Managerial Economics

Case study 6
Unhaggle

1.
The possibility existed for Unhaggle to make money off exclusively by
charging money to dealerships as a participation fee. Vendors would essentially
be paying a charge to gain access to Unhaggle's users, which would probably
allow charged dealers to grab business from uncharged dealers. Additionally,
since Unhaggle would have significant influence over selecting the dealers,
dealerships would have more incentive to interact with clients and offer superior
service because they may be removed at any time.

Charging the dealerships for participation, however, might be dangerous, at

least until Unhaggle attains good success, making it possible for it to provide
dealers consistent and sizable sales volumes. A more widened network would
also raise the possibility of group collaboration. Theoretically, less competition
might result in higher consumer prices. The Unhaggle team believed that the
risk was low because, in most cases, four or five bids were adequate to generate
enough competition to produce competitive bids.

2.
Dealers participating with unhaggle were saving plenty of amount on sales
commission. These dealers were getting customers from a different
geographical location as unhaggle viewed their dealerships all over the country.
Any customer could anytime go to unhaggle website and view the dealerships.
Any dealership offering them a good best fit price, they could use that dealer to
purchase their car.
Dealers were saving both time and money as unhaggle had the genuine leads to
give to the dealership. Unhaggle has customers who had to pay for unhaggle for
viewing the dealerships, so it had serious and genuine leads. Dealership could
utilise this and save a lot of time and money and would also boost their sales.
Unhaggle developed many opportunities to the dealers as they could operate
with a set of customers who they would have never dealt with because of their
location, surrounding, etc. they could also compete with their competitors from
a different locality.
Dealers would lower the price of their cars in contrast to grab more sales
looking at their competition. Unhaggle created more power in the hands of the
buyers.

Mohammed Yaseen Qureshi

PES1202202920
MBA ‘C’ Section