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MBA 5240: Sanger Automotive Companies

Problem
Sanger Automotive Companies, Inc. is one of the most successful auto dealers in the United State. In September 2011, the executives met a problem that whether or not to pursue an exclusive franchise for a plug-in hybrid electric vehicle. Plug-in hybrid electric vehicles were in the embryonic stage of the product life cycle. This decision is a complicate one which the executive must find the sufficient evidence to support. SWOT Analysis

Strengths| Weaknesses|
* The company is one of the most successful auto dealers * No incremental cost for dealership land or construction was necessary * Fisker’s engine for the vehicle is excellent and is defines as “Uncompromised Responsible Luxury”, it has prominent quality * Has an established reputation for delivering exceptional customer service in the purchase and ownership of luxury-class cars and its loyal customer following| * The price of this hybrid plug-in vehicle is high * | Opportunities| Threats|

* Plug-in hybrid electric vehicles were in the embryonic stage means this market is a uptrend market * It would place itself at the forefront of marketing a luxury plug-in hybrid electric vehicle * It would be highly regarded in the U.S automobile industry and franchise agreement would add its reputation * The company already had a vacant and up-to-date dealership location available to showcase and service. * The forecast of car sales will represent from about 2.6% in 2011 to around 7% in 2015, this is a very high growth rate. * The target market area is the second in the percent of cars sold that are luxury brands * The market area can support only one Fisker dealership| * Consumers demand for these vehicles remained unclear * Product of capacity of manufacturers was limited which affected their supply * U.S. economic growth in 2011 was sluggish * Competition is projected to increase dramatically * Automobile...
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