In every business there is competition.
Every organisation has to face competitors within the market and
beat them to stay at the top place. Every company wants to go higher than other companies. But not
everyone can do that in the market. Because there is a high necessity of strategy and management to
achieve that top place. So, every organisation has to set a strategic plan to beat other competitors in the
market. Development which would be sustainable for a company is very essential to stay in the industry
and become the market leader. Enterprise Rent-a-car needs to analyse the market properly and
implement the strategy to make themselves different from the competitors. Porter’s five forces model a
great tool for market analysis.
Porter’s five forces model:
Threat of new entrants: In every industry, there will be new entrants in the market and existing
companies need to compete with them. It is very natural. Porter’s five forces model will help the
Enterprise Rent-a-car to analyse the market and identify the new entrants in the market and
aware of them and their strategies.
Threat of substitution: People always search for better substitution either in the way of quality
or price. If they find anything better than the existing products of Enterprise Rent-a-car, they will
switch to those products without thinking a second time. So, Enterprise Rent-a-car has to be
much aware about competitors products and services and make and give a better solution to
the customer than the competitors.
Bargaining power of buyers: Buyers have strong power about bargaining. They always wants to
win over the company. Enterprise Rent-a-car needs to be very careful about this. Because
customer is always right. The company has to design their products and services with a view to
customer choice.
Bargaining power of suppliers: Organisations may need to contact with suppliers for raw
materials or other services for creating products or services. Suppliers are much aware of their
supplies and want to win over the dealer. But companies like Enterprise Rent-a-car need to
bargain with them and settled the deal in a win-win situation. This is a strategic way of being
market leader. Because the ultimate cost of the product or service will be low and customers
will be satisfied.
Ansoff Matrix:
The Ansoff Matrix is a marketing tools to analyse the market and developing different strategies to
capture the market.
Market penetration: An organisation can use this strategy to achieve more market share and capture
more customers through different strategies applying on existing products or services in the market like
discount, price cutting, combos, buy one get one strategy etc.
Product development: People always like something new like new products and services. A company
needs to do proper research and development for developing and creating new products and services
which can attract more customers.
Company diversification: Sometimes a company needs to make diversification of their service or
product. Though it is very tough job but through proper research and marketing a company can develop
a diversified product or service for customer.
Market development: A company can develop the market by proper marketing plans and execution.
Every company needs to develop their market for existing products and services to grow the business.
From above discussed topics of Ansoff Matrix, product development might be the best strategy to
expand more in the market. Because the company has the global service and different geography has
different types of product. The company needs to develop vari9of products for different market around
the world.
P4
Like every company, Enterprise Rent-a-car also needs to develop SMART objectives for market
competition. A SMART objective plan is discussed below for Enterprise Rent-a-car.
Strategic objectives:
The company has to develop different types of product for different regions to satisfy the
customer needs in different locations. Because all the customers are mot same in financial and
social perspective. So, the company needs to develop different product segment for different
customer.
The company should develop different marketing strategies for different locations. Same
advertisement or promotions might not attract the target customer. So, before planning any
marketing campaign, the company must keep in mind the demography and segmentation of the
customer.
Improvement in product or service will be another strategy to capture the market share for
Enterprise Rent-a-car. Better service will gather more customer. So the company has to develop
their products and services in a great way which can satisfy customer.
More volume in sales will be another strategy for market share. More sales means more profit
in margin.
The rationale for using SMART strategic objectives:
This SMART strategic objectives can help to achieve inform strategy mentioned in above. If the company
develop varieties of products for different locations based on the income, expense, lifestyle of the
people, the company can easily set a reasonable price for the product and it can boost up the sales of
the product or service. Different marketing strategies for different places can attract different types of
people. Development in product or service is a continuous process for a company, otherwise the
product or service will not stay long in the market. Because people always look for new and upgrade
products and services. Increasing sales volume will helps to make more profit for the company.
