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…
In addition, this is in the only opportunity to gain the franchise in these areas, so I recommend the company to pursue the franchise for a plug-in hybrid electric vehicle. When considering the competition of the other three franchise dealer and other kind of PHEVs, I recommend the company to adopt the low-price strategy to gain more market share though it needs more volume to achieve the break-even point. By the way, the executive can negotiate with the Fisker Automotive Inc to get the better supports. Analysis for alternatives
Exhibit 1 2.6% of total new passenger car sales in 2011, 7% in 2015 | Estimate annual growth