Sanger Automotive Companies Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Sanger Automotive Companies Case Solution

Introduction

Sanger Automotive Industry, the name was titled from the founder of the company, was founded in 1950 in the United States. The privately owned company deals in automobiles, which are mostly luxury cars,in Florida and Georgia. In addition,the economy is highly dependent on road transport for the movement of people and goods. The company is also considered as the world’s second largest automobile market.

Mr. Robert Sanger, the son of the founder of the company who is the President of the company, is successful in managing the reputation of the company as well as in maintaining strong customer relationships, which can be ensured through their posting of annual sales of $700 million. They are providing exceptional service in the purchase and ownership of luxury cars and their prime responsibility is to increase the number of luxury-car-dealership owned by the company.

The automobile market of the United States’ electric passenger cars comprises of three types of cars. These types are;Hybrid Electric Vehicle(HEVs), battery-electric vehicle (BEVs) and plug-in hybrid electric vehicles (PHEVs).

With the rapid advancement in the growth of the company and the greater customer acceptance from all over the world, Mr. Robert Sanger is focusing on exploring the expansion strategy by focusing on the possibilities of having the exclusive franchise agreement with Fisker Automotive, Inc. (Fisker). Fisker is also a US based car manufacturing company, which was founded in 2007. With the continuous efforts and the rapid growth by mid- 2011, Fisker succeeded in having 47 dealerships throughout the United States and Canada.In addition to this, every dealership requires about $200,000 investment.

Not too long after that, they produced the first car which was named as Fisker Karma Sedan in the year 2012, which runs on electricity supplied by an advanced rechargeable battery. Moreover,by adding more features, the company has the intention to compete with strong luxury cars all over the world.

Situational Analysis

Sanger Automobile, which is a US based company, was founded as Cadillac dealerships in 1950.The company’s primary responsibility is to increase the number of luxury-car-dealership owned by the company. The company has successfully catered a wide range of customers by providing quality services. The company reported annual sales of $700 million by providing almost eight mostly luxury car dealerships in Florida and Georgia.

The US market for electric passenger cars is at its initial stage,and it comprises of three categories; HEVs, BEVs, AND PHEVs. Hybrid Electric Vehicle (HEV), a type of hybrid and electric vehicle that combines a conventional internal combustion (ICE) propulsion system with an electric propulsion system.Battery-Electric Vehicle (BEV) is a type of electric vehicle that uses chemical energy stored in a rechargeable battery packs. BEVs use an electric motor and motor controllers instead of internal combustion for propulsion. In addition, the Plug-in Hybrid Electric Vehicle (PHEVs) also known as Plug-in Hybrid Vehicle (PHV) have the characteristics of both the HEVs and BEVs.

The founder of Sanger, by focusing on the market condition and the projected volumes of the three types of electric passenger cars in the year 2015,is focusing on the expansion strategy of the business and identifying the feasibility of having the franchise agreement with the Fisker, which is also a US-based automotive company which is efficient in producing luxury cars and has the intention to compete within the global market. The projected sales volume for PHEVs is the most enticing opportunity for the upcoming future as it can be seen from the table below.Furthermore, this can be ensured if Sanger goes with Fisker.................

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