Essay about Used Car Analysisi

Submitted By sldanner1
Words: 4836
Pages: 20

Used Car Dealership Industry Channel Analysis

Prepared By: Sarah Hangsleben Caitlin Case Shannon Danner

Table of Contents:

Executive Summary Industry Analysis Category and Competitor Definition Industry Attractiveness Sales Analysis Customer Analysis Distribution Channel Structure Level Flow Intensity Evaluation of Channel Structure Economic, and Technological Efficiency, Control, and Flexibility Sellers, Dealers, and Buyers Identification of Channel Problems Alternative Channel Designs Option 1 Option 2 Recommendations Works Cited



The used car dealership industry is very unique and always changing.

Trends in technology, the Internet, alternative fuels, and the economy all affect the climate of the used car dealership industry.

This industry is a subset of a broader transportation category. Competitors

range from public transportation to different types of dealerships both new and used. Specifically the used car dealership industry can be divided into two types-­‐ franchise dealers and independent dealers.

Sales over the last three years have been on the rise. Peak season for used

car dealerships is February through August. The main customer divisions of used cars are the retired, the singles, the college students, and families. These are main consumers for used cars because most are on limited budgets but require a reliable form of transportation. This eliminates competition from new cars and public transportation.

There are three levels in the channel structure of used car dealerships. The

first level is the suppliers that include online, other dealers, trade-­‐ins, auctions, and corporate sponsored auctions. The second level is the dealers themselves, both franchise and independent. There are also casual sales between consumers that do not involve dealers at all. Finally the buyers are the end consumers, and they include individuals, businesses, and auctions.

The used car dealership will need to put customers in mind and utilize the

Internet in order to stay competitive with all forms of competition in the transportation industry.