Do a Competitive Analysis of Your Firm

Written by: RODRIGO TORRES eCornell course LM502: Strategic thinking Assignment # 2.

1. Identify the KSFs that you believe drive value in your industry and why. (If your company produces goods and services for more than one industry, choose the one you most wish to explore.) Industry: Automotive aftermarket parts retail Industry in El Salvador.

Based on what we have identified as the main customer needs and company survival premises within the industry, I have done a Key Success Factors Analysis for the industry. It is important to consider that demand for aftermarket parts is driven by the age and mileage of vehicles in use and generally increases when fewer new cars are sold and older cars are kept on the road longer. In my country, more than 70% of the vehicles in use have five years or more, and also there has been a significant increase in the number of importations of used vehicles from US to our country. These two conditions obviously are favorable for our industry, and we are taking advantage on these. In El Salvadors automotive aftermarket, customers look for low prices, high quality, and diversified auto parts for various types of cars. Customers also seek professional and reliable repair and maintenance services in convenient locations. To satisfy customer demands and survive the competition, firms have to reduce costs, control the quality of the auto parts and service, build a compatible inventory of various auto parts and choose a convenient location. It is easy to draw key success factors for Super Repuestos or other similar competitors who want to compete in this market. What Do Customer Want? Competitive Price How do compete? ( What is needed to survive) Cost efficiency Key Success Factors - Build Economies of Scale to decrease costs. - Build a win-win relationship with suppliers. - Marketing of the brand Super Repuestos as a quality auto parts retailer to satisfy our customers needs. - Purchase most auto parts from qualified plants (ISO/TS16949) to assure product quality. - Maintain a diversified contacts networks in Asia, US and Europe to have several options of suppliers. - Implementation of customers loyalties programs with

High Quality

- Good reputation in order to gain quality recognition. - Clear understanding of the customers needs.

emphasis on always listen to what our customers want

Diversified auto parts for different types and brands of cars

A wide range of products to satisfy different demands. (inventory management)

- Expand the current supply chain to cover the market needs and build the matched inventory for the vehicles in El Salvador. - High Technology Investments Required to deal with automation of management of large inventories - To have a well trained staff in auto parts and computerized catalog. - Have a high trained team to provide repair and maintenance service, at maintenance centers well equipped with specialized tools and equipments. Convenient locations for customers, near of the most important cities in the country.

Reliable repair and maintenance service

Opening locations where customers can easily get the services and products at their convenience.

Convenient Location

2. Identify the KSFs your company has achieved. I identify that Super Repuestos has achieved all the KSFs mentioned above, except the one related with a high trained team to provide maintenance and services. Thats because our company doesnt want to enter to the market of automobile repair services, because that would be interpreted by the customers of DIFM segment as a potential rivalry with them, and could affect the close relationship with this segment. 3. Identify your company's core competencies. Explain the link between your company's KSFs and core competencies. Core Competencies: - Excellent knowledge and experience about suppliers, prices and costs. - Capability of buying large quantities of parts of the same suppliers if necessary. Core Competencies - Deep understanding and knowledge of the El Salvadors auto parts market and the needs of the customers. - Probed experience with many suppliers, letting us to know where is the best place to purchase with the desired quality at the better price. - Ability to stay close to the customers, as a KSFs: - Build Economies of Scale to decrease costs. - Build a win-win relationship with suppliers.

KSFs - Marketing of the brand Super Repuestos as a quality auto parts retailer to satisfy our customers needs. - Purchase most auto parts from qualified plants - Maintain a diversified contacts networks in Asia, US and Europe to have several options of suppliers. - Implementation of customers loyalties programs

result of very intimate relationship with our customers and developing of loyalties programs. -Ability to react rapidly to shifts on what our customers are demanding. - Skills on efficient supply chain management and an entire organization aligned with the operational excellence in the process involved in the supply chain and the channels of distribution. - A complex Information Technology System highly parameterized with the accurate data for purchasing optimization model. (When is the right moment to purchase?, How much?, Stock levels, Keeping units, optimal prices, etc) - Personnel with the more valuable knowledge in the auto parts industry in El Salvador, also with a deep commitment with the objectives and strategy of the company, with a well designed program of rewards and incentives. - Reliable and efficient infrastructure for selling our products (product picking, distribution, customer satisfaction handling) - Ability to design, implement and establish new locations with all requirements to serve our customers needs in a relatively short time.

- Expand the current supply chain to cover the market needs and build the matched inventory for the vehicles in El Salvador. - High Technology Investments Required to deal with automation of management of large inventories

- To have a well trained staff in auto parts and computerized catalog.

- Convenient locations for customers, near of the most important cities in the country.

4. Looking into the future, you may or may not have the right KSFs and competencies to guarantee continued success. a. Are your current core competencies appropriate for success in your industry? Why or why not? (Draw on your five forces analysis for this question.)

Sure. I think that we have the appropriate core competences to maintain the leadership in the industry and continue having success. We have a very good knowledge of the Salvadoran market, which permit us to have the optimal balance for inventory management, according to the brands and types of vehicles running in El Salvador. Our value proposition is based on always have the part that our customers are looking for, with high quality in our products, providing also the knowledge and accurate advisement to find solutions to problems related with the vehicles in El Salvador, at convenient locations; All this at a fair price I think that our company has been giving this to the customers for over 40 years and they recognize our leadership in the industry, however we are aware that we have competitors behind us, trying to

copy our core competencies in order to gain a better position, so I believe that we have to keep reinforcing the competencies that we already have and possibly developing new additional competencies, that let us to continue our expansion plan to the Central American region with great success.