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Product cover image for Audi Seattle: The Threat of OEMs Selling Direct

Audi Seattle: The Threat of OEMs Selling Direct

Sheri Lambert, Jerry Miller, Sara Honovich

Product #:W41372
Supplier:Ivey/Temple
Discipline:General Management, Marketing
Setting:United States, 2024
Details:Case (PDF) • 7 pages • 2025-01-15

Subjects:

Leadership and managing peopleSales and marketingManagementMarketing

Industries:

Transportation and distribution

Geography:

United StatesNorth America
Your Price:$9.71

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In February 2024, the general manager and vice-president of Audi Seattle found himself having to consider the future challenges that could be in store for traditional automotive retailing. Despite having faced numerous challenges in the automotive industry over the years, such as recessions and factory strikes, he had remained dedicated to the car business in an ever-changing industry. Now, however, he was all too aware of the imminent threat posed by original equipment manufacturers (OEMs) selling directly to consumers. Franchise laws had historically shielded auto dealerships from such threats, but Tesla Inc. had bypassed these laws and was selling directly to consumers, altering the industry landscape. With franchise laws under threat and with some competitors already adapting to the shift, the general manager would have to act quickly in determining how to pivot to avoid revenue and market share losses. How should Audi Seattle adapt to the rapid changes taking place in the industry and secure its future?

Learning Objectives

This case is suitable for business programs at the undergraduate level where the emphasis is primarily on business-to-business (B2B) and business-to-consumer (B2C) business relationships. It is especially appropriate for classes focused on growth management, as well as expansion risks and opportunities. After working through the case and assignment questions, students will be able to understand and evaluate how OEMs, historically prohibited from engaging in direct consumer sales, are shifting towards selling directly to consumers and how an auto dealership might adapt to this shift to achieve success, based on brand, sales, and marketing factors. Specifically, students will be able to do the following:
  • Determine how to deal with the threat of organizations selling directly to consumers.
  • Analyze a company’s key success factors as well as the challenges it faces.
  • Identify innovative approaches a company might take to adapt to modern consumer preferences.
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Case Study: Audi Seattle: The Threat of OEMs Selling Direct (English version) | Ivey Publishing