Description
CDK Digital Marketing
Decision Focus: CDK Digital is the exclusive website vendor to General Motors US network of more than 4,000 dealers. It is four years into a five year contract and faces a looming crucial contract renewal. GM views the contract with its independent franchised dealers as a collaborative decision between the dealers and the corporation. Traditionally, dealers and the manufacturer have conflicting interests. If the dealer council rejects the renewal, there will be no new contract.
Preparation Questions:
- What misalignment(s) caused channel conflict between manufacturers and dealers in the automotive industry? How was this conflict reflected in the attitudes of GM and its dealers toward the CDK Digital program?
- How would you characterize CDK Digitals core competencies as of 2011?
- Suppose a car shoppers interests could be known when she visited a dealer website, how would the dealer want to treat her? What about the OEM?
- How can CDK Digital leverage its core competencies to provide a website solution that both GM and its dealers consider to serve their interests?