News Reports

Question 1

Technology news

Answer 1

1. New technology evolving - can diagnose problem quicker by attaching this tech to the dashboard
2. Sensors are already built into the car to identify problems that would otherwise take ages to identify

Problems:
- Dealerships are buying this equipment and taking this cost to cutomers
- Regular updates as cars are continuing to change
-Some problems could be overlook leaving customers breaking down
-Mechanics need to inspect parts and carry out close inspections

Question 2

Sales on new cars are easier

Answer 2

1. Unique
2. Scope to adjust the selling price
3. Discounts are not given on new cars due to the already low margins
4. New cars are harder to sell due to the mass production and MRRP is published

Question 3

Promotions on purchasing services

Answer 3

• Fluctating prices, means its better to purchase plans at an agreed price
• Simplifies the cost of serving rather than a lump sum
  -Cost of services could vary because the change in publish list items that are prodouced by manufactures

Question 4

Courtesy cars

Answer 4

1. Driven carelessly by customers which may suffer excessive wear and tear
2. Will need to be check regularly
3. Can sell them as used cars and count these to their targets

Question 5

Add-ons

Answer 5

1. Be more aware of the cost of changing colours and certain specs as this could double the cars price

Question 6

Electric cars

Answer 6

• Remain low in Wellend
• They are popular in the other coutries
• There is an additional cost of customers as they will need to install charging points
  Wellandians are reluctant to buy EV cars - limited availabilty of charging points

Question 7

What are porter 5 forces

Answer 7

1. Barriers to entry
2. Suppliers power
3. Buys power
4. Threat of new entrants
   5.Threat of substitutes