In-depth SWOT Analysis of Enterprise Rent-A-Car – An American Car Rental Agency

Services by Enterprise Rent-A-Car

• Alamo Rent-A-Car
• Enterprise Car Club
• Enterprise Car Sales
• Enterprise Rent-A-Car
• National Car Rental

Competitors of Enterprise Rent-A-Car

• Hertz
• Avis Rental Car
• Avis Budget group

Now that we got to know about the company’s function and their vast business globally, now let’s dig into the SWOT analysis of Enterprise Rent-A-Car.

SWOT Analysis of Enterprise Rent-A-Car

SWOT analysis is a planning technique to help an organization identify its strengths, weaknesses, opportunities, and threats. SWOT Analysis of Enterprise will help the company to assess the results to decide if they can use their strength as an advantage to increase the growth of the company or not. The weakness and threats of the company also need to be addressed before making any changes to their existing services.

To better understand the SWOT Analysis of Enterprise Rent-A-Car, refer to the infographics below:

So let us first start by looking at the strengths of Enterprise Rent-A-Car from the SWOT analysis of Enterprise Rent-A-Car.

Strengths of Enterprise Rent-A-Car

• Greater Relationship with Existing Suppliers: Enterprise car rental has a strong relationship with its suppliers and other members. the organization can increase its services by the skills of its suppliers and supply chain partners.
• Domestic Market: The domestic market in which Enterprise is operating is both a source of strength and a barrier to the growth of innovation. Enterprise can easily grow the market without much innovation but it will require the furthermost investment into research and development to enter the international market.
• High Margins: Enterprise charges a premium compared to its competitors, Enterprise resources are not only for the competitive pressures but also to invest in research and development.
• Strong Brand Equity and Brand Awareness: Enterprise is the most recognized brand in the domestic market. Brand recognition plays a significant role in attracting new customers looking for solutions in Customer service, Growth strategy, Leadership development, Marketing, Motivating people, etc.
• High Market Record: Enterprise cars have a highly successful record of both launching new products in the domestic market and also in various markets based on the insights from local consumers. Enterprise Car has inquired about various concepts in different markets and reached successful organizational development solutions.

Weaknesses of Enterprise Rent-A-Car

• Inventory Management: Enterprise is not efficiently maintaining the inventory and cash cycle. There is a huge scope of improvement in inventory management.
• Project Management: Project administration is too focused on internal delivery rather than considering all the interests of external stakeholders and supervising poor public relations and customer backlash.
• Low Return on Investment: Enterprise has a stable balance sheet, one metric that needs reflection is the return on invested capital. An organizational form in which Enterprise works in the most stable measure of profitability is the return on invested capital rather than one preferred by financial analysts such as return on equity and return on assets.
• Consumer Dissatisfaction: The demand for services has not gone down but there is a heated sense of dissatisfaction among the customers of Enterprise. It is shown in the reviews of multiple online platforms. Enterprise should concentrate on areas where it can improve the customer purchase and post-purchase experience.
• Implementation of Technology in Processes: Enterprise has combined technology in the backend processes but has still not been able to secure the power of technology in the front-end processes.
• Company Culture: It seems that the organizational culture of Enterprise is still ruled by turf wars within various divisions, leading to supervisors keeping information close to their chests. This can lead to serious roadblocks in future growth as information in silos can result in missed opportunities in the marketplace.

Opportunities for Enterprise Rent-A-Car

• Diminishing Cost of Market Entry and Marketing into International Markets: Globalization along with a growth in digital marketing and social media has considerably decreased the risks of market entry and marketing in the international market.
• E-Business and Social Media Oriented Business Models: The E-business model can help Enterprise to tie up with regional suppliers and logistics providers in the international market. Social media growth can help Enterprise to decrease the cost of entering a new demand and reaching customers at a significantly lower purchasing budget. It can also lead to crowdsourcing various services and consumer-oriented marketing based on the data and purchase behaviour.

Social media marketing and e-commerce are one of the major parts of digital marketing. It is important to learn these digital marketing skills for effective cost-cutting and reaching potential buyers. Students and freshers who want to start their fresh set-up with zero investment are also learning these skills.  

• Managing Rule and Business Environment: Enterprise operates in an environment where it faces numerous regulations and government conditions. The firm needs to cross over the environment by building strong relationships with political parties.
• Building Standardization: Enterprise can leverage this trend to decrease the number of contributions in the market and focus the marketing efforts on only the most successful products.
• Developing Technology Landscape: Machine learning and artificial intelligence increase the transformation of the technology landscape that Enterprise operates in. Enterprise can use these to develop efficiencies, lower costs, and change the process.
• Increase in Consumer Disposable Income: Enterprise can use the increasing disposable income to build a new business model where customers start paying progressively for using its services. 

Threats to Enterprise Rent-A-Car

• Controversies with Safety Measures: In the year 2006-08, Enterprise went through a controversy in which the company purchased Chevrolet Impalas without side-curtain airbags to save the company’s $11.5 Billion. The controversy started when the cars were released from their rental fleet with claims that side-curtain airbags were included. Such types of claims if continued in future will affect the Enterprise very badly.  
• Government Laws & Bureaucracy: Enterprise should keep a close eye on the fast-changing government regulations under the increasing pressure from demonstration and non-government organizations, especially regarding environmental and labour safety aspects.
• Credit Binge Post-2008 Recession: Enterprise should focus on reducing its dependency on money to grow. The party has endured for more than a decade and rollback from the Fed can result in huge interest costs for Enterprise.
• Developing Bargaining Power of Buyers: Over the years the bargaining power of customers of Enterprise has increased significantly which is putting down pressure on prices.
• US-China Trade Relations: Enterprise Car has adjusted to China for its next stage of growth. But there is rising pressure between US-China trade relations and it can lead to protectionism, more conflict into international trade, increasing costs both in terms of labour cost and cost of doing business.
• Compressing the Middle Class in Developed and Developing World: The growing disparity is one of the biggest threats to not only globalization but also to capitalism. Enterprise first hand testified the impact of it where it has seen lower demand of its products from middle-class customers in the US and EU market.

This ends our comprehensive SWOT analysis of Enterprise Rent-A-Car. Let us conclude our learning below.