Enterprise Essay

428 WordsOct 16, 20092 Pages
Enterprise’s competitors who have been starting to mount a larger presence in the local market segment of the rental car industry have an uphill battle to fight. Enterprise’s success will be difficult for its competitors to duplicate because of the co-specialization and fit among Enterprise’s capabilities which cannot be easily imitated. One reason why Enterprise’s capabilities will be difficult to imitate is because of its history that started with Jack Taylor’s first leasing company. From there, Enterprise developed a bunch of quirky yet simple hiring and promotion practices that has yielded a huge network of local branches. Since each of these branches operates like an independent franchisee, each branch’s team is a co-specialized unit that wants to excel due to the incentive structure. Furthermore, each employee of Enterprise starts off as entry level management trainee. Therefore, those who stick with the company have the advantage of a distinct leaning curve as they thoroughly know the local rental business. The employees are also very productive as their pay is tied to profits. The formidable scale of Enterprise’s network branch is perhaps the biggest challenge facing prospective local market competitors. Since Enterprise’s network is so large and is still growing, it is highly likely that a rental car agency moving into the local sector would be competing directly with Enterprise for customers. Since Enterprise has such a strong reputation in the local rental industry (as evidenced by their extraordinarily high ESQi scores), it would be very difficult for a competitor to attract people who have already used Enterprise’s services. Furthermore, since Enterprise’s affable employees have formed such strong relationships with repair shops and insurance companies, thereby garnering their

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