Digitalization in the Automotive Aftermarket - An investigation of what impact digitalization has on automotive service dealers

Abstract

The automotive aftermarket is an integral part for many automotive companies, however it faces several challenges in the coming years. The digital development and shifting customer behavior are disrupting the industry and threaten the long-term profitability of service dealers within the automotive industry. The purpose of the study is to understand what impact digitalization has on automotive service dealers. This will be performed by investigating what challenges service dealers are facing in light of digitalization and how this affects the business model of the service dealer. In order to answer the purpose, a theoretical framework has been constructed with business model innovation, actor-network theory and data and information handling serving as base for the framework. To understand the impact of digitalization in the automotive industry, a qualitative study has been conducted using semi-structured interviews as the main data collection method. 11 deep interviews were held in total and both manufacturers and service dealers were interviewed in order to get a comprehensive view of the automotive aftermarket. This research identifies a clear difference between independent and authorized service dealers, not only in terms of business model composition but also in the nature of relationship and information sharing with Original Equipment Manufacturers. The research further find ways for service dealers to increase their digital presence with comparatively low effort, for example by enabling traditional offerings digitally. In order for service dealers to use digitalization as a differentiation factor relative competitors, effort should be focused on new offerings enabled digitally and developing a strategy for handling information and connectivity. The need for service dealers to secure the right competence in the coming years should be seen as a collective problem in which mutual efforts, rather than individual, would benefit the whole industry and the actors therein.