2. As the sole agent for Rolls-Royce and Bentley motor cars in Hong Kong, MD
Motors was a division of Inchcape , a UK-based international service and
marketing group. On a worldwide scale, Inchcape was the largest
independent importer/distributor and retailer of motor vehicles, with sales
of over 350,000 cars a year in over 33 countries.
As part of the giant Inchcape group, MD Motors was one of the oldest motor
trading companies in Hong Kong. The dealership was originally called
Metro Dodwell Motors, but changes in the corporate structure led the
Company to be simply known as MD Motors.
MD Motors remained a very profitable Company throughout the
1990s, even though sales did drop off from a record set in 1993. As of the
end of 1997, MD Motors controlled a small but highly profitable 2.4% of the
luxury car market in Hong Kong, behind other luxury brands such as
Mercedes, BMW and Lexus.
3. Car industry in Hong kong was mainly
preferred for the luxury base
Despite of govt. Strong rules and
regulation, sale never decreased as people buy
their pleasure and status rather than for
convenience and necessity.
Sale of luxury car was stable even if GDP falls
down
4. Bargaining power of suppliers
Japan and Europe have the assembly unit and
manufacturing they are the most selling
countries of cars.
Threat of new competition
No strong government policies.
Bargaining power of customers
Annual growth increases purchase power
increases
5. Threat of substitute products or services
Many competitors with new models were
introduced as substitute to high price
Intensity of competitive rivalry
In response to the boom in the luxury car
market, many players wanted to participate in
the action by introducing new models.
6. Positioning
Excellent after-sales service
The Cars
