Erac Case Study
Enterprise Rent a Car 1. How has ERAC defined its service differently than that of the typical national car rental company?
ERAC defined its service differently than that of the typical national car rental company by: * Focusing on a different segment of the car rental market. This is done by moving their focus away from short term, onsite rental for travellers and focuses more on hometown market. This means that ERAC will loan their vehicles to their customers for an extended period of time, not just for them to travel around when they visit the area. * Buying cars from a wide variety of American, Japanese and European market to reduce cost. Also keeping these cars for six months longer than other car rental companies * Connecting its 4000 offices via an exclusive 1800 number which allows their customer to locate the nearest offices by dialling one number * Delivering to customers for convenience * Offering a rate that is 30% lower than competitors * Offering a range of different vehicle catering to customer’s preferences * Having a dedicated local Enterprise Account Service representative that manages every aspect of client’s fleet
2. What features of its business concept allow ERAC to compete effectively with the existing national rental car companies?
The feature of ERAC’s business concept that ensures effective competitive edge with national rental car companies includes: * Doing whatever they can to create convenience for their customers. Like being accessible at any time. Picking up and dropping off customers at their home or deliver the cars to their customers * Offer competitive rate of hire for the vehicles even though the service comes with so many
ERAC defined its service differently than that of the typical national car rental company by: * Focusing on a different segment of the car rental market. This is done by moving their focus away from short term, onsite rental for travellers and focuses more on hometown market. This means that ERAC will loan their vehicles to their customers for an extended period of time, not just for them to travel around when they visit the area. * Buying cars from a wide variety of American, Japanese and European market to reduce cost. Also keeping these cars for six months longer than other car rental companies * Connecting its 4000 offices via an exclusive 1800 number which allows their customer to locate the nearest offices by dialling one number * Delivering to customers for convenience * Offering a rate that is 30% lower than competitors * Offering a range of different vehicle catering to customer’s preferences * Having a dedicated local Enterprise Account Service representative that manages every aspect of client’s fleet
2. What features of its business concept allow ERAC to compete effectively with the existing national rental car companies?
The feature of ERAC’s business concept that ensures effective competitive edge with national rental car companies includes: * Doing whatever they can to create convenience for their customers. Like being accessible at any time. Picking up and dropping off customers at their home or deliver the cars to their customers * Offer competitive rate of hire for the vehicles even though the service comes with so many