Rent-A-Car Enterprise

Rent-A-Car Enterprise is a multinational company that has an approximately one million vehicles in its rental fleet globally. Jack Taylor founded the enterprise in Missouri in the year 1957 (“Enterprise Rent-A-Car”). He started with just seven cars and invested his ideas and money in the leasing of cars. In the United Kingdom, the enterprise has about 47,000 rental fleets (“Enterprise Rent-A-Car”). This makes it the largest car rental organization in addition to being the largest purchasing company of used vehicles in the country. It has become now the largest rental company in the world. It employs about 68,000 employees and in 2011 it had annual sales of about $14.1billion (“Enterprise Rent-A-Car”).The company is growing rapidly given the various strategies put forth by the management of the company.

Rent-A-Car Enterprise Case Study-Background

Enterprise program that was initiated by the management of the company in 2005 was meant to solve the environmental issues and address the cost of mileage reimbursement and in that context increase the affordability to its customers (“Enterprise Rent-A-Car”). Therefore, Enterprise came up with WeCar club scheme that was meant to help the public bodies and local authorities in reducing the emissions of carbon from the vehicles of their employees in addition to reducing costs. The company realized the effort put by governments across the world on fighting global warming and in this pursuit it had to come up with a product that is more eco-friendly. Therefore, it created WeCar, a program that would offer its customers an hourly rate that is affordable. This program provides vehicles that are efficient in fuel consumption or those that help solve environmental issues. It also assists in reducing the number of cars on the road so that there is a significant contribution to a clean environment.

Various Issues of Concern

Enterprise wanted to solve environmental issues of pollution by developing the WeCar. It also wanted to reduce the cost of mileage reimbursement and by doing so; it would be contributing to affordability rate of customers. The company’s significant achievement is portrayed by the immediate response to external environment with new services and products. Therefore, it increases the spirit of entrepreneurship and consequently helping customers to make decisions at local levels. Furthermore, this program is encouraging new avenues from being reviewed so that the company remains as the leader in the market (Taylor and Nigel 267). The foundation of the company is based on the need to see that their foundation values are met. These values include providing the most valuable brand, listening to customers and providing excellent services to customers.

Main Problem

The company had realized the efforts of many countries in the fight against the environmental problems that pose a great danger to the world including the global warming. In this regard, it had to come up with a program that would contribute to a cleaner environment and less pollution. WeCar was the solution to this problem. The car was developed to establish an outlet that has only green vehicles so that it could serve better the environment and continue being a leading Green Company (“Enterprise Rent-A-Car”). More so, the company developed and adapted this new technology in an attempt to provide the highest level of convenience and the best service to its customers who had become conscious of the environmental issues.

Alternative Courses of Action

Enterprise is engaging in many other marketing strategies other than the above product strategy. One of these other alternatives is diversification strategy. It has put much effort into diversification strategy. This strategy entails widening the scope of the organization to cover different sectors in the market. The company is prone to issues that are new, and there is the need to increase the investment skills. It has been exploring new opportunities and avenues for its business. One of these diversification alternative courses of action includes the CarSales business program, which was established in 1962 (“Enterprise Rent-A-Car”). It entails selling those vehicles that are used for both the business and the public. Currently Enterprise is rated as one of the largest used cars sellers in America.

The Company also purchased Centric Group. In 1973 when there was a crisis on energy, fuel became scarce and expensive (“Enterprise Rent-A-Car”). Many consumers went for small cars and those that are economical. This contributed to drop in sales of used cars and Enterprise depended on that market in selling its vehicles. The future of Enterprise became uncertain and therefore the need to diversify by buying Centric Group, which had developed out of Keefe Coffee Company acquiring small and underdeveloped enterprises, would add more opportunities to Enterprise. More so, the company has invested in Mexican Inn Chili Products. However, due to inexperience in food packaging and goods packaging the company has ended investments in this area as it experienced losses. Nevertheless, it was a valuable opportunity for the company to learn about making viable investments. This explains why its new investment of acquiring TRG Group, which deals with manufacturing of luggage, travel accessories, and backpack packs, has been successful.


Evaluation of Alternatives Based upon the Criteria Selected for this Purpose

All these alternatives of Enterprise are carried out with the aim of achieving market growth.  The company aims at increasing the market share by engaging in these investments strategies. Its focus is to see growth in the sales or the turnover (Taylor and Nigel 270). In addition, the company aims at enhancing the strength of its brand, creating loyalty among customers and managing the costs effectively so that there would be an increase in the profitability levels. The common market goal for the company is to achieve growth. This is being achieved internally by providing the WeCar and externally through investing in other enterprises as it has done by investing in TRG Group. Inorganic growth, in this case, has been achieved through the acquisition of new companies such as Centric Group that it acquired (“Enterprise Rent-A-Car”). Benefits arising from the growth of Enterprise would include efficiencies that arise from using technologies, improved power of buying and the ability to recruit more specialists that can improve the process of decision-making.

Selection of a Course of Action-Diversification

Diversification entails developing new products and then putting them into markets. It is a risky strategy, as business tends to expand in an area that it is outside its core experiences and activities (Rugraff and Michael 106). It is also risky as the business is trying to win new audiences. More so, the company has to bear the costs of developing a new product. By diversifying into new products such as in the manufacturing of traveling accessories, Enterprise would be spreading its risks. This is through merging and acquisition.

Implementation of the Action

The enterprise must evolve its brand to diversify successfully. It should tap experience and skills in developing its brand that would be of great value to the customers. Developing a unique brand is a key aspect in ensuring that the company remains on the path to maintaining a lead in the market (Rugraff and Michael 107).  The company should simplify the design of elements for its logo to make it more attractive. The company can streamline and evolve the logo further to inform their future branding decisions. After making a great brand, it is important that the new market is analyzed so that the company is aware of the growth opportunities in the market. Finally, it should create a more modern retail outlet across the entire company.


Diversifying into viable business requires full foresight and this may be hard to come by. There is the need for the company to analyze the new business before it can diversify fully. In many cases also, creating a unique and attractive brand for the company is not easy and require experience. Enterprise had to contact Monigle in creating a superb brand (“Enterprise Rent-A-Car”). Getting full cooperation of all stakeholders during implementation boils down to how these stakeholders are motivated and as such, it is imperative that they remain motivated.


Marketing strategies constantly evolve as they adapt to the changing conditions in the market. Enterprise has demonstrated effective marketing strategies that continue to make it a leader in the market. Even if the marketing strategies change for Enterprise, one thing that remains is their focus. The need to provide high-quality customer services has remained core to the company. This is what enables Enterprise to continue enjoying a significant share in the market for more than fifty-five years. In this regard, the customer is the king in a business and by focusing on their needs effectively will drive the business into high performance.


Works Cited

“Enterprise Rent-A-Car.” About Enterprise Rent-A-Car, Enterprise, (n.d.),

Rugraff, Eric, and Michael W. Hansen. Multinational Corporations and Local Firms in Emerging Economies. Amsterdam: Amsterdam University Press, 2011. Print.

Taylor, Michael, and Nigel Thrift. The geography of multinationals: studies in the spatial development and economic consequences of multinational corporations. Vol. 37. Routledge, 2012.



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