Enterprise Rent-A-Car started with 17 cars in the early 1960's and today is a leading niche player (largest fleet 350,000 and higher profits ) in the car rental market in the U.S. The company engages in 3 key market segments - cars rented for business and cars rented for travel and recreation, as well as for emergency unanticipated rentals (due to accidents and theft) Enterprise Rent-A-Car has developed and serves its own niche (emergency unanticipated rentals). Having accepted the dominance of Hertz and Avis in airports, concentrated on emergency rentals and became a niche leader. The niche is very lucrative and serves approximately 75 % of market. But what competitive advantages Enterprise Rent-A-Car created, that difficult to be emulated by competitors?
Enterprise Rent-A-Car hires executives strong entrepreneurial spirit, dedicated to friendly customer service. The company has its own tough management training program. Summing up, Enterprise Rent-A-Car has chosen to rent cars quite different from competitors, manage and monitor their large fleet, create local links, and provide friendly customer service. The Verdict: Devotion to niche and specialization in service. Good strategy and effective execution. O2ibm Visit this Open Forum |
O2ibm Group - Discussion & Resources
20100808
A niche market strategy that's hard to be emulated
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