Pandemic Product Strategy Prediction
The news from the business world regarding the effects of the COVID-19 pandemic has been mostly negative. The shutdowns and supply chain issues, to name but two, caused many businesses great harm.
Today, I'd like to make a prediction about product strategy as a result of the pandemic.
I believe car dealerships will become order placement and fulfillment facilities and as a result, will not hold large numbers of new vehicles in inventory.
There are three reasons I believe this.
Customers are more accustomed than ever to online purchases of expensive items, even homes.
This will reduce corporate inventory levels that is tied-up in depreciating cars that sit on lots. This will reduce the need for profit-killing close-out sales
The sales teams will be incentivized to sell higher profit services and maintenance agreements and not just cars.
An example of this is Carvana. Place an order online and they deliver the car to you or you get it from their cool, gimmicky "vending machine".
I welcome your feedback.
What do you think of the predictions and rationale?
What examples do you have?
How has your firm adjusted strategy due to the pandemic?
If you want some ideas to dramatically improve your product strategy and commercialization, let’s talk.
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