Send the link below via email or IMCopy
Present to your audienceStart remote presentation
- Invited audience members will follow you as you navigate and present
- People invited to a presentation do not need a Prezi account
- This link expires 10 minutes after you close the presentation
- A maximum of 30 users can follow your presentation
- Learn more about this feature in our knowledge base article
Do you really want to delete this prezi?
Neither you, nor the coeditors you shared it with will be able to recover it again.
Make your likes visible on Facebook?
Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.
Olympic Rent a Car
Transcript of Olympic Rent a Car
Own a large market share
Dominated by major brands
Have to pay concession fees as well as fixed fees
Early mornings and late night collections
Local offices including car dealerships and repair shops
More likely to rent a compact car than any other vehicle class
Likely to earn points during business trips and spend in leisure locations
In 2002 there were nine national car rental companies
By 2012 there were just four major national car rental companies
High levels of competition
High entry barriers
A service based industry
In 2009 total market revenue for the rental car business industry fell 6.5% from 2008
Revenue was up by 2.5% in 2010
In 2011-2012 the growth rate went up to 2-3% per year
Customer Loyalty Battles
Founded by John Uelses in 1976
Lower prices than Hertz
In 1987 John sold the business
Operations were conducted primarily at major airports and at downtown locations in major cities
Car rental business
Struggling to compete with competitors
Do not hold a large market share
Customers are not loyal to their business
The recent implementation of a new customer loyalty program by Enterprise Car Rentals
No blackout days (days where demand may exceed supply such as public holidays)
The Enterprise rewards program works off the basis that dollars equal points, then you add in bonuses and points accelerators
The slow-growing market for business car rentals
Increase in web-based conferencing
Market has reached maturity with potential for decline
Adapt to the current and future trends of business users
Accommodate leisure customers
Focus on adopting a low-cost position
Reduce overheads and financial risk
Potential loss of loyal Medallist Program customers
Rapid increase in web-based conferencing
Adopting similar strategy to competitors may reduce differentiation
Solution 1: Revise the customer loyalty program to reflect Enterprise's model
Offer free rental days on any car with no blackouts
Reward customers based on dollars spend, as opposed to days rented
Continued modification based on industry trends
Enticing repeat customers
Shifting of value proposition
Member rewards are based on their overall number of rentals
New rewards are earned as the number of rentals increase
Differentiation of rewards
Encourage customer loyalty
Establishment of strategic partnerships
Cost of rewards
Solution 2: Offer a tiered reward-based program
Solution 3: Scrap the loyalty program; offer a no gimmick, low price guarantee
Incorporation of price matching to ensure lowest industry prices
Maintain current value proposition
Reduction of overhead costs
Creation of a niche within the industry
Allocation of advertising funds to promote the new program
Scope for income generations
Current lack of market share; no short-term competitive response
Disapproval from current Medallist rewards members
Low price guarantee
Reduce overhead cost
High scope for income generation
1. Loyalty programs are a mainstay in the car rental industry. Do you believe an organisation could compete based on offering a low price guarantee alone?
2. Which of the three strategies do you believe would best solve Olympic Rent-A-Car's current problem?
a) Revise their loyalty program to be similar to Enterprise
b)Offer a tiered based program
c)Offer a no gimmick, low price guarantee
3.Olympic Rent-A-Car's business market is in its maturity stage. Should they focus on customer retention in this segment, or adopt new strategies to grow their market share?
4. Enterprise holds a much higher market share than Olympic Rent-A-Car. Could they compete by adopting a similar strategy?
Deighton, J Kindley, J. (2013). Olympic Rent-A-Car.: Customer Loyalty Battles. Harvard Business School.
Inkling. 2014. Inkling. <https://www.inkling.com/read/contemporary-strategy-analysis-grant-7th/chapter-13/strategies-for-declining> [Accessed 01 October 2014].