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BMW Motorrad Portugal, location of a new dealership : a case on industry analysis and location and pricing strategies

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The motorcycling market in Portugal is growing significantly and the upcoming years seem extremely promising. In fact, in the segments where BMW Motorrad Portugal competes, we are observing growth rates of 20% from year to year. Therefore, there exist business opportunities that no brand can afford to ignore, and BMW Motorrad Portugal must not fall behind. With the possible opening of a new dealership, new opportunities emerge and Carlos Martins, the head-manager of BMW Motorrad Portugal, has to attain as much positive value as possible from those opportunities. The challenge is to find the best location for the new dealership, with the north or the south of Portugal as possible locations, while taking into account all the variables that enter in the process and new perspectives for the actual structure of BMW Motorrad Portugal, namely the aftersales' services and pricing strategies along the supply chain. The goal is to maximize profits and fulfil clients' needs. To do so, the cross-points are whether to locate the new dealership in the north of Portugal, where there exists high density levels of population, or in the south of Portugal, where we can find the higher levels of financial affluence, and whether a new after-sales paradigm should be implemented or a new pricing strategy within the supply chain should be taken into consideration.

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