Disadvantages of automotive direct sales model

The automotive direct sales model has several disadvantages. One of the biggest concerns is that it could lead to a reduction in competition, as a company could establish a monopoly by controlling both the manufacturing and sales processes. Additionally, car dealerships play a crucial role in providing services such as financing, repairs, and maintenance, which consumers may not get with direct sales from the manufacturer. Further, direct sales may lead to high-pressure sales tactics by the company to meet their quotas, which could create an unfavorable experience for consumers. Lastly, automotive dealerships employ a significant number of people, and a shift to direct sales may lead to job loss in the industry.

This mind map was published on 9 June 2023 and has been viewed 65 times.