Enterprise Rent-A-Car History

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Company Analysis: Enterprise Rent-A-Car
History
Enterprise Rent-A-Car is an American company renting cars. It was founded by Jack Taylor in 1957 at St. Louis, Missouri, U.S, as an executive leasing company. It is headquartered in Clayton, Missouri, United States and operates in the car rental industry. Enterprise Rent-A-Car is Enterprise Holdings, Inc.’s subsidiary. The company was originally named Executive Leasing Company before being changed to Enterprise Rent-A-Car in 1969. Enterprise Rent-A-Car acquired the Vanguard Automotive Group in 2007. Apart from renting cars and commercial trucks, Enterprise Rent-A-Car manages commercial fleet and sells used cars. It is the largest company renting cars in the U.S with presence in over 5,000 locations …show more content…

Enterprise Rent-A-Car encountered poor performance and low sales during the unstable economic period. More so, the company has failed to address the safety of its customers. Between 2006 and 2008, the company was accused of purchasing over 50,000 Buick LaCrosses, Chevrolet Impalas and Chevrolet Cobalt cars lacking the side-curtain airbags to lower the costs and increase the profits. The omission of the side-airbags is a violation of customers' safety measures. It was unethical for the company to be less concerned about the safety of its customers. This controversy had a negative impact on the revenues of the Enterprise Rent-A-Car company and adversely affected the reputation built over the overs because the customers were concerned about their safety. Enterprise Rent-A-Car has also been accused of paying the employees low salaries compared to the …show more content…

Nevertheless, the company should behave in an ethical manner and avoid all forms of discriminations in the workplace.
Porter's Five Forces
The Porter's five forces will help the Enterprise Rent-A-Car to identify the competition in the car rental industry to beat rivals. The Porter's five forces evaluate the threat of new entrants, the bargaining power of buyers, the bargaining power of the suppliers, the threat of substitute products as well as existing competition.
The Threat of the Substitute
There are several substitute products in the car rental industry such as personal cars and public transport that the customers use to meet their leisure and business demands. Technological advancements such as video conferencing may completely discourage the need to travel. It means that Enterprise Rent-A-Car faces a high threat of substitutes in the market (Kotler & Armstrong, 2014).
The Bargaining Power of

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