Enterprise Rent-A-Car - What Opportunities and Threats Does Enterprise Face?

Question No. 1.

What opportunities and threats does Enterprise face?

Enterprise was the market leader of the car rental business and was the highest revenue producer. The main success of its business was its concentration on a single market segment and consistent delivery of services to its customers and care for employees. Thus, the industry of car rental was increasing significantly and hence there were number of opportunities and threats Enterprise could face in its few coming years.

Opportunities

• Working at enterprise offers real opportunity to their employees in terms of their career growth. Growing at Enterprise was faster than any where else. With advancement, there was an opportunity for significant increase in income.

• The branch offices were the key to success and since Enterprise had resources to expand they could increase the number of branches.

• Enterprise used profit sharing plans with their employees, higher the branch profitability higher the profit employees used to get. Hence this played as a motivator in terms of growing hard work, dedication and devotion within employees towards their jobs.

• Employees had decision making authority and autonomy since Enterprise had decentralized operations.

• Since Enterprise was one of the few companies who rented to someone under 25 years of age there was a great opportunity to capture the market with age group of 16-25. Enterprise could do this by renting funky, sport cars etc to match the lifestyle of this youth.

Threats

• Recruitment was the number one issue Enterprise was facing and if Enterprise were unable to recruit good candidates, they could lose the hard work, dedication, love and affection from its jobs which would bring problems to the company.

• People did not know much about Enterprise and hence this was another biggest drawback. If these conditions would prevail, Enterprise could start loosing their market share and enjoyment of handsome revenue as consumers would prefer competitors offer and build trust with them.

• Enterprise was targeting only the home-city market which could be dangerous in terms of loosing business if the competitors attacked that segment.

• Even after knowing Enterprise people were not ready to work with Enterprise

• One threat to Enterprise was the retention of staff due to long hours, stress and low pay. Since Enterprise always recruited the best candidates and retention of such employees could be a big loss to the company.

• Enterprise was not that competitive in terms of compensation due to which deserving candidates were