Analysing General Motor Buy Power

General Motors

Internet today is starting to blur the differences between manufactures and resellers. Manufacturers decide to sell their products online, and customers are now requiring direct services and support from the manufacturer. If done correctly it will increase the overall volume of sales and does not hurt the channel partner. GMBuyPower has done it successfully. GMBuyPower is selling its vehicle through its dealer, maintaining the supply chain. The customer visits GMBuyPower chooses a vehicle and GMBuyPower will locate the nearest dealer according to customer’s preferences. This strategy avoids channel conflict between the suppliers and dealers. An example of a channel conflict situation; a few years ago Levi’s Jean Co. started to sell women’s jean on its web site to North American customers. They were actually so successful that the jeans shop that sell Levi’s jeans started to boycott, due to sales dropped. This is because Levi’s web sites are selling ...