Previously we looked at the SWOT Analysis of Tata Motors, a leading global automobile manufacturing company. In this case study, we will analyse the SWOT Analysis of Cars24.
Cars24 is one of India’s most popular car apps for buying and selling used cars. It makes buying and selling a car simple, fair, and quick. Cars24 has made it much easier to sell your used car on the internet. The Gurugram-based startup has found a solution to a problem that most people have overlooked.
Cars24 has profited from its marketing activities as a result of its market position. Marketing evolves in response to changing societal preferences. Attend our Free MasterClass on Digital Marketing, taught by IIDE’s Founder and CEO, Karan Shah, if you want to stay current with today’s effective marketing.
Let’s start with Cars24’ history, founding, finances, services, and market competitors in this SWOT Analysis of Cars24.
(The Minds Behind Cars24, Source: StartupTalky)
Cars24 is the largest automotive technology company in the world. In 2015, Cars24 was founded by Vikram Chopra, Mehul Agrawal, Gajendra Jangid and Ruchit Agarwal as an e-platform to buy and sell used cars. Cars24 is a next-generation e-commerce platform for used automobiles (cars and bikes). It is a used car marketplace that is based in Gurugram, Haryana, India. Cars24 can be thought of as a car-related eBay. It is so simple, but it solves every problem that the customer encounters while purchasing.
|Founder||Vikram Chopra, Mehul Agrawal, Gajendra Jangid & Ruchit Agarwal|
|Origin||Gurugram, Haryana, India|
|No. of Employees||4,317+|
|Market Cap||$ 27.7 Billion (2021)|
|Annual Revenue||$ 220 Million (2019)|
|Net Income/ Profit||N/A|
Services by Cars24
- Car sales
- Resale Paperwork
Competitors of Cars24
Now that we got to know about the company’s function and their vast business globally, now let’s dig into the SWOT analysis of Cars24.
SWOT Analysis of Cars24
SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis is a famous method that is used to evaluate a company’s position and helps them in developing strategic planning. SWOT Analysis of Cars24 helps the company in finding out internal and external factors and also helps them in looking for prospects for the company.
to better understand the SWOT analysis of Cars24, refer to the infographics below:
So let us first start by looking at the strengths of Cars24 from the SWOT analysis of Cars24.
Strengths of Cars24
An organization’s capabilities that give it an advantage in increasing and capturing its market share, attracting more customers, and maximizing profits are referred to as its strengths. Following are Cars24’s strengths:
- Online Business: Cars24 provides online services such as online buying and online selling second-hand cars. This kind of business can be easily adaptable in the variable market. The business always has challenges to conquer. For example, in the age of the pandemic, online businesses take huge advantages because their development is not disrupted. Cars24 with an online business still makes a profit and has engagements with their customers that make sure that in the recovered economy age, Cars24 will predominate over the left businesses.
- Simple Process: They have simplified the process of providing services. If you are confused with a wide range of selling-provided cars and you do not have enough time to check every single store and car, Cars24 will be able to send suitable cars to your home with just some simple steps even when you do not get off your couch.
- Financial Services: Financial issues are always taken into consideration when customers have the intention to buy a car. Customers are afraid of complex transparency processes, so Cars24 provides their customers with a 100% digitized process to complete transparency. Besides, if customers do not have enough money to pay for their favourite cars at once, they can pay for them in monthly instalments with a low-interest rate.
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- A Vast System: With a vast network of channel partners across the country, Cars24 can easily find the cars customers want and also if customers are bored with face-to-face negotiating 20 or 30 times with customers to sell their old cars, Cars24 can help you to sell in just a blink of an eye. A vast network also helps Cars24 stand a good chance to have access to an abundant source of potential customers.
- Experienced Staff: As a result of the fact that Cars24 has a culture of trust and cooperation, their employees and partners play a pivotal role in their system. Cars24 invests to upgrade their members’ professional qualifications to make sure their customers are served with the best services. Besides, Cars24 also takes care of members’ personal lives.
- Great Fund: With great capital, Cars24’s customers can be guaranteed for their selling cars. Cars24 is a private limited company. Cars24’s share capital is INR 7.00 cr and the total paid-up capital is INR 5.10 cr.
Weaknesses of Cars24
Whenever a company is recognized with its strengths, there are always going to be some weaknesses as well. Let’s check them out.
- Limited Market: Cars24 mainly focused on India. It has branches in more than 100 cities. According to research, the pre-owned car market is so active. Cars24 should have branches in other countries.
- Difference Between Online Valuation & Post Inspection Price: Cars24 buys and sells cars online, their customers can not have an inspection on their cars before buying, they can only have information which is provided by Cars24 via their website, so customers definitely will have wrong information about the products.
- Negative Feedback From Customers: When it comes to product rating, there are 60% rated 1 start. Most customers are uncomfortable with the way Cars24 evaluates cars and gives their customers prices. It is low from customers’ expectations. Besides, Cars24’s are also unsatisfactory with the services which are provided. It is high time for Cars24 to run a campaign to improve customers’ experience.
- Seasonal Business: Cars24 does not have substantial profit and is often idle during non-season.
Opportunities for Cars24
Factors also have an impact known as opportunities and threats for the business. Let’s discuss some opportunities:
- Trend: People now have the intention to buy pre-owned cars. There are so many reasons why they do that, they do not have to pay some kind of taxes, expenses are less, the quality of secondhand cars has been improved, and so on. Besides, according to research, most people in the world buy a secondhand car with 67% at second-hand stores.
- A Big Source of Old Cars: The number of old cars is increasing. To comply with environmental law, in some countries, they will have to leave cars which are still in good condition. Businesses can make full use of it by organizing car resale segments.
- Developed Transportation: Nowadays, it is easier for people to bring a car from one country to another. With a source of cheap cars, a business can make a great fortune if businesses know how to manage everything.
- Pandemic: In the age of pandemic, people may not be able to go to the physical store to inspect cars or have face-to-face negotiations with customers to sell their cars. In this situation, Cars24 will predominate the left. With an online store, Cars24 can keep functioning.
Threats to Cars24
When there are opportunities, there are also threats to the company. Let’s learn more about them and see some upcoming threats to the company from various other industries.
- Competitors: Pre-owned car market is an attractive market. So many people now have noticed how potential this environment is. With the help of technology, new competitors can easily be involved in this field. Besides, expenses to change business are low.
- Lack of Trust: The fact that so many people are uncomfortable with the way Cars24 inspect and give a price. And as a result, Cars24 has a lot of bad feedback from customers. This will be a chance for Cars24’s competitors to take advantage and leave Cars24 behind.
- Environmental Policies: In some countries, there are strict standards for cars before they have them imported into their country. Cars24 will have to invest a great amount of money if they want to have cars that can meet environmental requirements.
- Condition of Cars: The condition of an old car is not guaranteed which all time hinders a customer from purchasing a used car from Cars24.
This ends our comprehensive SWOT analysis of Cars24. Let us conclude our learning below.
Cars24 does not end with online bidding, but rather begins there. By making the entire transaction end-to-end, the company works to remove every stone, twig, and rock that stands in the way of a customer’s buying and selling process.
On a high level, this is how Cars24 works. Essentially, it eliminates all ambiguity between the buyer and seller and provides a flawless customer experience from start to finish. It’s also a lucrative business.
In today’s world, every business has its presence online. With increasing competition, it is very important to make your mark and defend yourself in the market. So, being well versed in this field is a must for marketing enthusiasts. If you are interested in learning more about digital marketing and want to upskill then don’t hesitate to check out our IIDE’s 3 Month Advanced Online Digital Marketing Course.
We hope this blog on the SWOT analysis of Cars24 has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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