The Enterprise Rent A Car Erac

The Enterprise Rent-A-Car provides augmented services to its customers by maintaining a unique selling proposition in the industry of rental automobile. It mainly focuses on the personal services and it is the USP of ERAC, this USP has been implemented in almost each facet of its business operations.

The service concept of ERAC includes customer satisfaction as it’s first and foremost objective and priority and secondly it focuses on the employees of the organization and their benefits. The organization believes that customer and employees are the two major key forces responsible for the objective accomplishment, service rendering and success. Enterprise Rent-A-Car (ERAC) defined its service differently than that of the typical national car rental company by providing wonderful rental package which was iconize by its now-famous wrapped car. Its services aim at providing various benefits to its customers, the key highlights of its services are as follows:

It provides amazing convenience facilities in the form of nearby locations, and with the conveyance facilities to customers at their homes, repair shops, offices without any charges.

It provides services at most reasonable and affordable rates to its customers as a part of its operational strategy.

It provides exceptional rented vehicles on various occasions.

It mainly focuses on local rental segment.

It provides excellent training facilities to its employees in order to treat and satisfy customers effectively.

The ethical work environment at ERAC results in job satisfaction and service quality of employees and the organization respectively.

Question: 2

Answer: 2

The main focuses on the customer and employee satisfaction are the two key factors which lead to success of the ERAC and having a competitive advantage over other national rental car companies. The features of its business concept allow ERAC to compete effectively with the existing national rental car companies are as follows:

Providing augmented services at reasonable rates.

Sharp focus on the hometown market for exploring marketing opportunities.

It includes Fleet Management Operations along with the leasing of motor vehicles in its business operations which ultimately helps the customer in outsourcing their complete vehicle departments.

It provides a strong dedicated account services through representatives who manages all the fleets pertaining to customers including acquisition, registration, insurance services, financing, after market equipment, fuel management, corporate rental programs, reporting, full maintenance management and disposal etc. These services help in building competitive advantage against the firms like Avis, Hertz, Budget, Alamo and National.

The focus on local car rental gives 10 to 15 percent growth rate to ERAC while its competitors focus on airport market achieve 3 to 5 percent only.

Effective implementation of sound HR practices pertaining to recruitment, selection, training and development helps in creating value added services to its customer, which leads to customer satisfaction and enhancing organizational profitability and growth.

Providing services to customers at facility layout location along with free conveyance facility leads to compete effectively with the existing national rental car companies .

The focus on athletes poses great impact on the culture of ERAC as it promotes a competitive environment which encourages employees towards teamwork and develops team spirit. This helps in beating competitors.

Question: 3

Answer: 3

The importance of service profit chain can hardly be overemphasized in the success of any service organization. It plays a very prominent role in the effective rendering of services and achieves the ultimate objective of customer satisfaction and profit maximization.

The explanation of service profit chain and its role in the success of ERAC is as follows:

The service profit chain intends a strong relationship between the customer loyalty, profitability and service value to employee satisfaction, capability and productivity. It provides augmented services to the customers, which leads to customer loyalty, and customer loyalty helps in enhancing the profitability and revenue growth. On the contrary the satisfied, capable, committed and productive employees help in creating valuable services. The service profit chain provides benefits in the following manner:

Internal Quality of ERAC leads to satisfaction of Employees: Internal service quality is the environment in which employees perform their tasks, and organizational operations like recruitment, selection, training and development, rewards and recognition of employees, workplace technology etc. takes place. ERAC focuses mainly on the effective implementation of the aforementioned HR practices and thus have a satisfied workforce.

Satisfaction of Employees leads to Employee Retention and Productivity: As ERAC has a highly satisfied workforce, it is ultimately helpful in the retention of employees and also in the enhancement of production and productivity. Retention of good employees also helps in customer satisfaction.

Employee Retention and Productivity make Service Value: ERAC’s well trained workforce is capable of fulfilling the expectations of customers which creates value as per their requirement.

Service Values drive Customer Satisfaction: The customer value of ERAC can be measured by its outstanding profit results against the total costs of rendering services. The immediate and qualitative service offerings to the customers help in satisfaction of customers.

Customer Satisfaction drives customer Loyalty: The highly satisfied customers of ERAC provides customer loyalty to it.

Customer Loyalty drives Profitability and Growth: The outstanding profits and growth in revenue generation of ERAC is only possible through customer loyalty.