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:

Prospective Customers

Individuals or organizations that are considered potential buyers for a product or service.

Forecast Alternative

Predictive scenarios or models used to estimate future outcomes based on different assumptions or conditions.

Primary Data

Information collected firsthand for a specific research purpose or project, through methods such as surveys, interviews, or experiments.

Secondary Data

Information that has been collected previously by someone else for a different purpose but can be utilized for a new research project or analysis.