Competition_in_the_U.S._Auto_Industry

Competition in the U.S. Auto Industry INTRODUCTION 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 automotive retailing. CURRENT STRATEGY · Online competition of dot-com companies -Microsoft’s CarPoint -CarPrices.com -CarOrder.com -Autobytel.com -Car.com -DriveOff.com -CarsDirect.com -Greenlight.com -StoneAge.com · Remain price competitive · Dealer pricing of new vehicles · The service departments · National Automobile Dealers Association (NADA) · Automobile Buyer Demographics · Block Manufacturer-owned dealerships · E-Commerce strategies of vehicle manufacturers INTERNAL ANALYSIS Strengths · Cars are lasting dealers, sales, new, vehicle, vehicles, franchised, price, million, online, dealerships, percent, models, internet, customers, billion, states, prices, out, dealer, advertising, 1999, units, united, sites, service, market, sold, shoppers, provided, per, over, number, model, manufacturers, automotive, automobile, attention, various, styles, selling, sellers, retailing, quote, people, order, new-car, nada, lots, lead, information, industry