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Growth and strategy.

What is it about?
Car dea­ler group on the way to the right growth strategy.

Chal­len­ges:

  • Auto­mo­ti­ve tra­de indus­try in mas­si­ve con­cen­tra­ti­on process
  • Car dea­ler group has quin­tu­pled its sales in the last 10 years
  • Strong exter­nal growth through inte­gra­ti­on of intrab­rand competitors
  • Three core brands and two niche brands, with one core brand in deficit
  • Pro­fi­ta­bi­li­ty slight­ly below average, strong busi­ness growth leads to high debt ratio
  • The strong growth of the past incre­a­ses the pres­su­re to beco­me more profitable
  • Manage­ment level still too stron­gly gea­red to a medi­um-sized com­pa­ny ins­tead of a retail group
  • Farms are mana­ged in a very decen­tra­li­zed man­ner. Principalities. 

Pru­den­tes Approach:
  • Com­pe­ti­ti­ve stra­te­gic posi­tio­ning in coope­ra­ti­on with manage­ment and shareholders
  • Struc­tu­ral con­cept to redu­ce com­ple­xi­ty cos­ts and incre­a­se trans­pa­ren­cy of the respec­ti­ve brand results
  • Out­sour­cing of car dea­ler­s­hip real esta­te to owners­hip com­pa­ny in a tax-opti­mi­zed manner
  • Orga­niz­a­tio­nal con­cept accord­ing to “Hub-and-Spo­ke” model; ther­eby redu­cing the num­ber of sites and expan­ding the remai­ning sites.
  • Instal­la­ti­on of a “Shared Ser­vices” as cen­tral func­tions in Accoun­ting, Con­trol­ling, Mar­ke­ting, Online Sales, GW Valua­ti­on, Dis­po­si­ti­on, IT, Legal
  • New manage­ment levels and repor­ting chan­nels introduced
  • Future work­shop with all mana­gers and top per­for­mers to pre­pa­re manage­ment for the “new era” 
  • Deve­lop digi­tal stra­te­gy to pro­fes­sio­na­li­ze online sales and digi­tal­ly inte­gra­te inter­nal processes

    Results:

Increase in earnings within 2 years

Growth strengthened by new locations

Shared service installed

EN