OPPapers.com Essay Index >> Business >> Autobytel
We have many free term papers and essays on Autobytel. We also have a wide variety of research papers and book reports available to you for free. You can browse our collection of term papers or use our search engine.
Autobytel. Introduction Autobytel was the first company to leverage the internet
in the car-buying market. Their revolutionary product ...
... Therefore, it is more clearly seen that the online environment has reintermediated
agents such as Microsoft Carpoint and www.autobytel.com rather than making ...
... the traveler. A similar service is available in the automobile market,
with AutoByTel (www.autobytel.com) being an example. While ...
... A used Corolla would probably run you about $ 6,500 in today's market. The prices
for these cars were estimated from AutoByTel.com and Autotrader.com prices. ...
... brand identification, economies of scale, international market - Intensity of Rivalry
among Competitors More online car industries, eg AutoByTel, AutoWeb, and ...
Submitted by terp81 on September 21, 2007
Category: Business
Words: 1264 | Pages: 6
Views: 130
Popularity Rank: 87,027
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Introduction
Autobytel was the first company to leverage the internet in the car-buying market. Their revolutionary product matched consumers with car dealers and offered consumer resources for buying, selling and owning a car. With no cost of goods sold, no procurement, no carrying or shipping costs and no inventory risks, this business model allowed Autobytel to capture 100% gross margin. The company's first mover advantage allowed them to set the bar for online car sales. Although Autobytel performed fairly well in the online car sales market, capturing 25% of all online car sales in 1999, the company suffered from high operating expenses (i.e. $3.7 million on internet marketing and advertising in Q2 of 1999) which exceeded their revenue. Looking towards future growth, Autobytel management wanted to expand their online service for car sales to all car-related services essentially owning the customer experience for cars.
Company
Autobytel's first mover position in the online car sales market had become the market standard in 1999. Since most state laws required consumers to purchase a new car through an authorize dealer, Autobytel established a way to match the consumers needs and reservation prices to high quality dealers who could deliver on those specifications. Their original product strategy emphasized price, convenience and no-haggle car purchases all efforts focused on the end customer of the car purchase. Their innovative product reduced the number of sales contacts and hours associated with a car purchase, resulting in bottom line pricing for the customer and a guaranteed sale for the dealer with lower associated operating costs (i.e. payroll and marketing). The company maintained a fairly unique dealership strategy compared to its competitors by awarding geographic monopoly to accredited dealers who maintained high quality in customer service. In addition, the company offered several product lines including...
You must Login to view the entire paper.
If you are not a member yet, Sign Up for free!