MIS In Action

Explore , examining all of its features and capabilities. Then answer the following questions.

  1. How does this Web site help AutoNation forge closer ties with customers and potential customers?

The Web site gives customers the feeling that they are more in control of their purchase. The site reduces information asymmetry by giving customers more information than was previously available by visiting an auto dealership in person. The Inventory Search and ResearchCenter areas of the site allow customers to obtain information without feeling overwhelmed or unduly influenced by car sales people. Customers and potential customers feel less pressure to make a snap decision and can spend as much or as little time on the site as they wish.

  1. What information could AutoNation collect from its Web site that would help it determine which makes and models of cars are of most interest to potential buyers?

AutoNation can use Web-tracking software to follow users through the site. It can examine click-throughs, pages most viewed, and inquiries made by site users to determine which makes and models they are most interested in. That data can be used by AutoNation and the auto manufacturers to supply the types of vehicles customers most want.

Use Figure 3-11, page 103, to discuss the value chain model. The text defines “value chain” and its critical role in the success of a company, including its relationship to how companies think about and relate to their customers.

Ask your students to apply the value chain model to your university to see where technology is applied. Note the emphasis on tying together the customers, manufacturers, and suppliers. Retailers such as Wal-Mart also apply value chain and supply chain management to their business processes. Wal-Mart’s systems allow it to track in-store sales down to the department and item level. That helps make Wal-Mart a formidable competitor in the retail industry.

The section on network-based strategies is an opportunity to show students how the Internet and other networks are influencing how organizations are managed and operated. Ask students to provide examples of virtual companies and keystone and niche firms with which they may be familiar.