| Wayne State University College of Lifelong Learning Interdisciplinary Studies Program Instructor email: d.r.bowen@wayne.edu Instructor tel (WSU) (313) 577-1498 / (Home) (248) 549-8518 Macomb University Center, WSU office (810) 263-6700 / (313) 577-6261 |
Computers, the Internet, and Society http://www.cll.wayne.edu/isp/drbowen/inetw00 AGS 3360 Section 301 Call Number 99879, 4 cr or ISP 7990 Section 300 Call Number 95259, 4 cr |
Last updated: 2/3/2000
Link back to course Welcome
Computers, the Internet, and
Society
Agenda for Class 3
2/3/2000
Since some of the operations don't bring in any revenue, so they must be subsidized by the parts that do bring in revenues. This is because a dealer that did not, for example, provide free information about different models would loose almost all of its business. Now, the Internet makes providing information about different models very inexpensive. Much more information can be provided and the prospective customer can choose and configure the information to suit their personal approach. For people who don't actually need a test drive (or who do this at a dealer), the sales can also be faster and provide more options for payments and other details, under the control of the prospective customer. So a web site operator can come in and pick off those parts of the dealer's operation. But all of these services rolled up together are what defined the dealership. If all the dealer does is service orders from a web site, much of their staff and much of their control over the process disappears. The revenues are not there to subsidize the non-revenue aspects The dealership has been "blown to bits." The authors of this book say, "Car dealers are sitting ducks." The end result is known. the main questions are: (a) Do the dealers understand that they are doomed? and do they admit it? (b) Can they retain their monopoly under the state laws? (c) How fast will their businesses fall apart? (d) What parts will they be able to retain, and can they make a profit on these parts?