Weekly
Strategy
...advancing business
How
traditional auto parts can move
to digital model

been documented that automotive business will experienceFor a business to achieve its strategic goals and objectives,
unprecedented disruption. The value chain will be affectedtranslation of the idea that prompted it need to be developed
to the extent that product development cycles, sales andinto a framework which will help managers and employees
aftersales processes, the customer relationship will have toin delivering the proposed values to the targeted market.
transform significantly in order to keep up with the pace ofTraditional and digital models are often cited by the
digitalinnovations.scholars and professionals as major types of framework
Rules that governed the traditional business model areavailabletobusiness owners andstrategists.
being questioned inWhether
this world of digitaltraditional or
and resource baseddigital, model is a
economy. Thoughblueprint and
digital business isindicates how a
capital intensive but itscompany does
benefits in the currentbusiness. Before
digitalized businessthe advent of new
environment outpacedt e c h n o l o g y ,
what would accruabletraditional model
to auto spare partshave been used
dealers at traditionalprominently. It
level.There is no doubtspecifies how
Internet and mobilebusinesses deliver
technologies havevalues at physical
created new means ofs e t t i n g s a n d
selling vehicles or carsconsumers receive
parts with less barriersame on agreed
toentry.price. Digital
Then, why digital model for the Nigerian automodel first gained prominence in the 1990s when
spare parts dealers?As reported in the literature automotivebusinesses across the world started having e-commerce as
industry has moved from product-centric to a service-alternative to physical environments. Since its emergence,
driven digital one. Hence, the need for the dealers todigital model has transformed traditional model through its
embrace the change and manage it within their availablefour strategic processes of engagement, facilitation,
resources and acquisition of unavailable ones throughvisibilityandimmediacy.
collaboration. Enterprations' analysis revealed two themesEvidently, digital has influenced existing
towards digital model adoption by the dealers in Nigeria.traditional model of auto spare parts dealers leading
Like other studies and analysis on digital economy,unexpected disruption. Many businesses in advanced
sampled customers expressed hopes and fears about thecountries have taken the advantage and connected with the
Onlinecarparts effectivenessandefficiencyofthemodel.net generation customers. and
buycarparts are reference point in this regard. The two
companies established and operated in the United
Kingdom are taking the lead. Over the next five years, it has
Key Findings
Customer Experience:
Creating a superior
experience
Process Effectiveness:
Creating efficient
system
commerce platform that would make
sharing of relevant information easier
and an interactive platform for
responding to their enquiries should be
available. Quick delivery of products is
also considered by the customers as one
of the reasons that would facilitate their
purchase of auto parts throughCustomers wanted auto spare parts that
eCommerce platform. Prospectivewould be sold through the channel to be
customers also prefer quality productsof high quality and meet their needs.
thatmeettheirneeds.With the adequate description of the have physical contact with auto spare
varied auto parts on the channel, a products in online stores and that online
significant number of the customers payment system in the country remains
would buy the parts. They are also ready insecure. A large number of them
to buy parts appropriate for their cars or indicated that online shopping requires a
vehicles as long as they have opportunity number of processes before eventual
of tracking their order until delivery. purchaseofanyproduct.
Majority would also like to buy auto Customers believed that it is easier to
parts with warranty and effective returns buy their auto spare parts in physical
policy if the parts got damaged within stores without necessarily tracking their
the warranty period. On customer order before delivery, which is
services, customer service should be associated with online shopping. They
courteous and responsive, an e- were of the opinion that they would not

Strategies and Tactics
Contact
Here are what traditional auto spare parts dealers need to do:
A. Develop technology-oriented organisation and management structure that would enable it maximizes its
existing resources and capabilities towards the total mitigation of the challenges indicated by the customers.
B. Partner with a good number of automobile parts dealership in developed countries to provide products that will
meet customers' expectation.
C. Effective and efficient marketing communication strategies system for the creation of necessary awareness
about the benefits of buying automobile parts through online sales channel.
D. Invest in business-related technology infrastructure for effective product delivery and satisfactory customer
relations.
E. Offer complete range of products and provide detailed information on each product.
F. Adopt 'pay on delivery' payment option. This would solve customers' perceived insecurity associated with the
use of Credit Cards for online transaction purposes in the country.
Sourcesof Information
Al-Debei,M.M., El-Haddadeh,R.,andAvison, D., (2008) “DefiningtheBusiness Modelin
the New World of Digital Business”Proceedings of the Fourteenth Americas Conference on Information Systems,
Toronto,ON, Canada
BubbaPage(2016) “4WaystheDigitalAgeTransformedTraditionalBusiness Models”Inc
Deloitte(2016)AfricaAutomotiveInsights NavigatingtheAfricanAutomotiveSector:
Ethiopia,KenyaandNigeria
ErnstandYoung (2015) Futureof automotiveretail:Shiftingfromtransactionaltocustomer-
centric
KPMG (2016) GlobalAutomotiveExecutiveSurvey 2016:Fromaproduct-centricworld toa
service-drivendigitaluniverse
We provide a platform for working class professionals and aspiring entrepreneurs to own their business. Our focus
include;
Providing start-up strategy for different SMEs in Nigeria and Africa.
Tactical measuring and evaluation of business at initial, maturity and decline stage.
Reviewing of business's personnel, marketing and training components for greater output and profitability at
different stages.
Helping aspiring entrepreneurs with feasible business ideas and a workable business plan in the areas of
comprehensive business training programmes, networking activities and technology commercialization.
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www.enterprations.com
info@enterprations.com
+2348141374490
About Enterprations