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 …
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…STRATEGIC ALTERNATIVES
*Create a website for the franchise showing the dealership’s current new and used care inventories as well as service, financing and so on.
*Sign on with several lead-generators and agree to pay referral fees.
*Lobby hard with legislation.
*Support manufacturers.
FINAL RECOMMENDATIONS
Dealerships should continue working at a pleasant buying experience and pay
close attention to delivering good after-the-sale service so that customers would be loyal
in returning for their next purchase.
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