carsales.com.au: Effective business strategy for online success

This Case Study examines the growth and development of carsales.com, given the increasing trend of consumers using online businesses to source products and services.

As a result of reading this Case Study, students should be able to:

• Describe the business structure of carsales.com
• Identify factors that are significant to the business model
• Outline key features of that business model
• Assess the current and future success of carsales.com

Introduction

For many Australians, gone are the days of trawling through newspaper classifieds in search of a bargain. Instead, they are carrying out their shopping online – from the weekly supermarket shop to big ticket items such as a cars, bikes and boats.

Filling a market need

carsales.com’s continued success and growth in the market is largely due to theentrepreneurship that commenced with Greg Roebuck, which has continued with the incubation of creative ideas within the business.

Standing out from the competition

Marketing researchers and authors of Blue Ocean Strategy, W Chan Kim and Renee Mauborgne, contend that in order for a business to be successful they must create ‘blue oceans’ of uncontested market space ripe for growth.

Creating a culture of innovation

A culture of innovation means creativity and new ideas become central to the internal environment of the business.

Expanding the business

Just consider this simple question for a moment. If you want to get the best result in an exam – what will determine that?

Developing new products

New product development is a vital expansion strategy.

Planning continual business growth

The following quote by the CEO, Greg Roebuck, gives us some insight into the future of carsales.com.

Conclusion

Consumer behaviour is increasingly moving into the online environment, particularly for automotive related products.

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