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Título

Evaluating Operational Strategies in Car Dealerships: A Case Study of Franchised Dealership Strategy in Northeast Brazil

Palavras-chave

Operational Strategy Car Dealership Northeast Brazil

Autores

  • Valentino Clerici
    Escola Americana do Recife
  • Viviane Vasconcelos
  • Ana Lucia Fontes de Souza Vasconcelos
    UNIVERSIDADE FEDERAL DE PERNAMBUCO (UFPE)

Resumo

Introdução

This study explores how operational strategies and market adaptation impact car dealership success in Recife, Brazil. Existing global models are often designed for wealthier, developed markets. By focusing on a regional context with different economic realities, the research identifies which strategies are effective locally and offers practical guidance for dealerships, policymakers, and multinational brands operating in emerging economies.

Contexto Investigado

Given that the automotive sector is responsible for generating nearly 4% of the world's GDP, it is crucial for the world economy. To tackle a specific a regional study, the research takes place in Recife, a mid-sized city in northeast Brazil marked by economic inequality and high demand elasticity for cars. Unlike major markets, Recife presents distinc
challenges for dealerships, including lower income levels and limited infrastructure. This setting allows for the evaluation of how operational strategies perform in developing urban environments.

Diagnóstico da Situação-Problema

Most existing research on dealership strategies focuses mostly on developed markets; even when researchers studied underdeveloped markets, they often failed to deeply analyse inner regions of these markets, overlooking the unique economic and social dynamics of regions like Recife. Local dealerships face challenges such as high demand elasticity, limited infrastructure, and a middle-income consumer base, which hinder the direct application of global management models. Additionally, due to high artificial monopolization by caused by parent companies, strategy is partially obsolete.

Intervenção Proposta

The study adopted an exploratory sequential design, analyzing four unaudited franchised dealerships in Recife through qualitative interviews and quantitative surveys. It created original performance indices (SEI, CEI, MREI, ODPS, RDS) to measure sales, cost, marketing, and strategic efficiency. These tools helped reveal which internal practices drive competitiveness in a developing urban context and how dealership strategies align with market realities.

Resultados Obtidos

Findings revealed that fundamental strategies-such as tailored staff training, efficient inventory handling, dynamic pricing, and relationship-focused customer service-had a stronger impact on dealership performance than more complex or sustainability-driven initiatives. Dealerships that consistently prioritized operational basics outperformed peers across all key performance indicators and showed stronger strategic returns.

Contribuição Tecnológica-Social

The study introduces practical performance tools that enable dealership managers to make data-informed decisions specific to their operational scale and consumer base. Technologically, it contributes customized efficiency indices; socially, it stresses the importance of adapting strategies to local economic constraints. The findings guide both practitioners and policymakers in creating context-aware models for emerging markets.

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