Business Strategy

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Overview

We are able to advise on a range of future activities mainly concerned with vehicle ordering, distribution and retailing, when appropriate using a selection of business modelling techniques.  This also embraces the supply chain where this is affected by changing distribution methods.

Although we accept that 'lean' production, lean stocking and lean distribution is good for the balance sheet, we cannot rationalise it's extension to instant response to customer demand for new cars - for instance "The 5-day Car".  If customer demand was even over days, weeks and months ........... then a factory could be planned to operate continuously at close to full volume.  However, life is not like that and seasonal or economic fluctuations in demand mean that factories need high capacity to meet customer demand but are often operating at less than 70% capacity.  Not very lean!  Using 'incentives' to stimulate demand at low volume periods could be the answer, but just how many incentives (incentives = money) do you need to throw at prospective customers to make them buy at such times?

So, we are of the opinion that vehicles need to be made intrinsically aspirational, and that in this case there WILL be a 'waiting time' to delivery, inferring high demand and/or painstaking regard for the highest quality construction.

Which brings us to fleet/business activities.  A prominent and highly respected motor industry executive made a speech (January 2002) to a large assembly of other senior executives, that he would not chase low-margin 'fleet' business just for the sake of maintaining an artificial sales volume - every sale had to be directly profitable.  Now where did we hear that before a few years ago - and what happened to their market share, their reputation and their ownership?

The forthcoming revisions to the European 'Block Exemption' regulations is currently a topic on which we have been able to advise a number of car makers and retail suppliers including parts manufacturers and distributors.  We can advise on both short-term actions and planning for the future demise of the regulation altogether.

Customer Relationship Management

One of the 'hot' topics is to what degree are national sales companies necessary in an age where the very face of communication is shifting day by day, and multi-lingual 'Call Centres' rule the day?  Under these circumstances, using the full power of CRM it could be possible to give the illusion of being much closer to the consumers mind than would otherwise be the case.  While we are not prepared to offer any CRM solutions, we are experienced in measuring performance 'before and after' in customer clinics, exit surveys and in analysis of customer response.


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Last modified: January 10, 2013