Automobilia - Luxury Cars

Automobilia - Luxury Cars

Get 250 Hilton HHonors bonus points

Automobilia - Luxury Cars
Our company, Automobilia Inc., an internet based company is engaged in providing purchasing services to customers looking for luxury cars. Our business model is to provide brokerage services between the customer and car dealerships and our value proposition is to aid, simplify and enhance customers experience in purchasing new cars.

Our services include finding reliable dealerships to provide luxury cars to customers in an affordable and timely manner, planning and managing the buying process, quality assurance, by utilizing only reliable dealers and focusing mainly on brands with established reputation, we will also provide customers with help to have insurance clearance as well as shipping as well as post purchase services. As we already mentioned our value proposition is to create value by providing users with luxury cars by guarantying affordable prices, flexibility and efficiency in the purchasing process.

Automobilia Inc. targets at sourcing luxury cars from, different dealerships and facilitating and bridging dealership and end users. The increasing demand for luxury cars, and the unavailability of the product in a timely manner to customers, are the reason that propelled us to start our business. We try to find dealership who offer luxury cars at affordable prices with quality assurance and reliability in delivery. Our company will leverage our existing network with dealerships and enhance our services to consumer using the internet which is a trend of the future.

Automobilia Inc. Services

Our services enable us to build a bridge for luxury cars customers and dealers in an environment where culture, languages and political differences makes it difficult for either counterpart to conduct business autonomously. Our services eliminate those barriers or reduce those barriers for the buyers. Our services solve the major problems that customers have faced in buying quality cars, clearance services and timely delivery.
In this regard, we are going to act on behalf of consumers ourselves to make sure the quality standards of the products are met and the logistics are operated smoothly. Additionally, Comparing to assuring our services and creating a reliable brand we will be in a direct and constant contact with dealers to supervise the various aspects of the product, update availability and in the end provide providing cost savings and lack of headache to our customers.

INDUSTRY ANALYSIS

Automotive Industry in general

The automotive industry is approximately a $333 billion industry. It is dominated by several
major groups after a series of mergers and acquisitions in the past 20 years.

Overall the automotive industry is very competitive and it is safe to say that it is currently facing a crisis. The reasons can be tracked down to excessive supply (and moderate demand), high gas prices and other environmental issues that have caused a shift in consumer behavior.

Automotive Industry in the US (market segment point of view)

There are quite a few major trends in the US market over the past 10 years:

•The U.S. light vehicle market has grown at a 1.6% compound annual growth rate over the past 35 years
•In recent years sales volumes have become more stable as OEMs adjusted pricing to influence demand and leasing increased.
•Passenger cars sales have not grown over the past 35 years, and have declined in recent years.
•Since 1992, light truck sales, which include pick-up trucks, minivans and sport utility vehicles, have grown over 9 percent annually, surpassing car sales in 2002

U.S. Passenger Car Sales

•In the stagnant passenger car market, the “mid-range” segment (Camry, Chrysler 300, Malibu) comprises over half of all sales
•“Traditional” (i.e., large) cars continue to decline in sales
•“Upscale”(i.e., luxury) has grown from 12% to 15% in five years
•SUVs have declined dramatically from their peak in 2002/2003
•“Sport wagons” (i.e., crossovers) have grown to 18 percent of the market.
•Hybrid electric or clean diesel vehicles are expected to comprise 11% of the U.S. market by 2012, compared to 4.5% in 2005.

Automotive Industry in the US (manufacturer point of view)

•The traditional US Big 3 (GM, Ford and Chrysler) have seen their share of market steadily decline
•Toyota, Nissan, Honda and Hyundai/Kia have been steadily growing US market share as they have introduced new light truck products
•European sales have remained relatively stable since 1999.

Dealerships selection: Quality and availability

Automobilia Inc Inc. has as its main goal to find the cars that our customers want in an easy and timely manner. Also we want to find those cars that meet the exact specifications and standards of our consumers. Our research has shown that sometimes due to the cost involved with the luxury cars and the limited supply of it, our customers may find the buying process tedious and since sometimes they have to go to a long process just to get their dream cars. Our constant interaction with the dealers allows us to know in real time what they have in inventory, thus when a customer wants a car, we know when and where we can find it. We selected only those dealers that have a reputations for reliability in products and services, thus by using the strength of their brands we can also create a good brand image for ourselves. Geographical location also serves as a matrix to select dealers since we want to cover all the areas in which we have customers thus minimizing time, efforts and assuring that we meet and exceed customers expectations.

Our mission statement is “We want to be the leading online luxury car provider in the world”. Automobilia Inc – is a start up business among myriad of competitors who provide similar services and who also competes with brick and mortar car providers; however we believe that within the industry there is a gap in services which we can target and offer a broad range of products and services to customers. Our positioning and expertise in the luxury cars and our presence online which is the direction pattern that buying decisions are being made will allow us to be successful in this competitive market.

Competitive Position

our strategy is simple: continuously strengthen our brand and products, provide needed services and making the buying process of luxury car enjoyable. We are not involved in the design and manufacturing of the product, we rely on the knowledgeable users to find the product and we tap into the already existing product and services by providing added value in the purchasing process. Providing the luxury cars to our customers in a timely manner is critical to our success.

The SWOT analysis, we can the strength and barriers conduction an online business poses; however we see online business as the wave of the future given the fact that our target market is looking for simplicity in the buying process. We pride ourselves in proving products, information and value added services to the end consumer.
We believe that since we are targeting luxury product and thus a demanding user group, we have to always find ways to provide our customer, what they need, how they need and when and where they need it. We feel that it is therefore very important for us to develop a strong brand image and position ourselves in a manner that will assure our customers that all their needs can be met by using our services.

Automobilia Inc wants to differentiate itself from the myriad of other providers by developing a strong brand and being synonymous to quality services and reliability. We feel that in order for Automobilia Inc to be successful we need to build and constantly increase our brand recognition.

Value Chain

Adidas value chain is well integrated and has provided excellent goods and services to its customers. We have a continued commitment to invest heavily in adverstiment to create a strong image and brand recognition. We want our services to and offerings to exceed consumer expectations and provide them with the highest value.
We have selected only reputable brands and have focused on products that meet a specific target market .

Anticipating and fulfilling consumer desires and needs is central to building powerful brands. Automobilia Inc is structured in a way to unite its brand values with the particular expectations and aspirations of consumers
Since we are an online business we will be virtually every markets around the world making our customer base vast.

External Forces

•Socio-cultural
One of the most important aspects of the luxury car industry is the constant change in the wants of the consumers. Consumers are more fashion and brand conscious. Thus we feel that we can tap into this trend and provide customers with trendy cars.

•Demographic
The ongoing demographic trend is the increase of the middle class that has more buying power and thus is looking for luxury products. Furthermore the economic development of other countries such as Asian and India market will increase our customer base, and since we are an online provider we can provide services to this emerging customer base without spending much capital as would happen if we were a brick and mortar company.

•Economic
The luxury cars industry is also affected by the high oil prices, the fluctuation of exchange rates and inflation rates, sales are directly proportional to the growth of economies. Therefore we are aware that a stable market will be one of the keys to the success of our company. Luxury cars require the consumption of a lot a gas, thus if the gas prices are stable more customers will want our products

•Technological
Due to the industry’s competitive nature each companies are making technological improvements and trying to establish themselves online. This will create a fierce competition that will only be own by that company that is able to establish a good image and brand recognition.

The internet is being widely used by everybody also it is being integrated in products such us cellphones. Thus we feel that technology is in our favor since we make it possible for customers to find their desired information and product with the simple use of their cell.

Target Market
We want to target mainly customers in North America since North America represents 50% of the world’s luxury market. Furthermore in United States technology such as internet is widely used. According to behavioral and psychographics analysis by experts in the industry “buyers of ultra-luxury and ultra-exotic cars are different from Toyota and Chevy buyers in more ways than just a bigger budget. They expect exclusivity and uniqueness. They want something different from what other people have”. Additionally, “other to appreciating the brand, the cars and the craftsmanship that goes into them, dealers of ultra-luxury and ultra-exotic brands say buyers also expect a unique and exclusive buying and ownership experience, starting with the sales process” . The conclusion is that luxury, exclusivity, craftsmanship, uniqueness and design are all attributes for the people who will spend that amount of money into a new car. Automobilia Inc feels that it can provide customers with that exclusive experience.

Disclaimer
The above essay was written by a college student and merely states opinions of a college student. However, if you feel strong about responding to the opinions stated, please write to articles@directorym.com and express your concerns.


Educational Content
Home