Car retailing is an increasing challenge with the steady decline in the size of dealer networks. Those that continue to operate are looking at ways of improving profitability. The internet has suffered from difficulties in this sector, as evidenced by the departure of companies such as Autoquake and Tesco Cars.
To compare the offline and online sales of Cars consideration of the potential reach of consumers is required, looking at the growth of the internet and potential customer base. Internet usage has grown from 16 million users in 1995 to 3,035 million users in 2014.
The use of Smart Phones for web search is growing at an immense rate. In countries such as Africa where Internet coverage is sparse, data usage is being pushed by organisations such as Huawei and their $25 mobile phone campaign. This shift will mean that smartphone technology will be the platform of the future in testing, purchasing, and servicing cars.
Table of Contents
1. Introduction
2. Description & Comparison of offline and online retail environments for cars
2.1 Description
2.1.1. Supply Chain for Offline and Online Environment for Cars
2.1.2. Examples of Online Automotive Organisations
2.1.3. Re-intermediation
2.1.4. Quasi Online and Offline
2.1.5. Traditional Bricks and Mortar Dealerships
2.2. Comparison
2.2.1. Product and Service Innovation
2.2.2 Technology
2.2.3. Social and Behavioural issues
3. Analysis of value creation in e-business
3.1 Amit & Zott’s Value Creation Model for Cars
4. Recommendations for three significant omprovements
4.1 Improvement Consumer Use Online Purchasing 1
4.2 Improvement Consumer Use Online Purchasing 2
4.3 Improvement Consumer Use Online Purchasing 3
5. Conclusion
Objectives and Key Themes
The research examines the shifting landscape of automotive retail by comparing traditional offline dealership models with emerging online e-business environments. It aims to determine how Internet-based strategies and digital tools impact consumer behavior, value creation, and supply chain management in the high-ticket car market.
- The evolution of online versus offline supply chain management.
- Application of the Amit & Zott value creation model to online automotive platforms.
- The role of psychological motivators and social media in digital car purchasing.
- Technological advancements, including automated manufacturing and virtual showrooms.
- Strategies for future-proofing automotive retail through digital integration.
Excerpt from the Book
2.1.5. Traditional Bricks and Mortar Dealerships
Traditional dealerships are also using the Internet. Design of sites is for information provision rather than direct selling. Classified services have also transferred to online services via sites such as www.autotrader.com (Molesworth M, 2002).
However, a number of people are still offline who either have no internet provision or consider the security and privacy issues as an inhibiting factor.
Ironically most consumers believe that if there is no online presence in the form of a website then the business is not real. Many traditional bricks and mortar car retailers are discovering that what has worked for so long offline does not work online.
For example, the Audi City dealership in London is a front leader of online trends. This is the smallest Audi dealership in the UK displaying only a few cars; however it has the highest footfall. “It is a digital store, provides a brand experience and you have an unlimited way of configuring your car...so as you click, it is live in front of you and it is very easy to go 'over budget'...and very different from going through a brochure and looking at physical cars” (Leggett., 2013).
Summary of Chapters
1. Introduction: Outlines the global growth of Internet shopping and identifies the automotive sector's struggle to adapt to digital retail transitions.
2. Description & Comparison of offline and online retail environments for cars: Evaluates supply chain differences, technological integration, and social factors affecting consumer transitions from physical showrooms to digital platforms.
3. Analysis of value creation in e-business: Applies the Amit & Zott framework to automotive platforms like Autobytel.com to illustrate how connectivity creates market value.
4. Recommendations for three significant omprovements: Proposes future-oriented enhancements, including virtual test drives, 3D printing of vehicles, and automated, synchronized after-sales service.
5. Conclusion: Summarizes the psychological drivers of digital car buying and asserts that fully automated online retail is the inevitable future of the industry.
Keywords
Online Retailing, Automotive Industry, E-business, Supply Chain Management, Amit & Zott, Digital Transformation, Value Creation, Consumer Behavior, Virtual Showrooms, Re-intermediation, Autobytel, Tesla, Bricks and Clicks, Innovation, Car Buying Experience.
Frequently Asked Questions
What is the core focus of this research?
This work examines the transition of the automotive retail sector from traditional physical dealerships to online platforms, analyzing how digital integration changes the car-buying experience.
What are the primary themes discussed in the document?
The document covers supply chain management, value creation models, the influence of social media on purchasing decisions, and technological innovations in car retailing.
What is the main objective of the study?
The goal is to compare offline and online retail environments to understand how retailers can improve profitability and consumer reach in an increasingly digital global market.
Which scientific methodology is utilized?
The research employs a descriptive and analytical approach, utilizing established economic and business frameworks such as the Amit & Zott Value Creation Model to evaluate automotive e-business practices.
What topics are covered in the main body?
The main body details supply chain differences, the impact of virtual tools, social and behavioral influences on consumers, and case studies of innovative automotive organizations like Tesla and Audi City.
How would you characterize this work using keywords?
Key terms include automotive e-business, digital transformation, supply chain management, value creation, consumer behavior, and virtual retail strategies.
How does the "bullwhip effect" relate to the automotive supply chain?
The document explains that the bullwhip effect occurs due to incorrect forecasting and distorted information flow; it argues that real-time online systems help mitigate this inefficiency.
What role does the "Innovation Resistance Model" play in the analysis?
It is used to map consumer reactions to new technologies, helping to explain why certain innovative digital retail environments face resistance in the automotive sector.
- Citar trabajo
- Irene Anne McLaughlin (Autor), 2015, Description and comparison of offline and online retail environments for cars, Múnich, GRIN Verlag, https://www.grin.com/document/336019
