The changing landscape of auto distribution

The emerging electronic marketplace will change the structure of value chains and will-in particular-increase the presence of intermediaries (so-called "cybermediaries"). The paper examines the roles and functions of these new players and their impact on established distribution and sales channels in the case of the automotive industry. Two different automotive cybermediary categories are identified: automotive service brokers and automotive information brokers. Their initial success indicates that they might become serious competitors to the automobile manufacturer's exclusive distribution systems. Our analysis focuses on the impact of the World Wide Web in an industry which is characterized by physical products and infrastructures. Based on this analysis and reconstruction of current trends in the automotive industry, we discuss strategic options for automobile manufacturers using a blend of market brand strength mixed with the concept of an online community.