Supply_Chain

The learning team's objective in this assignment was to compare and contrast between three of the largest German automobile websites. At first glance, one might assume there won't be much differentiation amongst German automobile brands. Thus, the aspiration of the team is to show how they differ in the e-business model. The car brands that were selected for this focus group were BMW, Porsche, and Audi. After investigating each company's website the group analyzed website navigation and evaluated aesthetics to determine which website has the most shock and awe. The next goal was to describe the supply chain of the website and to determine how it works in conjunction with brick-and-mortar locations. In addition, the team evaluated each of the company’s marketing tools used on the three websites to determine which offered the best customer service. Finally, the analysis describes legal, ethical and regulatory obstacles that the German automobile e-businesses face. Look and Feel Audiusa.com, BMWusa.com, Porsche.com The 2008 BMW North America site boasts simplicity, functionality and style. The website is a strong representation of how the organization perceives its cars. BMWusa.com not only invites customers in to view the fleet of vehicles, but also provides the customer with history, information on every aspect of automotive transportation, history and a chance to meet other BMW owners by use of a registry. As users navigate to the BMW site they will experience a jolt of refinement as the welcome page loads. The user is greeted with an easy to read and access menu bar and white background, and a picture of the 2008 1-Series slides in. The 1-Series is the latest addition to the BMW family of automobiles the placement of the vehicle on the front page is a wise marketing decision. At this juncture the user can select any one of the lines of vehicles using the top menu bar. This is a similar concept amongst the three auto websites all of the available car models are located on the homepage. The user can also select from other options including Certified Pre-Owned, Owners, experience and Uniquely BMW. Of the three manufacturers Audi employs the most complex and visually stunning business to consumer website. Right from the start the user is intrigued with the latest flash technology highlighting three popular marketing campaigns for the A5 model. The first is Audi’s popular A5 commercial, then the A5 experience, and finally the truth in engineering campaign. The website has additional media in relation to the company’s latest promotions such as the upcoming Ironman movie. For the less than technical, the site also contains traditional navigation to find general information about company history, financing of vehicles, even build an Audi to the user’s specifications. The build the car feature is universal across the three German manufactures. The Audi website also allows the customer to search dealers across the country for inventory. This is an added feature of convenience, when a potential customer is searching for a car that is unique. Porsche’s website is extremely chiseled and simplistic it leaves the user with a feeling of uniform elegance. The four Porsche models have equal exposure on the homepage. The user has the option of following links leading to additional vehicle information, or they can deviate and learn about Porsche’s history. Also like the other three websites potential customers can navigate to learn about financing options. Porsche is currently running a television marketing campaign for the Cayenne. The message delivered in the message is centered on the distinctive sound a Porsche’s engine and exhaust. Porches catchy tagline is “The Bloodlines are Unmistakable.” The website does have audio and visual demonstrations available, requiring the user to download Adobe flash player 9. When following the media links, the audio and video demonstrations consisted of a narrator discussing the advantages of options such as electronic fuel injection, full disc brakes, tiptronic transmission, and other performance data that tries to compensate for the hefty price tag. However, the website disappointed and failed to coincide with the adventurous television commercials. Porsche should consider the use of integrated marketing to deliver one clear message to the consumer. Other features of the website included links to pre-owned Porsches, upcoming events, racing, service locations, a history of Porsche, and entertainment. Now, that the similarities are evidenced and highlighted, it’s time to differentiate between Porsche, BMW and Audi. First, of the three German auto manufacturers BMW is a unique in that it offers the title-holder the option of joining an online owner network. By joining the network the owner will be able to control their BMW credit account, have access to owner manuals, advance knowledge of special offers, and the right to use exclusive ownership materials. This network is designed to provide a sense of pride and privilege to those who own and operate a BMW. The next difference is the use of trademarks. “A trademark is a distinctive mark, device, motto, or implement that a company affixes to the goods it produces for identification purposes” (Schnieder, 2004). All three of these car manufacturers are German, and for marketing purposes especially in e-business, need to show distinction. Besides, all three are considered high-end therefore, the level of distinction is more critical to an e-business campaign. Another way the brands show their uniqueness is thru e-commerce. The e-commerce portion of each competitor’s website allows the consumer the opportunity to purchase novelty items and accessories for their car. This type of marketing, some refer to as a loss leader. The purpose is to generate interest in the brand with the overall goal of selling a vehicle. The slogan of BMW is “The Ultimate Driving Machine.” Through use of simplicity, and the expansive information on the nine models they offer. The e-business website allows the visitor to look into the life of a BMW owner. After this glimpse, the visitor will be further encouraged to acquire a BMW vehicle. The BMW North America website is a strong indication of the organization’s product. Supply Chain An automobile manufacturer’s greatest supply challenge is at the end of the model year. This is when the supplier must address the amount of unsold vehicles. Unsold vehicles have to be sold at a discount which can translate to losses for the manufacturer. The automobile manufacturer is constantly attempting to find solutions to this looming issue. Marketing specialists and sales teams need to use innovation in their thought process. The tools these specialists use are vigorous market studies, sales reports and endless trend analysis. At the end of the day, the engineer’s solution is to give the consumer what they want. BMW’s supply chain solution allows customers to fully customize a vehicle that is about to be purchased. Through this practice, the amount of production cars is dramatically reduced. Therefore, at the end of the year the amount of unsold inventory is reduced. The amount of vehicles sold will not suffer, and consumers have the ultimate experience of modifying the car to their liking. Modification is incorporated into the website in such a way that the consumer can view the vehicle as it is being “built” or rather “put together”. Every option, every color, every package and every accessory is included in the website customization. Almost all vehicle manufacturers have experimented with customer customization, and most were not able to affect the supply chain. The different approach BMW has taken is comparable to a “made to order method.” The vehicle that is chosen by the consumer is saved on the website under a profile created by the consumer. Then the Brick and Mortar store front downloads the wants and desires of the consumer to match their needs with a car. The brick and mortar contacts the consumer for a consultation, the car is then ordered. From that point, the car is built no longer than 6 days after the purchase has been made. The vehicle is then completed by the 8th day. “This degree of coordination makes it possible to consistently build a vehicle within two days” (Manfred Stoeger, vice president of logistics and information technology, 2007). Two days is then reserved for shipping. Because of total customization capability, supply chain is managed to the point where every vehicle made is customized to a customer’s specifications. Creating vehicles as they are sold greatly benefits the consumer and limits the amount of overhead, another challenge remains: Keeping the machines that manufacture the cars, as advanced as possible in order to facilitate each individual car or SUV. BMW had to completely upgrade the robotic systems in order to accommodate the individual needs of each customer. In the future as customers demand even more customization, the manufacturer will need to employ the latest technology in order to meet the demand. For BMW the vehicle is not the only concern and is not where the final challenge lies. BMW operates a business to business website and inventory management system to ensure that that their manufacturing process remains efficient. Having the parts readily available for assembly is more difficult than deciphering how the vehicle is going to be manufactured. BMW’s solution to the issue of parts inventory is to make each part as universal as possible. BMW does an excellent job of personalizing each vehicle while keeping the parts that make up the vehicle universal. For example, every 3-series has the same size and style of radio. Only one radio is offered, however the amount of accessories and options for that radio range from Satellite Radio to iPod adapters. Since BMW has to be cautious as to not overstock radios, careful market studies are compiled daily for suppliers. Overstock is inevitable however, overstock of products such as radios, wheels and even simple bolts can often be held as warranty replacement units or collision repair. Since the customization has been such a success, BMW can afford to manufacture less inventory vehicles and can focus on creating vehicles as they are sold. This practice has elevated BMW to a premier vehicle manufacture and a focal point in supply chain management.