Car Wow Case Study: SME Challenges, Growth, and Government Support

This report provides an in-depth analysis of Car Wow, a UK-based small and medium-sized enterprise (SME) operating in the automotive sector. It examines the company's founding, entrepreneurial characteristics, business start-up process, and competitive advantages. The report delves into the challenges Car Wow faces, including marketing limitations and customer retention, and explores various growth and development strategies such as market penetration, market development, product expansion, and market segmentation. Furthermore, it highlights government support schemes available to SMEs. The conclusion emphasizes the importance of entrepreneurship, effective strategies, and government interventions for SME success. The report recommends designing growth policies, understanding change management issues, and implementing strategies like business expansion, joint ventures, and diversification to ensure Car Wow's continued growth and competitive advantage.

Small and medium
enterprises

INTRODUCTION
Small and medium-sized business are referred as the business which maintains assets, revenues
and number of employees under specific regulations. SMEs are classified on the bases of their
investments in specific sector such as small business sectors investment range is between 1 Crore
to 10 Crore and turnover range is between 5 to 50 Crore on the other hand, medium scaled
company’s investment range between 10 to 50 crore and estimated turnover range is 50 to100
crore. SMEs are established in various kind ownership such as proprietorship, cooperatives,
companies as well as partnership. In this report the chosen organisation is Car wow company
which is UK based organisation provides a platform to buy new as well as used cars from
different franchised dealers. The respected organisation is founded in 2011 by James Hind,
Alexandra Margolis and David Santoro, headquarter is established in London, United Kingdom.
Car wow is the automotive organisation which is established by the entrepreneurs who are
extremely innovative, having clear and attainable vision, mission and enough motivated to run
business in effective manner. To run business in competitive environment various challenges are
face by the SME (Chuong, 2020). To protect these enterprises government developed various
policies to support them. In this report various current contemporary issues as well as
government policies to for small and medium enterprises to address these issues. Different
organisational growth policies and sources of finance is being covered in this project report.
There are primary as well as secondary research are utilised in order to gather effective and
relevant data.
Finding
There are different factors which are covered in this section that help to understand whole factors
on proper manner that are essential for business growth and development. Car wow organisation
which deals in automotive sector is being affected by various factors that are discussed below:
Nature of entrepreneur
Entrepreneur is referred as an individual who have enough courage to start new business, take
risk and enjoy rewards and profits (Hinteregger, 2019). The entrepreneurs of Car wow
organisation are James Hind, Alexandra Margolis and David Santoro who are enough dedicated
and motivated to attain all organisational goals and objective in effective and efficient manner
and guide their employees to gat high work performance, productivity and contribution to

accomplish defined objectives as well. Entrepreneur are passionate for achieving desirable goals
and implement various new ideas to expand business. All visions and missions that are specific,
measurable, clear, reliable and attainable within defined period of time as well as develop
effective methods and process and allocate optimum resources at each level of organisation that
are required to complete task efficiently. Entrepreneurs have enough confidence on business
ideas and products that are produced to satisfy all customer needs and requirements (Lavhelani,
Omoruyi and Chinomona, 2018). There are number of essential characteristics such as effective
decision-making that help these entrepreneurs to get business opportunities effectively. These
skills and characteristics facilitate entrepreneurs to perform all defined organisational task and
function in effective manner.
Business start-up process
In order to established business number of steps and processes are followed by the entrepreneurs.
Car wow organisational entrepreneurs perform various activities and functions to establish
business such as first of all proper business research is conducted that provides all information
about current trends, market opportunities and customer requirements and respective competitors
and their strategies that are operating in same field as well. Research provides valuable outcomes
that facilitates business to gat sustainable competitive advantages. After gathering all relative
information business plan is developed that leads business to attain all desirable outcomes.
Effective business plan works as the roadmap that instruct Car wow organisation to perform all
functions in effective manner than entrepreneurs find appropriate financial sources to get finance
for business functions such as financial institutions, banks, venture capital and corporate
societies. After getting proper finance, location of business is decided where all resources and
materials are easily available. Entrepreneur decides proper business structure that help business
to gain all desirable objectives in effective manner, there are various organisational structure
such as partnership and limited company on the bases the business is registered (Nguyen and
Nguyen, 2021). After taking all these decisions legal formalities are done that protect business
from any external factor and make the business legal entity, all these functions are done through
government offices. When the organisation is registered a formal bank account is opened and
apply for licence process. After following all these steps entrepreneur is able to start new
business and functions to gain profit.

Business concept and competitive advantages:
Car wow organisation provides automotive products and other related products to their potential
customers as well as other businesses on whole slae bases. The organisation distributing number
of better-quality products that satisfies all needs and demands of customers. There are various
online modes and methods are utilised by the organisation to deliver their products and services
to potential customer. The main objective behind the establishment of organisation is fill the gap
in the market as well as make it easier for customers to choose new car. Competitive advantages
are described as the factor that provides various facilities to the respected organisation than its
relative competitors if it offers better quality products and services in comparatively low prices
(O’Reilly and Cunningham, 2017). By adopting different business strategies organisation
enhances sales as well as profit margin as compared to other competitors. Car wow implement
various effective strategies that facilitates business to manage cost structure, customer services,
branding and distribution network and quality products that help to make brand differentiated
than other competitors and maintain effective market positioning that ease the organisation to
take competitive advantages.
Innovation and technological advancements are some factors that are required in current
competitive environment in order to take sustainable competitive advantages. Car wow
organisation adopt number of technological aspects to complete all business functions in efficient
manner and to produce better quality product for their customers in order to retain them for long
period of time (Raa, 2021). As the Car wow company provides automotive products and services
to their customers, there are various advertisements and promotions are published through social
media channels to spread brand awareness. The respective organisation maintain effective
relation with customers through providing them after sale as well as other services.
Challenges of managing as well as running the SME and current development strategies
Small and medium sized enterprise faced number of problems and challenges to manage
as well as rum business efficiently so all organisational functions and activities are done in
smoothly. Challenges affect business performance and productivity as well. Starting business is a
big achievement for the respective entrepreneur but maintaining it in effective manner is the
biggest challenge fir them. There are various challenges are faced by the Car wow such as hiring
right candidate, developing potential customer base and building effective brand image as well.

Lack of proper marketing: Lack of marketing is the major problem which is faced by the
respective organisation. As small business are established with low investment so, they can-not
afford high marketing strategy to reach their products and services to potential customers
(Sánchez-Rodríguez, Martínez-Lorente and Hemsworth, 2019). There is lack of proper
knowledge of marketing strategies that affect business.
Getting and retaining customers: As customers are valuable assets of any organisation.
small business faces problem to cover wide potential customers and retain the existing one. Car
wow not publishing any promotions that enhances products awareness among customer that
affect its productivity as well as profitability.
Money and time management: Time and money management is the important factor that
affect business functions and activities. As Car wow has limited resources and lack of skilled
employees that affect the ability to manage time as well as resources in effective manner .
Apart from that various other challenges such as performance management, government
rules and regulations affect the business performance and profitability. All these challenges are
evaluated by the organisation and appropriate strategies are formulated in order to overcomes
these challenges in effective manner.
Growth and development strategies of small business:
There are various growth and development strategies that are adopted by the Car wow
organisation in order to ensure business growth to gain sustainable competitive advantages.
Various models, concepts and methods such as PESTLE analysis, Ansoff model and porter’s
generic model to develop effective strategies according to requirements. Some of growth and
development strategies are discussed below:
Market penetration: It is the most important development strategy that is related to
increasing market share of existing market through promoting products by publishing
advertisements, effective packaging and promotions (Schell, Hiepler and Moog, 2018). In this
strategy Car wow business offers its products at low prices than other competitors that provides
it competitive advantages.
Market development: Market development is related to the offering and promoting
products and services in new market place through various promotions. It facilitates the
respective organisation to cover wide potential customer of new market. Development of market
facilitates business to attain growth and development objectives.

Product expansion: Car wow expand its product line by adding new features according
to customer requirement. Respective organisation researches all current market trends than
implement all new features that help business to grow and develop in competitive market
environment (van Zyl, Henning and van der Poll, 2020).
Market segmentation: Segmentation is the effective growth and development strategy
that is sued by Car wow organisation in which the organisation to divide whole market into
various small groups according to their preferences, needs and characteristics and provide them
better quality products and services according to their requirements.
Government support schemes for small and medium scale business:
As small and medium enterprises provide huge employment and help economy growth and
development as well. Car wow business faces various challenges so, government develop
number of schemes that supports small businesses to attain all defined goals and objectives in
efficient manner. There are various financial assistance, training employees and research
opportunities are offered by the government to endure development of respective organisation
(Sharif, 2020). There are various economic development programmes are launched by the
government and various financial assistance are provide for development and improvement and
provide loan for business expansion.
Conclusion
As per the above report, it can be concluded that small and medium business are established with
low number of employees. There are various skills and characteristics of entrepreneur such as
innovation, leadership quality and effective decision making that helps in smooth running of
business. A defined process is used to by the entrepreneur to start business in effective manner.
In order to manage as well as run all organisational activities various challenges and problems
are faced by the small business. Effective strategies help business in development and gaining
sustainable competitive advantages (Siemen, and, 2018). Government launches various policies
and interventions that help business to overcome all challenged and facilitated business to grow
in competitive environment.
Recommendation
Designing growth policy for small and medium enterprises

From the above report, it is recommended that for efficient development of economy,
growth and development of SME is essential. There are number of policies and process are
formulated after conducting proper market research that facilitated the respective organisation to
gain various competitive advantages. Some strategies are business expansion, joint venture,
franchising, diversification and merger and acquisition. All these strategies facilitate the Car
wow company to expanding business and attain all desired growth and development goals and
objectives. Various new products are launched that are quite different from other competitors and
facilitated business to cover wide target market (Tladi and Kekwaletswe, 2018). Through
adopting various technologies and developing contractual agreement with other business such as
joint venture and merger and acquisition that help business to gain various competitive
advantages and ensures organisational growth and development.
Understanding about how to manage change issues in SME
In current business environment different internal and external aspects that influence the business
functions and performance of SME. There are regular changes are take place in these aspects
according to current requirements. Execution of these changes in respective organisation is not
easy task, Car wow develops various plans and effective strategies to handle these changes and
attain various competitive advantages than other competitors (Townsend, McDonald and
Cathcart, 2017). In order to manage these changes efficiently business must communicate all
these changes to their employees, prepare effective and efficient plans accordingly, implement
changes within organisation according to plans and evaluate the impacts of changes om
organisational performance.

REFERENCES
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