, thereby establishing a personal relationship between the local Enterprise branch and the referral source. Creating this environment of good will encouraged agents and body shop workers to continue to recommend Enterprise over other companies. Additionally, Enterprise rental rates were lower then rates of comparable rental companies due to location of its branch offices. Contrary to the normal practice, Enterprise had locations in the city and suburban areas instead of locating close to the airport. Although this may at first seem counterproductive, having these locations actually aided Enterprise substantially. The cost of property near the airport was much higher then property in more localized city areas. Enterprise would pass the savings from property and rent onto the customer, and was therefore able to offer lower rates with comparable or greater service. Careful maintenance of the rental cars allowed Enterprise to keep its rental cars for longer then standard for airport rental companies. The low turnover rate of vehicles generated savings for Enterprise, which was then passed to the customer in the form of lower rates. By running
Jack Taylor began his business of Enterprise Rent-A-Car in 1962 in St. Louis, Missouri. Following the successfully philosophy of, "Take care of your customers and employees first, and profits will follow", Enterprise grew steadily to become the nation’s largest rent-a-car company. What separated Enterprise from its other competitors such as Hertz, Avis, and Alamo was the fact that the company focused on two segments of the home-city market rather than appealing to the airport-rental market.
The first market was the replacement market that targeted towards local customers in the Enterprise neighbourhood locations who needed rental cars as replacements while their cars were being serviced. Enterprise employees would often visit the referral sources such as the insurance agents and auto mechanics with gifts, thereby establishing a personal relationship between the local Enterprise branch and the referral source. Creating this environment of good will encouraged agents and body shop workers to continue to recommend Enterprise over other companies. Additionally, Enterprise rental rates were lower then rates of comparable rental companies due to location of its branch offices. Contrary to the normal practice, Enterprise had locations in the city and suburban areas instead of locating close to the airport. Although this may at first seem counterproductive, having these locations actually aided Enterprise substantially. The cost of property near the airport was much higher then property in more localized city areas. Enterprise would pass the savings from property and rent onto the customer, and was therefore able to offer lower rates with comparable or greater service. Careful maintenance of the rental cars allowed Enterprise to keep its rental cars for longer then standard for airport rental companies. The low turnover rate of vehicles generated savings for Enterprise, which was then passed to the customer in the form of lower rates. By running