Have a distribution network well dimensioned and adjusted to the needs of the customers and the country in which a product is sold is something that is essential for a company. This maximum must be fulfilled even better if the company of which we are speaking belongs to the automotive sector.
car brands live from the sale of their cars and if a region of a country is not well covered, good insurance, another competitor will, and it will be strong. He knows well Fiat Chrysler Cars (FCA), and to reverse the loss of sales that are suffering in the united States have decided that the best solution is for opening new dealership.
As we have been able to know, within the expansion plans of the FCA in the united States stria opening of about 380 dealers new. With them the final network of distributors authorized officers in the country would amount to a total of 2.850 to 2.900 centers.
Within these plans, FCA will focus on strengthen some areas such as Houston. The idea that you have in the signature is to open five new stores to cover the metropolitan area. With these the total of dealers at Houston (city and nearby areas) it would be around 17.
however, in the group italo-american, they may have come to this conclusion, it seems that has not sat very well at the centers that are already operating. By the looks of it, several official institutions have complained that the competition would be much greater and therefore the price of cars would fall drastically.
Obviously this is so, since the greater the demand the prices fall more, but if the shops are open with care and are well organized should not be counterproductive to the development of the group’s sales. However in FCA are aware of that the profitability of each dealer may be less, but not why it must be so, since they should strengthen other areas of your business.
Source – Fiat Chrysler Cars (FCA)
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