{"id":4749,"date":"2015-12-09T15:52:47","date_gmt":"2015-12-09T20:52:47","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/enterprise-holdings-three-brands-in-one\/"},"modified":"2015-12-09T17:25:25","modified_gmt":"2015-12-09T22:25:25","slug":"enterprise-holdings-three-brands-under-one-roof","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/enterprise-holdings-three-brands-under-one-roof\/","title":{"rendered":"Enterprise Holdings \u2013 Three Brands under One Roof!"},"content":{"rendered":"<p><strong>Company Background <\/strong><\/p>\n<p>Enterprise Holdings (\u201cEH\u201d), one of the largest privately held companies in America, owns and operates more than 1.7 million vehicles in over 70 countries worldwide. With annual revenue of $19.4 billion, more than 91,000 employees and over 9,000 airport and neighborhood locations, Enterprise is the largest global car rental service provider by revenue, employees and fleet size.\u00a0<a href=\"#_edn1\" name=\"_ednref1\">[i]<\/a><\/p>\n<p><strong>Business Model<\/strong><\/p>\n<p>Enterprise Holdings offers customers a \u201ctotal transportation\u201d solution primarily through three EH owned car rental brands that serve different customer segments at airports and neighborhood branches:<\/p>\n<ul>\n<li><em>National<\/em>: Premium brand that appeals to business travelers who value convenience, high quality service and loyalty reward programs<\/li>\n<li><em>Enterprise Rent-A-Car<\/em>: Affordable neighborhood-market brand that attracts \u201chome city\u201d renters <a href=\"#_edn2\" name=\"_ednref2\">[ii]<\/a><\/li>\n<li><em>Alamo<\/em>: Affordable brand that targets budget-conscious travelers<\/li>\n<\/ul>\n<p>EH also operates a Car Sales division which allows the company to sell its lightly-used rental fleet directly to consumers and a Fleet Management Business that helps clients acquire, maintain and monitor their commercial vehicles.<\/p>\n<p><strong>Operating Model<\/strong><\/p>\n<p><em>Best-in-Class Back Office Integration <\/em><\/p>\n<p>EH\u2019s commitment to a three brand portfolio allows the company to provide distinct car rental experiences while benefitting from integrated back-office operations. The company accomplishes this by employing a number of innovative tactics:<\/p>\n<ul>\n<li><em>Co-location:<\/em> EH proactively co-locates Enterprise, National and Alamo at airports in order to allow the brands to \u201cshare\u201d cars when demand at one outstrips the others\u00a0<a href=\"#_edn3\" name=\"_ednref3\">[iii]<\/a>\n<ul>\n<li>To facilitate sharing, EH deliberately removes brand identification from its vehicle fleet allowing for seamless vehicle reallocation<\/li>\n<li>The proximity of co-located lots reduces wait times for customers who (unknowingly) are being allocated a vehicle from a different EH brand<\/li>\n<\/ul>\n<\/li>\n<li><em>Fleet Management:<\/em> By proactively sharing its fleet, EH allows managers to balance weekday business traveler demand at National with the influx of vacationer\/leisure customers at Alamo on weekends. This competitive advantage reduces overhead costs and enhances inventory management (this also applies broadly to optimizing maintenance, fuel and IT costs across brands)<\/li>\n<li><em>Leverage at Airports<\/em>: Prior to the acquisition of Vanguard (the parent company of National and Alamo) in 2007, Enterprise struggled to grow its airport footprint and obtain good locations at major hubs. The volume of sales traffic from operating three brands gives EH leverage to negotiate prime locations at airports<\/li>\n<\/ul>\n<p><em>Distribution Network<\/em><\/p>\n<p>Enterprise Rent-A-Car\u2019s leading position in the \u201chome city\u201d rental market and its distribution network of more than 5,500 offices gives EH unrivaled proximity to potential customers (i.e., there is an Enterprise with 15 miles of 90 percent of the U.S. population).\u00a0<a href=\"#_edn4\" name=\"_ednref4\">[iv]<\/a> Controlling this network has allowed Enterprise to develop a supply chain that leverages its fleet size to compete in all aspects of the \u201clocal transportation\u201d ecosystem. Some unique advantages include:<\/p>\n<ul>\n<li><em>Data Driven Insights into Local Markets:<\/em> Enterprise operates a propriety Automated Rental Management System (\u201cARMS\u201d) to streamline communication between collision repair centers, insurers, local Enterprise branches and drivers after an accident. By tracking daily repair cycle times, vehicle status and overall collision shop performance, Enterprise gives its channel partners unique local market data while winning new customers\u00a0<a href=\"#_edn5\" name=\"_ednref5\">[v]<\/a><\/li>\n<li><em>Agile, Local Fleet Inventory Management<\/em>: Enterprise\u2019s local network allows EH to utilize its fleet more efficiently than rivals by providing neighborhood-based services including van pooling, car sharing and hourly rental programs<\/li>\n<\/ul>\n<p><em>Customer Service \u00a0<\/em><\/p>\n<p>Enterprise operates a sophisticated customer satisfaction tool across its three brands. The Enterprise Service Quality Index (\u201cESQi\u201d) allows EH to measure and proactively manage its customer service experience. ESQi\u2019s insights reinforce EH\u2019s commitment to customer service as a core pillar of its business. According to Andrew Taylor, the company\u2019s founder, ESQi shows that \u201ccustomers who were fully satisfied with our [EH\u2019s] service were three times as likely to rent from us [EH] again.\u201d As a result, the company uses ESQi scores as an important component of compensation and promotion for mangers across its brand portfolio.\u00a0<a href=\"#_edn6\" name=\"_ednref6\">[vi]<\/a><\/p>\n<p><strong>Conclusion <\/strong><strong>\u00a0<\/strong><\/p>\n<p>Since EH is a private company its profitability profile and financial statements are not available. Nonetheless, the company has clearly thrived in recent years. EH\u2019s portfolio of brands now accounts for nearly 36 percent of the U.S. airport market versus 28 percent in 2007.<a href=\"#_edn7\" name=\"_ednref7\">[vii]<\/a> Furthermore, 2015 marked the fourth consecutive year that Enterprise, National and Alamo placed in the top three spots of J.D. Power\u2019s North American Rental Car Satisfaction Survey.\u00a0<a href=\"#_edn8\" name=\"_ednref8\">[viii]<\/a> EH\u2019s sustained success can be attributed to its complementary business and operating models that allow management to provide a high level service to customers by leveraging EH\u2019s economy of scale and integrated logistics and back office operations.<\/p>\n<p>&#8212;<\/p>\n<p>For those interested in learning more about Enterprise&#8217;s acquisition\u00a0of Vanguard in 2007, see below:<\/p>\n<p><a href=\"https:\/\/hbr.org\/2014\/01\/how-i-did-it-live-w-andy-taylor\/\">https:\/\/hbr.org\/2014\/01\/how-i-did-it-live-w-andy-taylor\/<\/a><\/p>\n<p><a href=\"#_ednref1\" name=\"_edn1\">[i]<\/a> See company website: https:\/\/www.enterpriseholdings.com\/Default.aspx<\/p>\n<p><a href=\"#_ednref2\" name=\"_edn2\">[ii]<\/a> Home city rentals are best defined as people who need a rental car while their own is being repaired.<\/p>\n<p><a href=\"#_ednref3\" name=\"_edn3\">[iii]<\/a> Andrew C. Taylor. \u201cHow I Did It\u2026Enterprise\u2019s Leader on How Integrating an Acquisition Transformed His Business.\u201d <em>性视界 Business Review<\/em>. Sept 2013: 41-44. Print.<\/p>\n<p><a href=\"#_ednref4\" name=\"_edn4\">[iv]<\/a> https:\/\/www.enterpriseholdings.com\/siteAssets\/Enterprise%20fact%20sheet.pdf<\/p>\n<p><a href=\"#_ednref5\" name=\"_edn5\">[v]<\/a> http:\/\/www.armsautosuite.com<\/p>\n<p><a href=\"#_ednref6\" name=\"_edn6\">[vi]<\/a> See endnote iii<\/p>\n<p><a href=\"#_ednref7\" name=\"_edn7\">[vii]<\/a> https:\/\/www.enterpriseholdings.com\/press-room\/enterprise-holdings-expanding-global-network-neighborhood-services-and-airport-market-share.html<\/p>\n<p><a href=\"#_ednref8\" name=\"_edn8\">[viii]<\/a> https:\/\/www.enterpriseholdings.com\/press-room\/enterprise-rent-a-car-ranks-highest-in-jd-power-2015-rental-car-satisfaction-study.html<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Enterprise Holdings offers car renters three distinct brands while maximizing the benefits of economies of scale as the largest car rental company in the world <\/p>\n","protected":false},"author":424,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","categories":[810,581,809,811,578],"class_list":["post-4749","hck-submission","type-hck-submission","status-publish","hentry","category-car-rentals","category-co-location","category-enterprise-holdings","category-fleet-management","category-tom-winner"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Enterprise Holdings \u2013 Three Brands under One Roof! - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/enterprise-holdings-three-brands-under-one-roof\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Enterprise Holdings \u2013 Three Brands under One Roof! - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Enterprise Holdings offers car renters three distinct brands while maximizing the benefits of economies of scale as the largest car rental company in the world\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/enterprise-holdings-three-brands-under-one-roof\/\" \/>\n<meta property=\"og:site_name\" content=\"Technology and Operations Management\" \/>\n<meta property=\"article:modified_time\" content=\"2015-12-09T22:25:25+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/enterprise-holdings-three-brands-under-one-roof\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/enterprise-holdings-three-brands-under-one-roof\\\/\",\"name\":\"Enterprise Holdings \u2013 Three Brands under One Roof! - Technology and Operations Management\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\"},\"datePublished\":\"2015-12-09T20:52:47+00:00\",\"dateModified\":\"2015-12-09T22:25:25+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/enterprise-holdings-three-brands-under-one-roof\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/enterprise-holdings-three-brands-under-one-roof\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/enterprise-holdings-three-brands-under-one-roof\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Submissions\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Enterprise Holdings \u2013 Three Brands under One Roof!\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/#website\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/\",\"name\":\"Technology and Operations Management\",\"description\":\"MBA Student Perspectives\",\"potentialAction\":[{\"@type\":\"性视界Action\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Enterprise Holdings \u2013 Three Brands under One Roof! - Technology and Operations Management","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/enterprise-holdings-three-brands-under-one-roof\/","og_locale":"en_US","og_type":"article","og_title":"Enterprise Holdings \u2013 Three Brands under One Roof! - Technology and Operations Management","og_description":"Enterprise Holdings offers car renters three distinct brands while maximizing the benefits of economies of scale as the largest car rental company in the world","og_url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/enterprise-holdings-three-brands-under-one-roof\/","og_site_name":"Technology and Operations Management","article_modified_time":"2015-12-09T22:25:25+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/enterprise-holdings-three-brands-under-one-roof\/","url":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/enterprise-holdings-three-brands-under-one-roof\/","name":"Enterprise Holdings \u2013 Three Brands under One Roof! - Technology and Operations Management","isPartOf":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website"},"datePublished":"2015-12-09T20:52:47+00:00","dateModified":"2015-12-09T22:25:25+00:00","breadcrumb":{"@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/enterprise-holdings-three-brands-under-one-roof\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/d3.harvard.edu\/platform-rctom\/submission\/enterprise-holdings-three-brands-under-one-roof\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/enterprise-holdings-three-brands-under-one-roof\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/d3.harvard.edu\/platform-rctom\/"},{"@type":"ListItem","position":2,"name":"Submissions","item":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/"},{"@type":"ListItem","position":3,"name":"Enterprise Holdings \u2013 Three Brands under One Roof!"}]},{"@type":"WebSite","@id":"https:\/\/d3.harvard.edu\/platform-rctom\/#website","url":"https:\/\/d3.harvard.edu\/platform-rctom\/","name":"Technology and Operations Management","description":"MBA Student Perspectives","potentialAction":[{"@type":"性视界Action","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/d3.harvard.edu\/platform-rctom\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/4749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission"}],"about":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/types\/hck-submission"}],"author":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/users\/424"}],"replies":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/comments?post=4749"}],"version-history":[{"count":0,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/hck-submission\/4749\/revisions"}],"wp:attachment":[{"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/media?parent=4749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-rctom\/wp-json\/wp\/v2\/categories?post=4749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}