The automotive industry is currently undergoing one of its biggest transformations in modern times. New business models, digital sales channels and direct relationships between car manufacturers and customers are rapidly changing the playing field. Traditional car dealers, who have long had a natural position in the value chain, are facing a disruptive situation where their future role needs to be redefined.
In addition to changing purchasing behaviours, there is also a technological shift – the transition from fossil fuel-powered cars to electric cars. This means that traditional service models are changing radically, as electric cars do not require the same type of maintenance as petrol and diesel vehicles. The service revenue that has long tied customers to dealers is thus being further challenged, making the need for new offerings and value-creating roles even more crucial.
Our consultant recently completed an assignment with a leading player in the automotive industry in their work to develop a new idea landscape that describes the value chain of the future for car dealers. The purpose of the assignment was to jointly formulate and clarify how dealers can create new value for their customers at a time when old models are no longer self-evident.
Working closely with the client, our consultant helped structure, refine and concretise the message in the pitch – so that it not only reflects the changes that are taking place, but also inspires retailers to see the opportunities in the new landscape.
This is an example of how we at Frontwalker DRIVE help established players in various industries navigate change, find their new role, implement critical shifts and turn challenges into business opportunities.