Business Strategy

Business Strategy

Maplecrest Ford Lincoln utilizes the Treacy & Wiersema Model in their Business Strategy.

  

Breakdown

The buyers’ bargaining power is moderate. The reason there is a moderate bargaining power is due to the nature of this business. When a person  walks into a dealership, finds a vehicle, prices it out and what not, it will either suffer or strive depending on the health of the credit score if applying for a bank loan and so on. When shopping for a vehicle, someone's options are not always laid out, cut and dry of what they will expect. There are ultimately too many variables to dictate how strong bargaining power is when looking at the vast amount of vehicles sold and what the nature of those deals were.

The threat of substitution is  moderate. Being that Maplecrest strictly sells new Ford and Lincoln products, that in itself provides a safety  around their vehicle sales, parts and service, as well as Ford-Lincoln specific products. This is why when making a vehicle purchase, you are asked if you are interested in protection plans or contracts that further ensure the threat of the consumer substituting. There is no one that can replicate their product, but the threat comes when there is one similar. Other auto-makers fight for some titles that Ford retains and vice versa. Other high-volume dealerships, for example; Fette Ford, Lincoln of Wayne and others can substitute for Maplecrest in terms of selling the same vehicle at a better price. They may even find a way to make the customer's service experience worse or better. The true success of this business, being not a corporate run entity, depends solely on the customer service and business strategies implemented by Maplecrest Ford Lincoln. In their used car sales, which is another business in itself, their threat of substitution is even higher, considering that at that point brand loyalty usually diminishes as the consumer is not always interested in a Ford or Lincoln product.

The bargaining power of suppliers is low to moderate. In the auto industry, it is a predictable market, yet also rapidly changing. Maplecrest Ford Lincoln's success within the auto sales industry is dependent upon the command of its supply, positive relationship with transporters, and ultimately dependent on how many units are sold. While suppliers might have a relatively high bargaining power, they rely heavily on leasing companies, dealerships, and government fleet sales to move their products and bring in revenue. Maplecrest is generally quick on moving inventory so they tend to have some bargaining power over its suppliers. The same goes for parts sales. If the dealership doesn't have a necessary part in stock, it is of no stress that a local supplier, retailer, or warehouse has one ready for pick up or delivery to the dealership.

There is a low to moderate threat of new entrants. In physical terms, being that the dealership is located in an area where new car dealerships are somewhat scarce and the target market is very large; it's a hard area for new entrants. Centrally located, here is where you can attract not only the customer who finances a used Ford Focus, but also have someone purchase a 2020 Lincoln Aviator outright for $80,000. This works to the stores advantage, as they tend to many different consumers. In market terms, there is always a threat in the auto industry in terms of selling due to the pace that vehicles are advancing at this point. This is ultimately in the hands of the automaker.

The rivalry is moderate to high. Due to the nature of the auto business, there is a fierce competition in selling. With personal experience at Volkswagen, Volvo, and now Ford; it's evident that there is a standard that needs to be set and met every month. When the dealership creates a standard for themselves that reflects outstanding and superior selling tactics, it separates them from other competitors not only locally, but regionally. Continued success throughout time is what boosts rivalry among others in the area that are selling a similar product, most of the time by a different brand. In the case of Maplecrest, another local Ford store in the area is Maplecrest Ford of Mendham, it's sister store. Evidently, a lot of the rivalry would stem from Lincoln sales, as there is a bigger area of possibility for another Lincoln retailer to work with a client that could have gone to Maplecrest in Vauxhall. In terms of service, there would be even more rivalry as repair shops and service shops are found more often than dealerships.

Competitive Strategy
Maplecrest Ford Lincoln falls under the focused differentiation category within their competitive strategy as a retailer in the auto industry, especially in an urban area outside of the NYC area. The dealership in particular offers unique features that subsequently fit in with the demands of that channel. For example, with a fleet of 20-30 loaner vehicles ready for use, along with a full valet and driver service; they continue to reiterate the standard they prefer to be held at competitively. The customer is always thought of, in whatever transaction being held.

It is common to see a focused differentiation strategy in businesses that concentrate their sales efforts in one or two different sales channels. For example, whether it is internet sales, livery sales, or in-person sales. These different ways of selling the same product only benefit the company, yet still generally focused. This strategy extremely values the consumer, buyer, and purchaser, in that order. Maplecrest Ford Lincoln is always looking for ways to separate themselves by nearby stores in ways of competitive purchasing and leasing options, online convenience, stocked inventory, and enhanced customer service. In terms of competitive pricing, Maplecrest guarantees everyone gets approved for a vehicle if they are working. The rest is up to the consumer to get the type of deal they want. In a lot of ways, that guarantee may seem more of a negative attribute, but it attracts customers who have the want/need that Maplecrest can fulfill, being a need/want of a vehicle or service. The service department also always seeks ways to enhance the customer experience in ways of employing trained Ford Lincoln technicians, and employing most of the same service managers and staff for over twenty years. These are all just some of the ways that Maplecrest Ford Lincoln sets itself apart within their differentiation strategy.