Business Strategy

                                                                                                 

                     BMW of Roxbury's Five Forces Model

                             
 

Force	Strength of Force	Explanation
Bargaining power of customers	Low	Customers don’t realize true value of cars
Threat of substitutions	High	Customer can use public transportation such as buses, trains, and taxis
Bargaining power of supplier	High	Car dealers control the true price of a vehicle
Threat of new entrants	Low	Laws that new BMW dealerships can't be built within 25 miles
Rivalry	High	Many different car dealers to choose from such as Mercedes, Audi, and Lexus

The five forces of a business are the Bargaining power of Customers, threats of substitutes, bargaining power of the supplier, threats of new entrants, and rivalry. With BMW of Roxbury dealership, the first force is low due to the fact most customers do not realize the value of cars that they could mean at the same moment or in the future. With threats of substitutes is a problem due to the fact its high because of the possible available/use of public transportation such as trains, taxis and buses. As stated with all of those alternatives there is a risk of them making it harder for the dealership to convince customers to invest in a new car instead of daily public transport. Another possible high issue is the bargaining power of the suppliers since of cars are in high demand for the most part that leads to car dealers increasing the price; the suppliers end up having more demand for the cars which leads to them having power over the dealership. If the supplier decides against working with the dealership, it will lead to a possible shortage until the dealer gives in or finds another supplier. The one benefit about the BMW of Roxbury is it had a plan or deal in place where other new BMW dealership can not be built within a 25-mile radius that prevent a battle for territory between the two dealerships and cause of that the threat of new entrant is low. The negative is just because other BMW dealerships cannot be near it does not mean competitors of other business cannot be. So the Rivalry is high due to the competitiveness of other dealerships such as Audi, Mercedes, and Lexus, which will bring a variety of car that people can choose from which leads to more dealerships fighting to get new clients, same, old and even trying to build a client of one dealership to another.

Competitive Strategy

Next is the competitive strategy that has four areas, Cost, Differentiation, Industry-Wide, and Focus, and with those they become different areas that cover certain descriptions. One is Industry-Wide Cost which would be the lowest cost across the industry while Industry-Wide Differentiation would be the better product/service across the industry. In a different direction there is Focus-Cost which is the lowest cost within a certain industry segment, and then there is Focus-Differentiation, which is the better product/service within an industry segment. With BMW of Roxbury, they are Focus Differentiation because of the fact they are in a certain location and aim to provide clients old and new the best product for a car as possible compared to their competitors.
COST                                                 DIFFERENTIATION

Lowest cost across the industry	Better product/service across the industry
Lowest cost within an industry segment	Better product/service within an industry segment

Business Process

When it comes to the business process the car dealership deal mainly with the sales and/or customer relations aspects of the business of car retail. For BMW of Roxbury, they are a structured process with the fact the employees walk the customers through operations of an online system that is called Reynolds and Reynolds. After that, the employees will work with their customers to make a deal and ensure the customers purchase their vehicle of their choice. There is also the ability of the this being used to be able to do a service/ repair on a car for a client. With all of that being said Reynolds and Reynolds purpose are to help customer easily figure out which car they would like, plus give information about each vehicle. The service will always help the BMW dealership by storing, organizing and compiling the data it needs. Storing information about the client for employee use such as name, phone number, the car they have and any other information that will be useful to the dealership to either help with finding a new car or if they need to do a service on a car to make it easy for the customers.

                                                    Value Chain  

      With Inbound Logistics the dealership receives the cars from the manufacture which then turn around with their operation of looking to sell them to the current client or trying to get new clients from competitors. Outbound is the cars to the customer which leads to the final sales/deal between the client and dealership. After all that the dealership stays in touch with the customer and is always willing to help out the customer with issues or any questions the customers have.

Inbound Logistics	All types of BMW cars from manufacture
Operation/Manufacturing	As car retailer the operation is to sell cars to out current clients as well as get new ones to buy other brand of cars over others.
Outbound Logistics	The cars to customers
Sales and Marketing	Sell the final product (car) to possible customers, give information, Some advertising on social medias
Customer Service	Engage customers before and after sale of car and will be willing to answer any question or issues.