Mini-Case 5-1: Finding a Competitive Advantage

question 113

Essay

Mini-Case 5-1: Finding a Competitive Advantage
Copreneurs Ed and Yolanda recently opened a vintage used car lot called Cherry Lane. They sell antique and collectible cars on consignment for the owners at a fee of 30 percent of the selling price. The price is further reduced by 10 percent if a particular car is not sold within the first 30 days. One of the first customers convinced Yolanda that this was the only fair thing to do, and in an effort to provide something for "the cost conscious buyer," she provided what she thought was excellent customer service and implemented the idea.
Ed and Yolanda feel Cherry Lane has an ideal location. It is located adjacent to the city's baseball stadium, alongside the freeway in the center of all the other car dealerships. Although Cherry Lane has significant foot traffic, most people never make offers to buy.
In an effort to increase sales, Ed and Yolanda are working on a new marketing strategy that they believe should be quite different from the "shotgun" approach they had been using over the last few months.
-As Ed and Yolanda begin the strategic planning process, what steps should they take?

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Definitions:

Discrimination Threat

The perceived risk of being judged or treated unfairly based on one's group identity.

Stigmas

entail societal labels that identify and devalue individuals or groups based on certain characteristics or behaviors, leading to discrimination and exclusion.

Persistent

Exhibiting a steadfast and determined continuation of actions despite difficulties, obstacles, or discouragement.

Stigmatised Outgroups

Groups that are socially devalued and discriminated against based on negative stereotypes or attributes.