Dear Readers according to study most prominent examples of diversification strategy is General Electric. Originally, the company was focused on electrical goods. However, over the years they have acquired and created operations in the aeronautic, rail, power plant, gas and kitchen appliances industries.
Three types of diversification techniques:
Concentric diversification. Concentric diversification involves adding similar products or services to the existing business.
Possible RecessionImpact on Auto Industry
With an economic recession now a days, many auto industry workers are wondering how the industry will be impacted in the coming months. With ongoing supply chain issues, interest rates at an all-time high in over a decade, and inflation climbing at an unprecedented rate, it’s no wonder why people are worried about how the auto industry will be impacted in 2023.
Recession May Have Limited Effect on Used Motor Bikes & Cars Market
It’s unlikely that the recession may have much of an effect on the used car market. Business Car recently shared that, past recessions have not caused used car prices to fall substantially.
The reason behind is buyers, who are already having budgets or in some-way may be switching to a smaller fuel efficient economical model due to increasing fuel prices & possible recession or switch from new to used car purchases which increases demand as a result. Used cars aren’t likely to fall much because of the higher MSRP of new cars.
This, combined with additional inventory, should make for a better year for auto dealers – they should be able to fill their lots with less difficult without having to lower their prices by much.
Used Cars prices unlikely to come down
Many auto experts opinions are divided regarding when and how significantly used car prices will fall, the majority seem to believe that some sort of price decrease is very unlikely. To reiterate what was stated, used car prices are not likely to fall then their current prices. While used car prices are still more appealing to middle-class consumers than new vehicles.
Car dealerships have no reason to cut their prices any more than they already have as the demand continues to remain high.
The recession will have some effects on the industry, it may be less significant than others have anticipated. Overall, the economy isn’t in the best shape, but we can hope that businesses– both big and small– can sustain, and manage to come out.
Software base process monitoring helps in many ways
If one happens to operate an auto business, whether it is an auto dealership, auto transport brokerage or in car hauling business, one might be experiencing a bit of hardship. If that’s the case, then one needs to cut costs wherever possible – to do that, one should have reliable software that can help save time and money.
Is Auto industry recession proof!
According to experts used car market is ‘recession proof’ as buyers turn to finance to pay for vehicles. Leading industry expert has described the used car market as ‘recession proof’ as prices remain high with less production despite economic struggles elsewhere.
Prices of M. Bikes & Cars both new and old have skyrocketed, as less production by local assemblers due to government restrictions large number of dealers struggle to keep stock on their lots.
Some common challenges dealerships face today.
Less Dealer Loyalty.
High New and Pre-Owned Prices.
Used Car Pricing and Aging.
Difficulty Securing Inventory.
External Economic Factors.
Promotion of auto parts business.
To grow your business, you need to identify prospects that need the type of products and quality of service you are offering and communicate the benefits clearly.
Stand Out from Competitors.
Look for Prospects.
Make it Easy.
Be Flexible and Convenient.
Cater to Large Customers.
Promote Your Business.
Market your dealership to increase sales
Website design that puts users first.
Optimize your website for mobile visitors.
Expand your online presence.
Drive organic search through SEO.
Target car shoppers with paid ads.
Manage customer reviews.
Develop a multi-channel marketing strategy.
Make dealership more profitable by increasing business
Few ways that dealerships today can give process efficiency a profitable boost:
Promote Prepaid Maintenance Plans.
Consider Non-Commissioned Auto Sales.
Adopt a One-Price Sales Model.
Ensure Single-Point-of-Contact (SPOC) Auto Sales.
Optimize the Online-to-in-Store Process for Customers.
Promote Dealership on social media
Some Example Social Media Post Ideas for Car Dealerships
Introduce Your Team. Many people dread going to car dealerships because they don’t want to deal with pushy, intimidating salespeople.
Share Blog Posts.
Showcase Your Inventory.
Explain Confusing Terminology.
Advertise Discounts and Deals.
Promote Other Small Businesses.
KPI in a dealership
Measuring ones Key Performance Indicators (KPIs) is important in running an effective and profitable dealership. These indicators will help one in better understanding how well dealership is doing as a whole, what areas need improvement, and how efficient each of your departments are.
5 Important Key Performance Indicators for any dealership
Revenue per client.
Client retention rate.
Many dealerships aftersales department brings in more revenue than sales. Beyond simple stuff like oil changes and changing filters, one have to look at the hourly service rate at theirdealership.
That is why dealers like to push little things that cabin filter change, fuel system injector cleaning, transmission flush, etc. In some cases the hourly labor for the service ways exceeds the cost of the actual part needed.
Exclusive article written by Aqeel Bashir and published in Automark Magazine – February2023 printed edition