Big Drive Auto

Recommendations for Non-price Barriers to Entry

Knowledge of the auto industry will afford Big Drive Auto a suitable assessment of

non-price barriers to entry. As a monopolistic entrant, Big Drive Auto can accommodate their target market with distinctive services, apart from their competitions. The four (4) characteristics of a monopolistic competition are:

There are many firms with differentiated products

There are narrow limits of control over price

Relative easy entry and exit from industry

Non-price competition consist of advertising, trademarks & brand names

Based on the four characteristics of a monopolistic described above, Team B presents

recommendations to Big Drive Auto that will increase the clientele and profit margin.

Big Drive Auto is a multistate dealer of several manufacturers’ cars and trucks. The dealer sells the vehicles, services the vehicles, sells parts for repair, and conducts a significant business in motor oil, coolant, and replacement tires (University of Phoenix, 2010).

Products/Services

Motor oil, tires, coolant are recyclable items and could be harmful to the environment if not disposed of properly. Big Drive Auto can promote environmental awareness by offering free oil changes when a customer brings in six (6) empty motor oil or coolant containers. The dealer can also offer discounts on used batteries and other products that contains hazardous chemicals.

Other areas of opportunity to create non-price barriers to entry is to offer around the clock free towing services to the customer, and if the customer is in need of transportation, Big Drive Auto can collaborate with a rental car company and offer discounts to their customers a discounted price on rental cars.

Big Drive Auto can offer e-auto services for customers to track the progress of their auto repairs.

Advertising

Another source of opportunity to boost services and profit is with advertising. Big Drive

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