U.S. Automotive Retailing: 1995-2002 (C) Harvard Case Solution & Analysis

Demand in some markets, there is a strong taste for variety. This means that markets are made up of small niches, each of which has a strong preference for different versions of the core product. Examples include markets with a strong local character (local video store, dry cleaners, etc.), the products attractive to specialized tastes (Microbrewed beer, specialty restaurants, etc.), and markets for entertainment content. Car retail falls into this category, because the demand is fundamentally local. A key strategy in this sector is consolidating. Study attempts to consolidate the automotive retail, emphasizing their pitfalls, and show that they were based on overly optimistic estimates of the potential economies of scale and create customer value. "Hide
by Nabil Al-Najjar, Neil Pardasani Source: Kellogg School of management 5 pages. Publication Date: January 1, 2006. Prod. #: KEL202-PDF-ENG

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