The U.S. automobile industry is beginning to confront the next major technology – the internet. Business-to-business manufacturing systems and supply exchanges, together with business-to-consumer ordering and purchase systems, all have the potential to bring great efficiencies to this traditional industry. But each of these innovations raises new competitive issues. Internet ordering will greatly diminish the role of conventional dealers, who have thus far blunted its impact. B2B exchanges raise concerns about buyer power and other competitive effects. This paper outlines and analyzes these internet-drivenchanges and their competitive implications for the industry, its dealers, suppliers, and customers.
Review of Industrial Organization – Springer Journals
Published: Oct 3, 2004
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