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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 …show more content…

But what should be considered seriously is that at this high price and the competition of the other three franchise dealer, could the company gain the adequate market share of the hybrid vehicles. The most well-known PHEVs are Chevrolet Volt and its price is only $41000. The other point should be considered is though the market area is the wealthiest in the U.S., how much willing do they have to purchase a high price hybrid-electric car and really to buy. The third question is the delivery date and the back-out rate. How to shorten the delivery date and reduce the back-out rate, could the company negotiate with the Fisker Automotive Inc to get better conditions?

Alternatives Alternatives | Pros | Cons | profits | Do nothing | * No extra fee * No risk | * Losing an opportunity to place itself at the forefront of marketing a luxury plug-in electric vehicle * Lose the opportunity to add reputation * Losing the increasing market of hybrid plug-in electric vehicleSee Exhibit 1 | | Purchase the franchise | Exhibit 1 is the annual growth forecasting Exhibit 2 is the sales forecasting at different price | Low price =96000 | * Low price can efficiently

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