B2C E-commerce in Automotive Market

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Added on  2019/09/30

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Literature Review
AI Summary
This literature review explores the impact of B2C e-commerce on new car sales, focusing on the Saudi Arabian market. It discusses how digitalization and e-commerce have reshaped the automotive industry, enabling companies to reach global customers and enhance their competitiveness. The review highlights the advantages of e-commerce, such as improved customer engagement, enhanced brand image, and the ability to compare car models online. It also contrasts these benefits with the limitations of traditional physical research, emphasizing e-commerce as a catalyst for the automotive industry.
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Running Head: B2C Literature Review enhancement 1
B2C Literature Review enhancement
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Running Head: B2C Literature Review enhancement 2
Introduction
Globalization and digital transformation acted as the cornerstone in reshaping the
automotive industry. Due to this, the automotive aftermarket as well as secondary and primary
market attained a serious alteration in its paradigm. Digitalization assisted in the change from
conventional legacy procedure to click and breaks. This helped the organizations operating under
the umbrella sector automobile to retain its competitiveness despite of extreme distress. In lieu to
the above statement, author) signified that utilization of e-commerce technologies would not
only simplify the way to reach potential suppliers but also target customers in the entire globe.
As a result, the demand and total sales of the concern would get increased significantly thereby
diminishing the operating costs in the coming era as compared to many others. Therefore, it may
be mentioned that e-commerce would be considered as one of the most efficient technique for
the sector of automotive to remain active among others. Contrary to this, author) depicted that
proper identification and analysis of the features of the competing brands and the target clients
need to be investigated. Only then, the management of the automotive company would become
feasible in retaining its popularity and demand. The attraction of the clients would also be
retained despite of other rivals.
This report mainly tries to highlight the effect of B2C e-commerce over selling of new cars. To
do so, Saudi Arabian market is taken into consideration.
Discussion
Effect of B2C e–commerce on new car sales 213
The automotive market of Saudi Arabia is extremely competitive. However, it attained a serous
setback in 2016 due to the fall in the prices of the crude oil. Therefore, at that time, the power of
existence or survival of the players became quite risky. Thus, to cope up from such situation,
most of the automotive players decided to implement advanced techniques like e-commerce.
Author) proposed that e-commerce is considered as the medium that helps in developing a strong
bonding with the suppliers, partners and customers. As a result, the selling power of the products
of the car companies in Saudi Arabia would get enhanced considerably. In regard to this, the
profitability and brand image of the car organizations would also get augmented. However, it
may be possible only by developing a highly informative website including varied features and
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Running Head: B2C Literature Review enhancement 3
pictures of the models of the new cars. The unique selling propositions or facets of the models
also need to be mentioned within the website so as to fascinate the target individual. And e-
commerce would also offer the facility to compare the features of a specific model with other
competing brands prior making the final decision in just certain minutes. In contrast, author)
determined that such types of instant facility would not be attained through physical research
since it is quite time consuming. Apart from this, the reviews and feedbacks of any model may
also be easily examined through websites or internet. But, this is not possible in case of physical
analysis of the car market. Due to these aspects, e-commerce acted as a catalyst for the interested
consumers of automotive industry.
Influence of B2C e-commerce over stores distribution
B2C e-commerce and supply chain
Conclusion 100
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Running Head: B2C Literature Review enhancement 4
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