Growth strategies for Czech car dealerships facing market disruptions: case study of Autosalon Klokočka

The COVID-19 pandemic has accelerated the ongoing transition in the global automobile market. Disruptions of the supply chain, rise of CASE topics, manufacturers’ meddling with distribution channels - all these factors contribute to the notion that the existing business model of car dealerships will not be sufficient in the next 3 to 5 years. We provide compelling evidence of the ongoing transition and its complexity in the global and Czech market, where the industry accounts for over a tenth of the GDP. A case of a local medium-sized car dealership is then built by assessing the drivers of change on the supply and demand sides of the market and suggesting growth options for the dealership, including expanding its service portfolio to other types of mobility, electrification, and charging stations, and joining the agency model. The study results contribute to scarce academic research on the topic and provide holistic guidance on how a dealership can remain relevant in the new realities.