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Autosalon KlokoÄka: Seeking Directions for Growth
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Autosalon KlokoÄka Holding s.r.o. (Autosalon KlokoÄka), a Czech Republic-based car dealership, needed to change its business ways. A family-owned car dealership, the company was founded in Prague in 1988 by Jan KlokoÄka. In the last thirty years, the company had grown into one of the largest authorized car dealers in the Czech Republic by providing a comprehensive range of services to car owners. But the automobile industry had been among the most severely affected by the COVID-19 pandemic. As automotive companies braced for a revival, they had to be prepared to undergo significant modifications to alter how they operated and generated value for consumers. Despite its continuous expansion over thirty years, Autosalon KlokoÄka had been experiencing substantial slowdown and financial losses. In 2020, the company recorded a significantly lower revenue than in the previous years. By early 2022, it was still unclear how long the aftermath of the COVID-19 pandemic would last and how changes in customer behaviour and capabilities, supply chains, channels, original equipment manufacturer strategic choices, and other crucial factors would affect Autosalon KlokoÄka. As the company found its financial position vulnerable, Jan KlokoÄka needed to determine how to mitigate negative consequences and create growth opportunities. How could the firm adapt its existing business model to improve profits in the next three to five years?