Competition in the U.S. Auto Industry
In early 2000, the automotive retailing industry seemed on the front edge of fundamental change. For a number of years, there had been rumblings of dissatisfaction among vehicle buyers with their purchasing experiences at local franchised dealerships. Many customers felt price haggling and high pressure sales tactics distasteful or intimidating. Automakers were looking at ways to overhaul their franchised dealer networks to squeeze some of these distribution inefficiencies out of the industry value chain. But other hometown dealers were facing unprecedented competition from megaretailers, like, AutoNation buying services that so happen to threaten to reshape the role and function of franchised dealers. Meanwhile, manufacturers had launched Internet sites where vehicle buyers could get information; compare models and features, and be referred to nearby dealers for price quotes. That is when thousands of franchised dealers had joined the dealer networks of the direct sales and were providing the vehicles sold online. These developments reflected a growing understanding among both manufacturers and franchised dealers that the Internet had changed the dynamics of
amounted to an average of $209 per new vehicle sold and $217 per used vehicle sold. Franchised dealers relied heavily on advertising to attract the attention of people who were in the market for a new vehicle and especially to draw price-sensitive customers to their showrooms and lots. *Sign on with several lead-generators and agree to pay referral fees. National Automobile Dealers Association
Some topics in this essay:
Ford’s Model,
KEY ISSUES,
,
Microsoft’s CarPoint,
ANALYSIS Strengths,
Small-Town Dealers,
Greenlightcom Web,
CURRENT STRATEGY,
Strategies Franchised,
Hyundai Internet,
franchised dealers,
automotive retailing,
automobile dealers association,
price quotes,
vehicles sold,
price quote,
· dealer,
annual sales,
models styles,
national automobile,
dealer networks,
national automobile dealers,
people market vehicle,
draw price-sensitive customers,
attention people market,
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Approximate Word count = 1441
Approximate Pages = 6 (250 words per page double spaced)
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