Over the past five years, we have pursued a successful growth strategy under Ignite, one which has seen the Group grow from 26 to 36 markets and add new OEM partners to its Distribution portfolio. Our opportunity moving forward is to make our operating model genuinely scalable. Scalable in our core business of automotive Distribution. Scalable to capture more of the vehicle lifecycle.
We must accelerate and evolve.
To realise these opportunities, we have identified two strategic priorities, supported by three enabling actions.
PRIORITY #1: TRANSFORM OUR CORE BUSINESS THROUGH DISTRIBUTION AND RETAIL EXCELLENCE
The urgent need to change our route to market model is well understood and already underway. We need to accelerate the speed and scale of our ambition to ensure we offer our OEM partners the omni-channel solution that serves the customer more effectively than they or a competitor can. The only way to do this is through a step-change in our digital capabilities, use of data and through the standardisation and relentless optimisation of our core processes.
This will provide the opportunity to expand our market presence and broaden our OEM partnerships.
PRIORITY #2: EXPAND INTO NEW AND ADJACENT VEHICLE LIFECYCLE SERVICES
The rise of digital business models in adjacent areas presents an opportunity for Inchcape to capture elements of the vehicle value chain currently under-exploited or not addressed. Digitalisation is removing barriers to entry and enabling competitors to create and scale businesses quickly. Inchcape’s local market knowledge, access to digital capability and exposure to proven disruptive models in existing markets means that Inchcape has the right to play in these adjacencies, creating new revenue streams.
Enabler #1: Develop the People, Culture, and Capabilities we need to build on our core strengths of executional excellence and automotive knowledge and blend these with the digital, technological and process capabilities needed to succeed in the future.
Enabler #2: Use Digital, Data and Analytics to create the consumer experience relevant to each market based on data driven insights; make the business critical decisions that support efficient and effective execution using data; and ensure all of this data is totally secure.
Enabler #3: Develop Efficient Scale Operations to standardise our back office and core processes and apply ‘one best way’ to make us more efficient and more successful.