How has the direct sales model impacted the traditional dealership model?
The direct sales model has disrupted the traditional dealership model by allowing manufacturers to bypass middlemen and sell directly to consumers without the need for dealership involvement. This has led to a shift in power dynamics, as manufacturers gain more control over the buying process and are able to lower prices and offer more flexible purchasing options. Dealerships are struggling to compete with the convenience and transparency afforded by direct sales, but some are adapting by offering additional services and focusing on customer experience to differentiate themselves from their online counterparts. The future of the dealership model remains uncertain, but it is clear that direct sales will continue to play a major role in shaping the industry.
This mind map was published on 9 June 2023 and has been viewed 117 times.