Management Case
Essay by franklyn4000 • January 1, 2013 • Research Paper • 559 Words (3 Pages) • 1,273 Views
Cameroon for the first five years.
3.1.2 Potential Entrants
The second hand is not very different from the brand new car market and has been growing in
recent years. It means that it is a good opportunity to offer existing and new customers not only
cheaper cars but with satisfactory services. The risk of other new entrants exists, but they are most
likely to be located in the French provinces because up till now there are about seventeen (17)
companies in the Car industry of Cameroon and all in the French speaking provinces. More so
there is no legal barrier to enter this industry.
3.1.3 Suppliers
The suppliers of the second hand cars are those who have bought cars and intend to resell it in
Europe, America ad Japan in most cases. BEFCO Trading Ltd shall focus on sourcing second
hand cars from the Swedish second market (www.blocket.se) from start and can later on choose
other European countries such as Germany and Belgium. The Swedish used car market has
about 100,870 cars of various brands including the five brands selected by BEFCO Trading Ltd.
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The suppliers usually leave their contacts on the second hand website and they are some few car
dealers who also buy cars from these suppliers and resell at a slightly higher price. BEFCO Trading
Ltd shall deal directly with the suppliers or their agents and get the products at a relatively
cheaper price thanks to the network of the founding entrepreneurs in Sweden.
3.1.4 Substitutes
The price that consumers are willing to pay for a product depends in part on the availability of
substitute products (Barringer and Ireland, 2006). This is definitely true since there will be substitutes
from different countries such as Belgium, Germany and Japan apart from the Swedish second
hand cars. BEFCO Trading Ltd shall sell only five brand of second hand cars from the beginning
namely Nissan, Renault, Ford, Mazda and Volkswagen second-hand cars as its ordinary
activities. Having this strategy means other car brands like Peugeot, Audi, Suzuki, Volvo, Toyota
and Mercedes
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