Johnson How to Make Dealerships Strong

Johnson How to Make Dealerships Strong - Johnson How to...

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Johnson, How to Make Dealerships Strong, WSJ, Oct. 2008. “How to Make Dealerships Strong -- and Happy.” By M. ERIC JOHNSON and ROBERT J. BATT Manufacturers and their dealerships all too often become victims of their own success. The manufacturers add new outlets to fuel growth, which can lead to too many dealers competing for the same customers. The weak dealers see their sales and profits drop, and the strong see growth stall. In rocky times, this is bad news for everyone. The way out of this downward spiral is not, as many manufacturers believe, to cut costs, offer sales incentives or add even more dealers. Such steps may boost results in the short term, but quickly lead to erosion of dealer profits and long-term sales. The answer is to strengthen manufacturer-dealer relationships. Companies can pull out of downturns, strengthen their competitive advantage and position themselves for growth with three simple steps that we have identified through three years of interviews and field research: Make the dealers feel needed -- which may require eliminating those with the weakest results; Enhance support for those that remain, developing products that help them maximize profits and eliminate competitors; Go out of your way to incorporate them into your company's culture and mission. Companies as diverse as piano and power-tool makers have succeeded using such strategies.
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Johnson How to Make Dealerships Strong - Johnson How to...

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