Guillaume Hebrard Case

What is happening in case?

Guillaume Hebrard started a company call Motrada which is a software internet service company that offers business-to-business remarketing on-line internet applications to the used car market in Europe. Hebrard recognized there was a need for this because he realized as a used car salesman, there was never enough or the specific inventory on-hand to meet his customer's needs. Furthermore, as a business and sales director of the company Citroen, he became aware of problems and inefficiencies within the used car market. Given that there was an overproduction of cars and new cars turned into used car faster and faster, he realized that all players in the used car market are looking for more efficient distribution channels for used cars. Hebrard wanted to make it possible for businesses and consumers to purchase used cars on-line through his remarketing on-line internet applications products and services. Therefore, Motrada Company was established to create thousands of adaptive platforms to offer a secure point of sale where authorized car dealers can buy from known sellers in a trustworthy environment.

Why is it happening?

Motrada has many opportunities to grow due to the following:"

* The business-to-business market for used car sales presented challenges because of the inability to establish a market price for used cars. Therefore, there was lack of profitability along with inefficient distribution channels to supply the market

* There is a worldwide over production of cars in which new cars turn into used cars at faster rates. Additionally, cars are of better quality therefore they last longer creating more used cars in the market. In 2006, the European market consisted of 32M cars which are a 2% growth from 2003. Thirty-five percent of these cars are being traded in the B2B market which is 5.09M.

* Internet technology was increasing its speed due to the introduction of broadband. In addition, more businesses and individual consumers had access to internet technology.

* What should be done?

In order for Motrada to capitalize on the expected growth, Guillaume Hebrard should do the following:

* Hire a business consulting firm to develop a business plan that addresses the questions such as is this venture feasible, where to begin, and will the market accept this idea? The business plan should entail how to attain the right people to develop the specific platforms needed meet the customer needs. The business plan should also include how to fund the venture. All people working to develop this model should be full-time employees and be fully committed to this venture

* Since the internet is currently used for exchanging information and not as a sales channel, Motrada needs to provide a vehicle