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Automobiles: The Old Economy Collides with the New

Automobiles: The Old Economy Collides with the New 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Automobiles: The Old Economy Collides with the New

Kwoka, John
Review of Industrial Organization , Volume 19 (1) – Oct 3, 2004
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References (2)

Publisher
Springer Journals
Copyright
Copyright © 2001 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
DOI
10.1023/A:1011199821043
Publisher site
See Article on Publisher Site

Abstract

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.

Journal

Review of Industrial Organization – Springer Journals

Published: Oct 3, 2004

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