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Nowadays new car buyers can configure the car of their dreams on Microsoft's MSN Autos Web site, as well as those of Ford, GM,

Nowadays new car buyers can configure the car of their dreams on Microsoft's MSN Autos Web site, as well as

Nowadays new car buyers can configure the car of their dreams on Microsoft's MSN Autos Web site, as well as those of Ford, GM, and other auto giants. Many independent online car purchase and research companies offer similar services. Car buying information provided by manufacturers, brokerage sites, car dealers, financial institutions, and consumer advocate Web sites has exploded in the past few years. Yet in the age of the Internet, the auto industry remains a steadfast holdout to innovations that might threaten the well- established and well-connected supply chain, the car dealership. American new car buyers simply cannot skip the middleperson and purchase an automobile directly from the manufacturer. That's not just a business decision by the manufacturers; that's the law. Even so, many car buyers use the Internet as a place to research their purchases. Instead of selling new cars directly, Web sites such as Autobytel.com of Irvine, California, just put consumers in touch with a local dealer where they test-drive a vehicle and negotiate a price. Autobytel.com has been referring buyers to new and used car dealers since 1995. It also offers online financing and insurance. Online car-buying sites on the Web make consumers less dependent on what cars a dealer has on the lot. At online sites, buyers can customize a car-or van, truck, or sport utility vehicle by selecting trim, paint, color, and other options before purchase. They can also use Web sites such as CarBuying Tips.com to help prepare for the final negotiating process. a.. What are the business models discussed in the case study above. b. Why do we see a growth in e-commerce websites? Identify some limitations of these websites/e-commerce. c. What features of the Web and the Internet are used to make these e-commerce websites? What is one way these car dealers can market their products through e-commerce? Act Go t

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