Mini-Case: Finding a Competitive Advantage Copreneurs Ed and Yolanda recently opened a vintage used car lot called Cherry Lane. They sell antique and collectible cars on consignment for the owners at a fee of 30 percent of the selling price. The price is further reduced by 10 percent if a particular car is not sold within the first 30 days. One of the first customers convinced Yolanda that this was the only fair thing to do, and in an effort to provide something for "the cost conscious buyer," she provided what she thought was excellent customer service and implemented the idea. Ed and Yolanda feel Cherry Lane has an ideal location. It is located adjacent to the city's baseball stadium, alongside the freeway in the center of all the other car dealerships. Although Cherry Lane has significant foot traffic, most people never make offers to buy. In an effort to increase sales, Ed and Yolanda are working on a new marketing strategy that they believe should be quite different from the "shotgun" approach they had been using over the last few months. (Shotgun marketing attempts to capture the attention of a very large demographic or a large varied group made up of multiple demographics) a)What is a competitive advantage? Does Cherry Lane have one? If so, what is it? (15 points) b) Considering the three basic small business strategies identified during the course (hint: cost leadership, differentiation and focus strategy), which one would work best for Cherry Lane? Why might that strategy be successful? (15 points)