個案資料

AutoNation Inc. (AutoNation), the largest auto dealership group in the United States, found itself in an envious position at the end of 2022. Sales and profits were at an all-time high, and AutoNation had a strong cash position and growth aspirations. However, the auto industry was undergoing changes, driven primarily by the electric vehicle (EV) revolution that was in full swing in early 2023. Committed to an EV future, original equipment manufacturers (OEMs) were set to introduce more than forty new models in 2023 alone and were exploring direct-to-consumer channels that would take the dealership out of the sales process. Importantly, EVs would cost half as much as internal combustion engine (ICE) vehicles to maintain, taking a large chunk of margin away from auto dealerships’ parts and service (P&S) business. How could AutoNation evolve and change its business model to ensure the company would not only survive but also thrive within these new industry dynamics?

This case is intended for undergraduate- and graduate-level courses in strategic management, innovation, industry-wide innovation patterns, and disruptive innovation. It can also be used in courses designed to help students understand the basic notions behind a company’s or an industry’s business model. This case provides an opportunity for students to understand changing automotive industry dynamics and related business models and to observe how both new and old competitors conform to this model while attempting to differentiate themselves and their offerings. It also illustrates how the evolution of an industry’s core technology (in this case, the automobile power train) can disrupt the business model of downstream businesses such as auto dealerships. By working through the case and assignment questions, students will have the opportunity to do the following:<br><br><ul><li>Examine how the changing nature of the competitive landscape within the auto retail sector is driven by increased levels of competition, including new OEMs determined to sell and service their own EVs.</li><li>Define a disruptive business model and explain how the mass adoption of EVs and AVs will disrupt the auto retail industry through a series of fundamental changes to the industry’s profit model.</li><li>Explain how Tesla Inc. (Tesla), along with other new EV OEMs following suit, has disrupted the auto retailing industry through direct-to-consumer sales and service models.</li><li>Describe some of the complexities related to auto dealerships’ changing relationships with both OEMs and consumers.</li><li>Describe the role that new technology, such as electric power trains and autonomous driving software, plays in reshaping the industry’s business and profit models.</li></ul>

• auto industry
• disruptive business model
• electric vehicles
• autonomous vehicles
• auto dealerships
• auto regulation
• disruptiveinnovation
• business model