West Herr Auto Group Strategy Analysis
The goal of this paper is to analyze the successful strategy mapping approach of West Herr Auto Group, a local diversified used car dealer in Buffalo, New York, utilizing the tools and techniques described in Tovstiga’s 2013 book “Strategy in Practice” (Tovstiga, 2013). Summary of the organization
The West Herr Auto Group began with one car dealership in the Buffalo, New York area started in 1950 and is now a group of automobile dealerships, with 18 dealerships and 3 collision centers in the Western New York area selling 20 vehicle brands with annual revenues of over $1 Billion (West Herr Auto Group, 2014).
Internal Basis of Competitiveness
The West Herr group not only sells used vehicles, it also …show more content…
A not so convenient public transport system, salty winter roads, humid summers and a student demographic ensure its year on year sales targets. West Herr’s web site provides complementary convenience to customers looking for selling their cars as well as after sales regular maintenance apart from new and used vehicle purchasing. Its three-day money-back guarantee, 30-day exchange policy and a powertrain warranty ensure peace of mind purchases. West Herr’s social awareness strategy is another plus. West Herr’s lean management has been very agile at handling market conditions including scaling up to handle the Toyota recalls and …show more content…
West Herr has not sufficiently leveraged its proximity to a World Famous tourist location.
Opportunities West Herr could leverage its proximity to the Niagara Falls by diversification into tourism based rentals.
Since West Herr provides financing for its vehicles and invests significantly in frequent showroom purchases and expansions, it faces a threat of credit availability in case of market slowdowns. If gas prices increase significantly for sustained periods or if rapid innovation forces hybrid cars and electric vehicles to become cheaper, it could force customers to use public transport or purchase alternate vehicles, despite inconveniences, leading to surplus inventory in some locations.
West Herr could carefully monitor its inventory ensuring effective inventory turnover since the car market is cyclical (Belvedere, 2014).
Strategies for diversification and expansion should center on the car rental market due to its proximity to the Niagara Falls.
West Herr could monitor sales per employee and profits across showrooms and possibly wind down locations that are not strategically