A major automotive company wanted to sell made-to-order vehicles direct to customers, bypassing dealers, in order to save buyers thousands of dollars per automobile. Led by a current Rivia partner, the company had to first rethink the existing customer experience from the selling of the vehicle to the vehicle itself. They also had to refine or create from scratch everything behind the scene from the manufacturing process to the type of employees. What would they need to do to sell direct?
The company established that made-to-order vehicles could be produced and that a new supply chain could be created to deliver the vehicles. An Internet-based direct relationship between potential customers and manufacturer could be developed. Financially the model worked—the company would generate more profit and the customers would save a lot of money. But one obstacle could not be overcome. The franchise laws, they found out, were too tight and too tough to bypass the dealers. The traditional distribution model had to remain the same.