Submitted by: Submitted by parent447
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Category: Business and Industry
Date Submitted: 11/05/2012 07:27 PM
Case Analysis: Autobytel.com
Founded in 1995, Autobytel was one of the first companies to enter the ecommerce space. The company’s goal was to deviate from the traditional car buying process. It’s mission is “to empower automotive consumers with the best available tools and information they need to make smart, well-informed vehicle purchasing and ownership decisions.” To that end, the company has built one of the most comprehensive online resources to facilitate the consumer’s car buying experience. In addition, the company has been very effective in forging strategic partnerships with various automotive dealers in many geographic locations. These tactics have allowed the company to position itself as one of the leaders in the automotive market. The company’s strengths center around three areas: (1) the customer experience, (2) the dealer experience, and (3) seizing opportunity in the marketplace. Below are broad points that summarize each of these:
The Customer Experience:
* By providing access to unconventional forms of information (i.e. invoice price, manufacturer incentives, etc.), Autobytel has shifted power from the car salesperson to the consumer.
* Successfully utilizing the power of the Internet allows customers to create a virtual model of their ideal car by searching a broad network of various makes and models, and then adding preferred features, all without ever setting foot in a dealership.
* Promoting a no-haggle, no-hassle price dramatically reduces both the stress and the intimidation of trying to purchase a new car.
The Dealer Experience:
* By successfully leveraging dealer relationships, the company has worked to build a brand revered in the industry for its positive reputation in overall dealer satisfaction.
* Successful, strategic use of the Internet allowed Autobytel to capture a large segment of prospective car buyers, connecting them to potential dealers and facilitating sales that otherwise...