Carsales.com

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

Introduction

This study on Carsales.com is part of our coverage of the largest 10,000 companies in the world. It is created and refreshed at a rapid pace to provide the most current content available.

For Premium members only, full access to this study on Carsales.com includes the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis, and a myriad of additional high value sections.

We identify potential new products and services, forecast future market trends, and predict synergies between Carsales.com and other organisations that are distinct from the analytical sections.

Company Description

Carsales.com is headquartered in Melbourne, Australia and was founded in 1997. Its main products and services are classified car and automotive listings, finance and insurance, vehicle reviews and car valuations. The company serves customers in Australia, New Zealand and South Africa.

Industry Overview

The primary industry Carsales.com operates in is the automotive retail industry which is estimated to be worth over $1 trillion USD annually. The industry employs over 4 million people worldwide, with the majority of employees based in the United States, Japan, China, and Germany. Carsales.com is a leading player in the industry, offering a range of services to customers including online sales, advertising, and finance.

Industry Classification

In terms of formal classification, Platform Executive has tagged Carsales.com as a business operating within the Telecoms industry.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Method and system for displaying images of a vehicle
Patent ID: US10375008B2
Date: 2020-07-21

Patent Title: Method and system for displaying images of a vehicle
Patent ID: US10373212B2
Date: 2020-07-21

Patent Title: Method and system for displaying images of a vehicle
Patent ID: US10371887B2
Date: 2020-07-14

Patent Title: System and method for providing online media
Patent ID: US10365087B2
Date: 2020-07-07

Patent Title: System and method for providing online media
Patent ID: US10363194B2
Date: 2020-07-07

Patent Title: Media library system and method
Patent ID: US10356917B2
Date: 2020-06-23

Patent Title: System and method for providing online media
Patent ID: US10356846B2
Date: 2020-06-23

Patent Title: System and method for providing online media
Patent ID: US10356845B2
Date: 2020-06-23

Patent Title: System and method for providing online media
Patent ID: US10356844B2
Date: 2020-06-23

Patent Title: System and method for providing online media
Patent ID: US10356843B2
Date: 2020-06-23

Major Products & Services

The main products and/or services commercialised by this business include the following:

New Cars
Used Cars
Private Seller Cars
Car Reviews
Car Finance
Car Insurance
Car Parts & Accessories
Caravan & Camper
Motorcycle & Scooter
Trucks & Commercial Vehicles
Boats & Jet Skis
Caravans & Motorhomes
Farming & Industrial Equipment
Classic & Unique Cars
Trailers & Equipment

Key Competitors

We have identified the following organisations as being key competitors:

Autotrader
Gumtree
CarAdvice
Redbook
Drive
Pickles
CarsGuide
CarSales Network
Manheim
Carsome

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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Customers: Individuals and businesses looking to buy or sell a car.

2. Dealers: Car dealerships that list their vehicles on the Carsales.com platform.

3. Manufacturers: Car manufacturers who advertise their products on the Carsales.com platform.

4. Investors: Those who have invested in Carsales.com and benefit from its success.

5. Employees: The individuals who work for Carsales.com and are responsible for its day-to-day operations.

6. Partners: Companies that collaborate with Carsales.com to provide services to its customers.

7. Suppliers: Companies that supply goods and services to Carsales.com.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like Carsales.com different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand Carsales.com and its position within the marketplace.

Carsales.com is a car buying and selling website that allows users to buy, sell, or trade cars. It provides a platform for users to find and buy cars from other users, and also offers a variety of services such as car detailing and car repair.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Targeted Advertising: Carsales.com has an extensive database that allows it to target specific groups of potential car buyers. This allows them to tailor their advertising campaigns to a more specific audience, and provide a higher return on investment.

Online Car Buying Platform: Carsales.com provides an online platform that allows buyers to search for cars in their area, compare prices and make informed decisions. Having this online platform gives them a competitive advantage over traditional dealerships as buyers can compare prices and find the best deal for their needs.

Automotive Industry Experience: Carsales.com has been in the automotive industry for over 20 years, so they have a wealth of experience and knowledge in this sector. This allows them to provide customers with high-quality advice and support when it comes to purchasing a car.

Reputation: Carsales.com has an excellent reputation in the automotive industry, which gives them a competitive advantage over other car sellers. People trust them to provide accurate information, as well as reliable service.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

Private Sellers
Dealers
Fleet and Leasing
Manufacturers
Exporters
Auctions
Classic and Prestige Car Sellers
Motorcycle Sellers
Boat, Caravan and RV Sellers
Commercial Vehicle Sellers

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Growing Preference for Electric Vehicles: The global automotive industry is moving towards electric vehicles as they are more fuel-efficient and environmentally friendly. This shift will likely have a major impact on Carsales.com going forward as they will need to adapt to accommodate buyers and sellers of electric vehicles.

Increasing Online Shopping: The rise of e-commerce has changed the way many people purchase items, including cars. Consumers are becoming more comfortable with the idea of buying a car online and are increasingly turning to online platforms for their car-buying needs. Carsales.com is well-positioned to capitalise on this trend.

Shared Mobility: The rise of ride-sharing and car-sharing services is also having an impact on the automotive industry. This is creating a new market for carsales.com as people look to purchase cars for these services.

Autonomous Vehicles: Autonomous vehicles are the future of the automotive industry and will have a major impact on carsales.com. Companies like Google and Tesla are leading the way in the development of self-driving cars, which will likely disrupt the traditional car-buying process and create new opportunities for carsales.com.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for Carsales.com include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

[eod_financials target="CAR.AU" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Car-buying and financing services: Carsales.com could create a car-buying and financing service to help customers find the best car for their budget and secure financing for their purchase.

Car insurance: Carsales.com could partner with an insurance provider to offer car insurance to their customers.

Car servicing and repair services: Carsales.com could partner with mechanics and other car-related services to offer customers access to car servicing and repairs.

Car rental services: Carsales.com could create a car rental service to help customers rent cars for short periods of time.

Car parts and accessories: Carsales.com could create a marketplace for customers to buy car parts and accessories.

Car customization services: Carsales.com could partner with custom car shops to offer customers the ability to customize their cars.

Car detailing services: Carsales.com could partner with car detailing companies to offer customers the ability to have their cars professionally detailed.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Car servicing and repair providers, such as Jiffy Lube and Midas.
2. Car dealerships, such as Ford, Toyota, and Honda.
3. Car parts suppliers, such as Autozone and Advance Auto Parts.
4. Automotive finance companies, such as CarFinance.com and RoadLoans.com.
5. Auto insurance providers, such as Geico and Allstate.
6. Car rental companies, such as Hertz and Enterprise.
7. Automotive magazines and websites, such as Motor Trend and Edmunds.com.
8. Auto detailing companies, such as DetailXPerts and Waxwerks.
9. Car-related technology companies, such as Tesla and Google.
10. Online automotive communities, such as CarGurus and PistonHeads.

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

Competitive rivalry
Supplier power
Buyer power
Threat of substitution
Threat of new entries

Porter's 5 forces is a framework for industry analysis and business strategy development. It draws upon industrial organisation (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market.

1. Threat of new entrants: LOW

2. Bargaining power of buyers: HIGH

3. Bargaining power of suppliers: LOW

4. Threat of substitutes: MEDIUM

5. Intensity of competitive rivalry: HIGH

Carsales.com scores WELL in relation to Porter's 5 forces. The company has a strong market position and faces little threat of new entrants. Additionally, buyers have HIGH bargaining power, while suppliers have LOW bargaining power. The intensity of competitive rivalry is high, but the company is well-positioned to compete.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: Carsales.com customers are consumers looking to buy or sell cars, as well as businesses looking to advertise their cars for sale.

Actors: The key actors in Carsales.com are the buyers and sellers, who interact with the website platform to purchase or advertise cars. Additionally, the team of employees at Carsales.com are also key actors in the process, as they manage the website and provide customer support.

Transformation process: The transformation process at Carsales.com is the process by which buyers and sellers are connected and able to purchase or sell cars. This process begins when buyers and sellers register on the website and create their accounts. They then use the website to search for cars and contact potential buyers or sellers. Finally, they are able to finalise their purchases or sales through the website.

World view: Carsales.com views itself as a platform that connects buyers and sellers, providing an efficient and convenient way to purchase or sell cars. The website aims to provide a secure and trusted environment for buyers and sellers to interact, as well as a comprehensive selection of cars for buyers to choose from.

Owners: The owners of Carsales.com are the shareholders of the company, which is listed on the Australian Stock Exchange.

Environmental constraints: Carsales.com must comply with all applicable laws and regulations when operating its business. Additionally, Carsales.com must also compete with other car sales websites, both in Australia and globally, in order to remain competitive.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Carsales.com business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

Strengths

Below is a list of the strengths we have identified for the business:

1. Carsales.com Limited is a leading online automotive classifieds business in Australia and New Zealand.

2. The company has a strong market position with over 60% market share in Australia.

3. Carsales.com Limited has a diversified revenue stream with revenue coming from both advertising and transactions.

4. The company has a strong balance sheet with low debt and healthy cash reserves.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Utilise data-driven segmentation: Carsales.com should leverage data-driven segmentation to better understand the needs of customers and refine their services accordingly. This can be done by collecting data on customer behaviours, preferences, and interests and using that data to identify customer segments.

2. Enhance customer experience: Carsales.com should focus on enhancing the customer experience to ensure customer loyalty and satisfaction. This could include introducing new features and services, such as a virtual showroom, interactive search tools, and a comprehensive vehicle comparison tool.

3. Expand into new markets: Carsales.com should explore new markets, such as other countries and regions, to increase its market share and to better serve customers. This could include introducing a range of new vehicles and services, such as finance and insurance, to meet the needs of different markets.

4. Invest in digital marketing: Carsales.com should invest in digital marketing to reach a wider audience and to increase brand visibility. This could include creating content for social media platforms, launching targeted advertising campaigns, and optimising its website for search engines.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Lack of international expansion: Carsales.com has only a limited presence outside of Australia, which limits its growth potential.

2. Lack of differentiation: Carsales.com is a largely undifferentiated marketplace, which makes it difficult to stand out in a competitive landscape.

3. Limited inventory: Carsales.com carries a limited inventory of cars, which may limit its appeal to car buyers.

4. High costs: Carsales.com's fees and commissions are relatively high, which may limit its appeal to sellers.

Threats

Below is a list of the threats we have identified for the business:

1. Competition: Carsales.com faces strong competition from traditional car dealerships, as well as other online car sales platforms such as Autotrader and EBay Motors. These competitors have established presence and customer loyalty, making it difficult for Carsales.com to gain market share.

2. Economic Uncertainty: The global economic climate is changing rapidly and this volatility can have a direct impact on car sales. If the economy weakens, car sales will decrease, which will lead to lower revenue for Carsales.com.

3. Technological Advancements: Technology is constantly changing, and Carsales.com must keep up with the times to remain competitive. New methods of online car sales, such as online auctions and peer-to-peer services, can put pressure on the profitability of Carsales.com.

4. Security: As an online platform, Carsales.com faces a myriad of security threats, including cyber-attacks, data breaches, and identity theft. Carsales.com must continuously monitor and protect its systems to ensure customer data is secure and private.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for Carsales.com. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Carsales.com, as well as areas where the company needs to improve its operations or strategy.

Company: Carsales.com is an Australian automotive classifieds website. It provides a digital platform for individuals and dealers to buy and sell new and used cars.

Collaborators: Carsales.com works with a variety of partners, including car manufacturers and other online automotive businesses. It also partners with companies in the finance, insurance, and automotive servicing industries.

Customers: Carsales.com caters primarily to individuals and car dealers, who use the website to advertise, buy, and sell cars.

Competitors: Carsales.com faces competition from other online automotive classifieds websites, such as Gumtree, Drive, and Autotrader.

Content: Carsales.com offers a range of content, including car reviews, automotive news, and lifestyle articles. The website also provides an online marketplace, where customers can search for and compare cars, as well as a range of tools and resources to help buyers and sellers make informed decisions.

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

Mission
Objectives
Strategy
Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Industry score:

A	The industry is amongst the most innovative; with the leading players all driving the sector forward. Example industry: PaaS
B	The industry and its leading players have a good track record of innovation; and can quickly react to change. Example industry: Pharmaceutical
C	Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate. Example industry: FMCG
D	Businesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption. Example industry: Retail Banking
E	The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change. Example industry: Publishing

Company score:

1	The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2	The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3	The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4	The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5	The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.

The team at Platform Executive has judged Carsales.com as having an innovation score of B3.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on Carsales.com forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

Corporate websites
Proprietary research databases
SEC Filings
Corporate press releases
News articles
Financial data API's
Product-matching algorithm

Further Information

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Disclaimer

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 25th April 2023

Industry Keywords

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