Urban auto dealers pack up, rural dealerships pick up

The "Struggle Of The Fittest"  idea is still dominating the Human Intellect. May it be social, geographical or any ecologiacl environment, there is struggle for existence and survivorship, and our business environment is not new to this idea.

 History has proven that thsoe organizations which were able to adapt the consumer markets, those who struggled across diverse set of segments  has flourished successfully, irrespective of the nature of organization, whwether big or small. I won't confuse you so much. Here let me take an example of Autodealers.

In Autodealers market there is a lot of competiton going on, competition for market, competition for profit, competition for expansion and most of all competition for survival. Most of the dealers in urban ares are facing fierce competition as the  cost viability is under pressure, Despite of decrease in volumes thre is hardly any increase in the competition.not only within external agencies but within the internal environment as well.

Therefore the dealers,who are fit for competitive business environment  have to invest more in sprucing up their showrooms and in advertisements and at the same time  give the best discounts and offers in the city. So the dealers who are not competitive enough are replaced by the strong ones.

Due to this fierce competiton there has been higher degree of business diversification into newer, related areas of operations such as insurance, workshops, used cars etc. Moreover the dealers are now migratng towards the semi-urban and rural areas in order to acqure the potential benefits of these geographical segmants.

It is for that reason, recently we witnessed the Post Marut's tie-up with SBI to penetrate into the deeper regions of the country.

Future will see lot of players enetring new geographical markets in order to acquire the potential profits, But I will remind you as what I said earlier.... "Only Fittest Wil Survive".