Enterprise’s success Essay

Do you think that Avis/ round will be able to replicate go-aheads achiever in the local railcar rental marketplace? Its toilsome to believe that Avis/ hertz would be able to replicate Enterprises success (at least in the near term) in the local car rental market. Given their current dominance in the market, relationships with auto shops/dealerships/ amends companies, and reservation systems direct interface with insurers, Enterprise is the near well positioned car rental company for discretionary and redress whet/replacement rentals. Dominance Enterprise initi ally sacrificed investment in the airport market in order to dominate the local market. With its 6,000 branches, one wonders how Avis/ bike would begin to match Enterprises footprint? I guess this could solely be accomplished via substantial capital investments on the separate of Avis/ bike coupled with initial price breaks for customers in order to dissipate business away from Enterprise.This action, however, would eat into the profitability of said market. Additionally, Avis/Hertz would establish to compete with the burgeoning car sharing industry. These obstacles appear to be too epochal to overcome so late in the game. Relationships The ties established between Enterprise and the auto shops/dealerships/insurance companies ar deeply rooted and well founded. In order to convince these institutions that an Avis/Hertz relationship would also be sound (or would be superior to Enterprises), a compelling sales rake 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 play off quality (if not a slight edge given to Enterprise), so what is the end benefit of new 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 mustiness fasten on 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 in that location atomic number 18 untapped institutions), or run their systems in parallel with Enterprises. The latter(prenominal) 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 tear down want to train employees how to use a competitors system, unless there is asubstantial upside in doing so. Side note My only reservation in giving Enterprise sole competitive reinforcement in this space is their apparent penchant for risk. By handling all of its own vehicle sales, has Enterprise merely been lucky or are they simply more skilled at the buying/selling of their swift? Given Enterprises long-term success, one must assume the l atter