Disruptive Innovation in Automotive Retailing

Abstract

Purpose: The paper explores the paradigm shift occurring in the automotive retailing industry since the advent of technological innovations and different solutions in mobility. Existing studies and literature focus on the specific aspects of this changing trend, which is why this paper concentrates on the holistic changes that include various approaches to the issue of disruptive innovation in automotive retailing.

Methodology: To answer the research questions, the article utilizes qualitative research approach in combination with inductive-interpretive analysis. Interviews with eight top-level professionals from the automotive industry reveal three different perspectives on the subject. The study analyzes interview results with coding methodology and MaxQDA software.

Findings: The findings center on two components of research: major trends and impacts. The trends include the changing approach towards usership rather than ownership and to clustered habitation in mega cities. What is evident is the stark impact of such trends as the rising popularity of battery electric vehicles, autonomous cars, and mobility as a service on the dealership model of retailing. The impacts include the falling need and demand for personal cars, the rise of large fleet services like car subscription or lower maintenance needs that are expected to drastically reduce the importance of dealership.

Limitations: To further understand the trends in automotive retailing, future researchers should focus on local trends in specific regions. Another limitation is linked with exclusive concentration on experienced professionals as sources of data.