its competitors where the prices remain same. Mini-Case: Finding a Competitive A
ID: 390242 • Letter: I
Question
its competitors where the prices remain same. Mini-Case: Finding a Competitive Advantage Copreneurs Ed and Yolanda recently opened a vintage used car lot called Cherry Lane. They sel 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. II. As Ed and Yolanda begin the strategic planning process, what steps should they III. Considering the three basic small business strategies identified in your textbook which one would work best for Cherry Lane? Why might that strategy be successful?Explanation / Answer
1) I will suggest the following steps in stratgic planning process to Ed and Yolanda:
1) Formulate the elements of strategic intent:
They should define the long term vision statement as well as the mission statement. Mission will tell us why its corporations exist in the marketplace.
2) Gap analysis : It should be done to know whether organization stands and to which place it wants to reach with its business goals .
3) Setting up the specific goals to fill the gap:
An organization might define specific, measurable, attainable, realistic and time bound goals to gain its strategic position in the race of competition.
4) Evaluation and control:
In this , they should measure the action plan against some benchmark. If , things will not upto marks then corrective measures will be taken.
2) They should adopt cost leadership strategy . It will bring more customers to them and if they will position their services and offerings as distinguishable in the marketplace then definitely they will earn substantial profit in the long run. Even , they should use smarter technological advancement so that to reduce the cost of operations . Even , social media tools will make them a local brand which will bring business opportunities to them.
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