The popularity of internet based automobile companies was an inevitable creation. With countless individuals having horror stories about car buying experiences, consumers needed a change and the internet was it. Consumers often complained about the price haggling, the rude salesmen, the high price of automobiles, the lack of available information, car makes and models from unbiased sources and just the enormous amount of time it took shopping around for the perfect car. The internet brought an end to all of this. Internet based automobile retailers and consumer services sites were able to bring all the information needed for car purchases to one central and accessible location. These sites also where able to provide consumers with low prices without the haggle, limit dealer/salesmen interaction to a minimum and reduce the time and effort associated with car buying. Some sites would even try to eliminate the dealership altogether by providing its own selection of automobiles from its own inventory.
These great benefits provided by the internet would serve as a direct threat to automobile dealers and franchises or an opportunity waiting to be exploited for those who master its possibilities. We will look at these opportunities and threats in the before mentioned External Analysis (Specific Environment).
External Analysis.
(Specific Environment).
Potential Entrants.
As previously stated the internet brought an influx of new internet based competitors into the automotive retail industry: lead generators, direct sellers, and hybrids. Well financed and backed by established institutions in many industries these companies were able to develop websites which provided searchable database with selections of thousands of automobiles located nationwide and some internationally of all make and models right at the finger tips of the consumer. These sites also provided technical information as well as consumer and professional critiques of various automobiles.
