Question

5. CarPoint is a comprehensive consumer-oriented automotive web site offering users

complete car-buying and care information on all makes and models. It provides fast, convenient

access to detailed specifications and pricing information on both new and used

cars. It also provides reviews and advice from leading automotive writers, and personalized

maintenance and recall information. Ford Motor Company was CarPoint’s first

partner. Ford’s concept is to allow consumers to order any model car to their exact specifications

and receive immediate feedback on availability. Consumers are able to schedule

delivery and service at their local dealership, making it easier for consumers to buy cars

over the Internet.

Once a consumer decides what car she wants to buy, CarPoint locates an existing car,

regardless of where in the country it is, or they place an order for a new custom car to be

built at the factory and delivered to the consumer’s local dealership. During the process,

both the manufacturer and the dealer will get instant, online status reports on the order

from the time the order is placed until it is delivered to the customer.

Ford sees its advantage in better managing its order-fulfillment process. It streamlines

production and allows better inventory management through its supply chain.

b. List the steps in the Internet value chain, and discuss the time, quality, and cost of the

experience to the consumer.

c. What cost, quality, and time benefits will Ford likely encounter with their new

arrangement with CarPoint? What causes these benefits?

d. How will a service like CarPoint likely affect dealers’ behavior toward their customers?

Answer 1

Various steps that includes in the whole concept are given below.

1) ‘CarPoint’ is an automobile website that coordinates with different car manufacturers and car dealers for new/used cars. They provide detailed pricing and specification information for all the available models with their partners.

2) ‘CarPoint’ publishes detailed car reviews and advice from automobile experts and provides personalized maintenance or recall information to their customers.

3) Regardless of the location inside the country, a buyer has the provision to compare and select a model then it will be shipped to a dealer as per the customer location. This dealership also provides periodical maintenance services as well. If a consumer wants some customized features, then a new manufacturing order will be placed. In either case both the manufacturer and dealer gets instant online status updates, until the delivery.

Advantages for a customer

(a) It eliminates the need of visiting different dealerships to compare the specifications of different models by various manufacturers. This saves time, money and effort of a customer. They can conveniently do this job through the internet and can place the order using ‘CarPoint’.

(b) It ensures the involvement of a local dealership that is very convenient for regular maintenance works or breakdown / accidental services.

(c) Information regarding periodic maintenance and other expert suggestions are readily available.

Advantages for Ford

(a) A buyer who chooses the Ford brand has the provision to know the current availability of a product instantly over the internet through ‘CarPoint’.

(b) Clarification in availability possibly leads to immediate new orders including the ones with customization request.

(c) Different divisions of Ford that includes manufacturing and sales will get regular updates online after an order being placed until its delivery. This ensures the efficiency of the whole process due to the provision for constant monitoring.

Dealers point of view

(a) It still requires the coordination of a dealer to deliver the car. So all usual after-sales business including spares, services and other repair works will come to the dealership.

(b) The whole process is very transparent and customer-centric. So the chances of any mistakes while noting down the new order or in customization request gets eliminated for the dealer because in here customers are fulfilling all the order placement procedures.

(c) This also ensures less manpower involvement from a dealer in getting new orders.