In what way was Enterprise Rent-A-Car’s history as a niche company lik

QUESTION

In what way was Enterprise Rent-A-Car’s history as a niche company likely to have been a disadvantage as it sought to become an industry leader?

A) It had less brand awareness than an entirely new company would have had.
B) It lacked experience developing profitable customer relationships.
C) It had to overcome its reputation as a “neighborhood” rental agency.
D) It needed to end relationships with its existing customers.
E) It needed to compete solely on price.

ANSWER

Answer: C
Explanation: C) Enterprise started out as a “neighborhood” company, and that might have helped at first, but a large part of the market probably wants a global company. So for them, Enterprise had to overcome the reputation that it spent years developing, as Choice C indicates. Choices A and B were less of a problem for Enterprise than they would be for new companies. Choices D and E are too extreme to be correct.