Saturday, September 06, 2003
STRATEGY: Going to war with your channel should be a last resort
Auto Manufactures finally have reversed course in their attempt at internet disintermediation of the car dealer network. Friday’s Seattle Times reported that instead of trying to cut dealers out, automakers now are embracing dealers to capture net savvy customers.
Why the u-turn on channel strategy away from direct internet sales? Unlike travel agencies, car dealers remain a critical part of the auto purchase process. Although despised by consumers, car dealers still provide test drives, financing, inventory, and after sales service.
Conflict is caused by not understanding the channel life cycle. We use this model frequently at Channel Ventures to analyze the impact on proposed channel programs and strategies.
Understand where the power in your channel lies before you try to compete with it head on.
Scott@ChannelVentures.com
Auto Manufactures finally have reversed course in their attempt at internet disintermediation of the car dealer network. Friday’s Seattle Times reported that instead of trying to cut dealers out, automakers now are embracing dealers to capture net savvy customers.
Why the u-turn on channel strategy away from direct internet sales? Unlike travel agencies, car dealers remain a critical part of the auto purchase process. Although despised by consumers, car dealers still provide test drives, financing, inventory, and after sales service.
Conflict is caused by not understanding the channel life cycle. We use this model frequently at Channel Ventures to analyze the impact on proposed channel programs and strategies.
Understand where the power in your channel lies before you try to compete with it head on.
Scott@ChannelVentures.com
