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Car Enterprise’s Competitive Advantage and Threats Case Study

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Updated: May 11th, 2021

What were the sources of competitive advantage the Enterprise has been able to capitalize?

The major sources of the company’s competitive advantage were innovation and people.

Innovation

The founder of the company saw the potential of the local market and focused on that niche (p. 1). The company managed to come up with other creative methods and services. For instance, Enterprise offered car-sharing services that involved hourly rental (p. 9). Such innovations attracted customers as new services tended to address people’s needs and were consistent with the changes occurring in society. The use of sophisticated software also contributed to the company’s growth and development (p. 12).

People

As for people, the company invests in its personnel and provides comprehensive training (p. 2). The company nurtures its top managers and leaders as the vast majority of these positions are occupied by people promoted from other posts. The focus on innovation and manpower can be regarded as the source of the organization’s competitive advantage. The rewarding system is also effective as people are motivated to work hard and develop. Bonuses can make up to 90% of the salary (p. 2).

Why are people so important to its success?

People can be regarded as one of the central assets of any company as individuals are the source of innovation, creativity, as well as high-quality services provided to customers.

Turnover

The training provided to the employees helps them address customers’ needs, which translates into gains for the organization. As for the turnover, it can be regarded as considerable. However, it is justified since the expansion of the business enabled its employees to go up the ladder (p. 3). At the same time, the company still has some top managers who were not nurtured within the company, which is an effective strategy since these people are likely to have other perspectives and views. The overall human resources management is effective as it manages to motivate people to work hard and meet customers’ needs.

Rewarding

The rewarding system (bonuses and promotions) is successful. One of the most effective strategies is to tie personal achievement with team performance (p. 2). Employees are motivated to help members of their team and focus on the performance of the entire department, which positively affects the development of the organization. The competitive environment is replaced by the culture of collaboration.

What are some of the threats that would be of most concern if you were leading Enterprise?

Hertz and Avis

Hertz and Avis can become a significant concern for Enterprise. These organizations have substantial resources, and they are operating on all the segments Enterprise is present (p. 7). The airport market, local market, and even such new areas as car sharing can become a very competitive environment for Enterprise. To remain competitive, the company in question should change some of its approaches and operations. First, it is important to make sure that customers’ needs are met. For instance, when it comes to the airport market, it is necessary to help the customer save time (p. 8). The family approach is rather inappropriate for the market, where people value their time and focus on their goals.

Zipcar

Zipcar is not a significant threat compared to the competitors mentioned above. This company focuses on one segment (car sharing). To remain competitive, Enterprise should continue developing various innovative products and strategies. For example, the business-to-business initiative can result in increasing sales (p. 10). However, it is essential to take into account the growing competition in this niche as Hertz has entered the market and has already attracted quite a lot of customers. It is critical to come up with services that are highly needed in this area. For example, it is possible to consider using environmentally friendly vehicles to be more attractive to younger generations.

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IvyPanda. (2021, May 11). Car Enterprise's Competitive Advantage and Threats. Retrieved from https://ivypanda.com/essays/car-enterprises-competitive-advantage-and-threats/

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"Car Enterprise's Competitive Advantage and Threats." IvyPanda, 11 May 2021, ivypanda.com/essays/car-enterprises-competitive-advantage-and-threats/.

1. IvyPanda. "Car Enterprise's Competitive Advantage and Threats." May 11, 2021. https://ivypanda.com/essays/car-enterprises-competitive-advantage-and-threats/.


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IvyPanda. "Car Enterprise's Competitive Advantage and Threats." May 11, 2021. https://ivypanda.com/essays/car-enterprises-competitive-advantage-and-threats/.

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IvyPanda. 2021. "Car Enterprise's Competitive Advantage and Threats." May 11, 2021. https://ivypanda.com/essays/car-enterprises-competitive-advantage-and-threats/.

References

IvyPanda. (2021) 'Car Enterprise's Competitive Advantage and Threats'. 11 May.

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