Enterprise’s success Essay

Do you think that Avis/ cps will be able to replicate initiatives success in the local railway car rental securities industry? Its hard to believe that Avis/ round would be able to replicate Enterprises success (at least in the near term) in the local car rental market. addicted their current dominance in the market, relationships with auto shops/dealerships/insurance companies, and reservation systems direct larboard with insurers, Enterprise is the most well positioned car rental comp whatsoever for discretionary and insurance repair/ permutation rentals. Dominance Enterprise initially sacrificed investment in the airport market in order to pretermit the local market. With its 6,000 branches, one wonders how Avis/ hertz would begin to match Enterprises footprint? I presuppose this could only be accomplished via actual capital investments on the parts of Avis/Hertz coupled with initial price breaks for customers in order to tear business away from Enterprise.This action, how ever, would eat into the profitability of said market. Additionally, Avis/Hertz would have to compete with the burgeoning car sharing industry. These obstacles appear to be too significant to overcome so late in the game. Relationships The ties established between Enterprise and the auto shops/dealerships/insurance companies are deeply root and well founded. In order to convince these institutions that an Avis/Hertz relationship would also be beneficial (or would be superior to Enterprises), a compelling sales pitch would need to be made. What can Avis/Hertz offer these institutions that Enterprise isnt currently providing? The products/services of all three-car rental agencies appear to be of correspond quality (if not a slight edge given to Enterprise), so what is the end benefit of parvenue relationships to auto shop/dealership/insurance company?Interface The case does not quantify any initial investments made by the insurers to develop the reservation interface, but one must assume the investments were substantial (either measured in capital or time). In order to be profitable/dominant in the local market, Avis/Hertz would either have to abolish these ties, establish new ones (assuming there are untapped institutions), or run their systems in parallel with Enterprises. The latter appears to be most likely, and that could result in profit erosion, as Avis/Hertz would likely have to reduce prices in order to gain market share.I question whether an auto shop/dealer/insurer would even want to train employees how to determination a competitors system, unless there is asubstantial upside in doing so. Side follow My only reservation in giving Enterprise sole competitive advantage in this space is their apparent penchant for risk. By handling all of its own vehicle sales, has Enterprise merely been friendly or are they simply more skilled at the buying/selling of their fleet? wedded Enterprises long-term success, one must assume the latter