Information Strategies: Motor Dealerships and the Porter Thesis

In a study of 116 Volvo dealers and 146 Ford dealers, attitudes towards the use of information technology as a method of creating competitive advantage were examined. Based on Porter′s work it was hypothesised that in the British market Ford operates as a broad focus cost leader whilst Volvo operates as a narrow focus differentiator and this leads to greater emphasis on strategic market information by Volvo dealers and on cost data by Ford dealers. The results partially supported the thesis. However, the research cast doubt on the assertion that companies must choose one strategy to avoid being stuck in the middle. At the level of attitudes towards information needs and more strongly in uses of information technology for competitive advantage, motor dealers remain naïve and the major initiatives flow from the manufacturers and potentially reduce the long‐run autonomy of dealerships.