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.

Required:

a. Think about a typical car-buying experience where a consumer visits dealerships and

buys a car. List the steps in that value chain, and discuss the time, quality, and cost of

the experience to the consumer.

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?