Executive summary
Cars Dealership globally and locally has established strong completive industry where the market trends are dynamic. Seeking to gain a market share on the highly competitive market requires more strategic approach based on a detailed analysis on internal and external markets. Current dynamism in the market, as attributed to various factors offers opportunities and threats. Examining and exploring the market and the industry situation is aimed at offering essential strategies towards venturing in the trade. AAM Car Dealers Company is a newly formed company that seeks to venture in Car Dealership within the local market but with a dream of dominating the global market. The preceding business plan incorporates various essential aspects and entities through exhaustive analysis on the external and internal factors within the market. The plan incorporates estimates based on projections on performance, operations and establishment hence positioning AAM Car Dealers Company on a competitive advantage within the industry. The plan avails the various strategies and approaches to be executed to achieve the stated company goal.
Introduction
As AAM Car Dealers Company seeks to enter car dealership industry, it is essential to have facts over the current market and industry trends. According to reports non car dealership globally it is evident that the market seems to grow based on the increasing sales and consumer confidence on trend. The report indicates an increase on new light-vehicle sale in 2011 to 12.7 million units compared to 11.55 million in 2010 with estimates on 10% in 2012 offered. The survey on various leading companies on car dealership indicates that; typical dealership saw sales increasing in every department for the entire year (2011) with new-vehicles sales and costs moderated relative to new-vehicle sales volume. 1.7% in 2011 was the moderate growth in GDP with consumer confidence of the industry marginally growing in 2011 to the early 2012. Japan’s tsunami and flooding in Thailand are tragedies which contributed for the shortage of new light vehicles from overseas.
Vehicle sales in 2011 witnessed a continuous increase, propelled and attributed by the growing need to replace a record-aged group of vehicles in services. Early 2012 on the first quarter a unique feature of the market was witnessed through less-generous incentives including cash rebates, value pricing and subverted rate financing.
Description of a service or product
AAM Car Dealers Company aims at offering unique products and services to the customers within the local market. Equipped with innovative technology mechanisms aimed at offering world class services to the customers, AAM Car Dealers Company aims at integrating consumer needs by analysing their purchasing behavior. The company seeks to bridge the gap between the manufacturers and the consumers through availing specific segments of the consumers with essential information on specific types of cars that suits their specific behaviors. The services availed by the company will include; disseminating detailed information on the company, products and personalized services offered, providing reliable and valid information about our products, offering competitive prices through deploying a competitive pricing strategy that addresses the consumer income and purchasing behavior plus the industry and market behavior.
Differences from the existing offerings in marketplace (unique advantage)
Target audience (market segments)
Segmenting the market and having unique and specific audience is one of the strategic approaches that the company seeks to explore and indulge in. The company has identified particular segments of the consumers; basically the middle and low income earners who have endless urge to own simple but unique less costly cars with low maintenance costs. Such cars are available in the manufacturer dens but due to the lack of personalized bond between the dealers and their consumers such need has not been satisfied hence AAM Car Dealers Company is seeking to step in and bridge the gap. Targeting these consumers who may not be able to make instant cash deposits on sales through involving their employers in a plan to aid them, cater for specific installments can offer a competitive advantage while catering for our consumer needs, offers a unique opportunity for growth by the company.
SWOT analysis
Under this analysis the various strategic approaches needed towards creating a clear insight on the strengths, weaknesses, opportunities and the threats availed by both external and internal factors are examined.
Strengths
The company seeks to adopt some of the most competitive approaches towards creating a competitive advantage this includes; developing and embracing an effective Human Resource Management strategy to our employees, locating the company in the strategic location near the target market is essential towards catering for the consumer need, offering effective and efficient delivery services to our consumers and developing organizational structure which incorporates all the stakeholders entities within the organization. Creating a good regulation through developing missions and visions and acting towards the values is essential towards development and performance of the entire organization, offers a unique entity as the company seeks to venture in the industry. Effective corporate social responsibility catering not only for the society but every stakeholder under which the company operates is failure that other dealer poses hence the need for the company to create an effective corporate social responsibility.
Weaknesses
Under this entity, various limiting factors towards achieving the organizational goals are addressed in relation to the industry and internal aspects. Some of these limiting factors include; locating the organization within the desired strategic area can be limited by the increasing environmental awareness, increased competition by both existing and dominating companies plus new entrants. The fact that the company seeks to cater for the middle and low income earners, inflation among other economic factors can hinder the company growth. Furthermore the strategy on involving our consumers, employers on monthly installments compared to other competitors who embrace cash purchase may pose a weakness based on industry dynamism and establishing an effective pricing strategy. The wrangles between employers and our customers leading to unforeseen occurrences pose a weakness on creating a good reputation on the company services. Developing contingency plans aimed at addressing some of the stated facts is essential towards minimizing the impacts.
Opportunities
There are various opportunities availed by the organization within both the external and internal environments. Some of the opportunities that the external environments avails the company includes; wide market on the targeted audience, availability of products catering for the targeted audiences by indulging into strategic approaches by the manufactures on low cost, simple but unique and low maintenance cost cars, developing innovative approaches under which the consumers or the students can make orders and opt for the delivery times, ability to use the various effective and efficient ways to embrace the consumers needs, offering quality services to build a good reputation and strategizing on more strategic approaches towards increasing consumer satisfaction. The current dynamism in technology and innovations if effectively adopted provides marginal benefits towards offering effective and efficient services to the consumers. Streamlining the supply chain, reducing operation costs hence availing the consumers with competitive prices and embracing innovative sales and marketing strategies such as web, online sales among other marketing competitive strategies are other opportunities within the industry which if strategically explored avails unique advantage within the market.
Threats
Under this analysis the various challenges on both external and internal environments are examined. Some of the threats that pose on both internal and external environments include; the technological developments if not effectively tapped offers threats towards minimizing consumer satisfaction, the various legal policies regulating the industry on distribution and handling creates an undeterminable environment that may limit the effectiveness of the organization. Competition by other similar organizations or companies seeking to offer the similar services to the consumers on service delivery pose a threat towards developing and increasing organizational performance. Competition from existing and dominating companies plus new entrants seeking to offer the similar services to the consumers while offering the same products pose a threat to the company. Conversely, offering unique services to the consumers through developing strategic approaches differing from those of the competitors offers a promising entity in regard to minimizing such threats. The market and industry trends are also some of the threats that the company experiences. To minimize these threats the company seeks to embrace a six model infrastructure of; quality service delivery, servicescape, product quality, value to the customers, technology applications and convenience.
Cost Projections and Estimates
Land, labor, capital, entrepreneurial ability are essential entities in exploring the respective approaches towards increasing stability and performance for the company. Financial estimates and projections on land, labor and capital are essential entities encompassed by accountability by every stakeholder within the company’s stability and growth. Land defining the suitable location where the company as it seeks to establish competitive aspects. Leasing properties and purchasing a new location are some of the options available to the organization. The land can only be estimated and the respective costs allocated by defining the respective option that the company seeks to embrace. The strategic location based on the market and consumer’s convenience plus the stakeholders’ perspectives are some of the consideration in setting the cost. Analyzing the market and industry analysis of the specific location that the company seeks to establish the plant are also essential factors to consider.
The company seeks to hire a minimum of thirty highly qualified human resources. The number is inclusive of various respective posts within the company management to normal operations. The number may be increased based on the performance and growth of the company in the subsequent years. The initial capital estimated to initiate the company is based on the land and labor costs within the specific locations selected to establish the costs of the respective entities. In regard to the stated notion on cost, the normal estimates on middle-sized companies. Based on the complexity of car dealership business, AAM Car Dealers Company seeks to integrate the financial aspects based on the stakeholders and the industry and market analysis. The actual capital estimates should be based on consideration onto the stakeholders based on land and labor to be acquired.
Conclusion
AAM Car Dealers Company through a strategic approach on the industry and market situation is palpable of acquiring substantial shares within the industry. Though competition is marginal with other threats possible, offering unique and consumer based services avails a competitive advantage within the industry to propel the company towards dominating the industry. The company’s decision to attract and segment the markets by targeting specific audiences within the market avails the company with a competitive advantage. The SWOT analysis examining the internal and external factors within the respective industry offers a detailed analysis towards establishing the approaches aimed at positioning the company to a competitive advantage. The company seeks to hire a minimum of thirty highly qualified human resources through a recruitment and selection process on a transparent entity. AAM Car Dealers Company has the potential to not only witness growth leading to dominance but also changing and transforming Car dealership to another level through embracing the various approaches availed within the plan.
