McCarthy Motors Limited is owned by Bid Auto (Who Owns Whom, 2008). Bid Auto is the vehicle retail and services division of the Bidvest Group Limited, a JSE listed investment holding company. Bid Auto is one of the largest competitors in the South African vehicle retail market with more than 130 dealerships and service outlets countrywide (www.bidvest.com, 2008). The Bidvest Group Limited acquired full ownership of McCarthy Motors Limited in 2004, giving Bid Auto access to all existing McCarthy dealerships and the 500,000 McCarthy customers nationwide (estimation, www.fin24.com, 2004). McCarthy Motors retained its brand name and its (highly experienced) top management team of 11 executive directors and 7 non-executive directors, with Mr. Brand Pretorius becoming Chief Executive of Bid Auto after the 2004 acquisition. This acquisition provides McCarthy Motors with the stability and resources of an international, highly diversified holding company. Their position within Bidvest gives McCarthy the capacity to absorb the current economic storms in South Africa better than their competition. Bid Auto currently forms 21% of the Bidvest Group (Who Owns Whom, 2008), with the other 79% diversified across other retail markets.
[...] Its resources strengths include the following: Wide geographic presence Strong financial conditions Distinctive competence in heavy commercial equipment leasing and support Its major resources weaknesses include: Behind rivals ion electronic commerce. Most of the transactions can not be concluded over the internet. They are either done by telephone or physical office visit. Too much under utilized plant capacity. Super group Super group is a multinational company, but started its operations in South Africa in 1987. The company deals mainly passenger and commercial vehicles sales and rentals. It sells motor bikes, but only the Honda brand. [...]
[...] Key pressures include high interest rates, difficult financing options, supply pressure on imports, an exchange rate that also means exporting is more lucrative so increased supply pressure there. Due to an oversupply, the second hand market is also swamped, which means that the buying cycle for new vehicles is now also longer due to large value hits in the first four years of ownership. The target markets: With a structure spanning most brands and almost every sector of the market, McCarthy has multiple and diverse target markets. [...]
[...] Competitors are trying to differentiate themselves by moving into related markets, such as financial services, import and distribution and car rentals. McCarthy differentiates itself through online retail and heavy equipment initiatives Trends and driving forces in McCarthy's environment As we mentioned in the previous section was characterised by a weaker South African economy. Due to macro economic forces and a weaker exchange rate, fuel prices started rising rapidly. When fuel prices rise, motoring becomes more expensive. The implementation of the NCA also made it harder to buy cars on credit. [...]
[...] The supply side of the market is thus well established. The South African consumption of motor vehicles roughly cars a year makes up only a small fraction of the manufacturing capacity of these manufacturing companies. The majority of vehicles manufactured in South Africa are exported to China, Japan and other eastern markets. These established vehicle suppliers have international financial backing. These major brands supply 80% of all vehicles sold in South Africa, with smaller (and some exotic) brands filling up the remaining 20%. [...]
[...] This trend, together with the economic conditions mentioned above, places pressure on the used car market. The used car market is, however, still holding its own with McCarthy reporting a 10% growth for used cars in their 2008 interim report. The abovementioned economic conditions are forcing McCarthy and its competitors to diversify their services to try and lure ever-shyer consumers into their dealerships. The first strong driving force born out of the weakening market is a noticeable shift towards a customer centred approach (refer to Appendix A). [...]
Source aux normes APA
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