The future of dealerships

: the case of Grupo Salvador Caetano

Abstract

The automotive industry is undergoing profound transformation as traditional dealership models are increasingly challenged by new models, such as Direct-to-Consumer. This case explores how Grupo Salvador Caetano navigates this transition while operating under three distinct sales models, namely BMW under the traditional dealership model, MINI under an agency model, and Hyundai under a vertically integrated model. The study applies frameworks such as Resource-Based View (VRIO), Dynamic Capabilities, Core Capabilities/Rigidities and Strategic Reponses to Crisis, to analyze how organizational resources and routines influence adaptation. The current study applies as methodology four structured interviews with managers from Grupo Salvador Caetano across operations, strategy, and marketing/customer experience, as primary data, and literature on the industry, as secondary data. Findings highlight the trade-offs of each model. BMW’s traditional setup ensures autonomy and stability, MINI’s agency model reduces stock risk but limits margins and increases complexity and Hyundai’s verticalization provides efficiency, scalability, and integration across systems. Additionally, it is possible to understand that the Agency model shifts the power and decision making towards the automotive manufacturers, while vertical integration allows dealers to preserve their influence in the business. In the Portuguese context, the digital adoption falls behind the European average, and dealerships remain crucial for customer validation and support. Grupo Salvador Caetano’s case illustrates both the risks of organizational rigidities and the importance of dynamic capabilities to adapt across models. The case study concludes that hybrid approaches seem to offer the strongest balance between efficiency, scalability, and customer-centricity in the Portuguese context.

Date of Award	17 Oct 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Reis (Supervisor)