Method-P2
The scientific nature of this thesis, or rather its purpose, implies an explorative approach (Lundahl and Skärvad, 1982). We studied an area of which, because of its relatively new development, little is known. Electronic commerce in the automotive industry is not considered common knowledge and to us this was no exception. We therefore started out by building a knowledge framework before further penetrating the problem area. After extensive literature studies a deeper understanding of the area was attained. We could now identify the main actors on the market, theories available, and identify the areas where further studies were needed. This resulted in a more focused problem area and a defined course of action.
Through brainstorming, interviews and statistics we could identify the benefits of VolvoNet for the concerned parties. These benefits were studied from a theoretical viewpoint in order to find theoretical evidence of their relevance. The next phase of the study was to derive the utilities of the benefits, that is to see how they make an economical contribution to the organisation. As we also made a prognosis of the number of VolvoNet users we made it possible for Volvo to calculate the total economical contribution of VolvoNet for Volvo.
Some information in this thesis is not referred to a direct source but is based on an understanding which we have attained during the course of study. This “information” bank has among other things been used to describe the market and its actors. This information was collected from various sources during the process of writing this
thesis. These sources are further described below and are listed in the bibliography as Sources not referred to.
The thesis is written mainly for two audiences, the University of Uppsala and Framtidsfabriken/Volvo. These two groups have two very different levels of prior knowledge of the automotive industry and of using the Internet as
a communications channel. To make the reading interesting for both groups we have chosen to write the thesis in web format. That is, the form and structure of the thesis is designed to be published in hypertext format and not on paper. The advantage of this method is that it allows the reader to penetrate (with hyperlinks) the subjects that are unfamiliar, while the advanced reader can continue reading the main body of the text.
The thesis is written in English upon request from Framtidsfabriken.
Below we describe the main sources of information for the thesis in a principally chronological order.
1. Literature studies.
To attain an understanding of the market situation; how it works, and its main actors, we started out by studying the published material concerning the Internet as a communications channel and more specifically electronic commerce. As published literature was scarce and tended to have a very general approach to the Internet, we turned to online magazines for more specific and up to date information. Although some sources have been useful, the reliability of the sources can sometimes be questioned. We found however other more reliable sources on the Internet that could provide us with relevant and reliable information like OECD and the Department of Commerce in the U.S.. Framtidsfabriken has also assisted us with relevant information. Another purpose of the literature studies was to get a knowledge framework for the interviews.
2. Fair.
The 11 November we visited the Internet World Fair at Sollentuna Mässan. We spoke to representatives of various Internet agencies to discuss how they dealt with the problem of measuring soft variables.
3. Interviews.
As a result of the lack of published material on electronic commerce in the automotive industry we found it necessary to get in contact with the main actors on the Swedish market. Since few of them have been engaged in selling cars via the Internet for a longer period of time, it was necessary to get updated information of their progress and plans.
Convenience sampling (Andersson,1982, p. 12) was used to find the interviewed persons, that is we have chosen or been recommended persons who have great knowledge of the problem area. For example, the chosen dealers were picked from Bilweb’s list over connected dealers. The reason for choosing dealers connected to Bilweb was that it was the only service in Sweden that offered new cars on the Internet at the time. Unfortunately one of the dealers, it turned out, did not have any experience of new car sales over the Internet. He did, however, have experience from pre-owned car sales over the Internet. Relatively few people have insight in this area, which makes us believe that with the number of interviews that we have made we have managed to get a sufficient overall picture of the market situation.
Interviews have been carried out with two competitors, two dealers and Volvo Cars. We have also had continuous discussions with Johan A Larsson and other staff members of Framtidsfabriken.
We have been using a non standardised interview technique (Lundahl & Skärvad, 1982) in our interviews. The interviews with the dealers and Volvo were less structured than those with the competitors. With the latter we made telephone interviews where we presented specific questions that we wished to have answered. Whereas with the dealers and Volvo we realised personal interviews after testing the questions on Johan A Larsson at Framtidsfabriken. In these cases we had main topics and questions that were open for interpretation and discussion. These topics were then penetrated for specific information during the course of the interview.
Some of the interviews were supplemented with follow-up questions per e-mail.
4. Statistics. We have had access to up to date statistics derived from the pilot Internet service in Belgium and other statistical sources, e.g. Statistiska Centralbyrån.
Restrictions of information available
There is a lot of information on the subject of the Internet and more specifically electronic commerce available, but a great part of that information is often third hand data of a speculative nature which makes the value of those pieces of information questionable. Also, the Internet as a market place is a relatively new phenomenon and its rapid development makes information on this subject outdated very quickly. This has left us with information dated 1997 or later.
Although we have had close co-operation with Framtidsfabriken and Volvo some matters have remained
classified, as e.g. product margins.
A restriction in our study is that no reports or other forms of evaluation have been made of the pilot service in Belgium, which means that the information needed for a thorough analysis had to be collected from a variety of countries and organisations. We have not for example had the possibility to contact any customers or Volvo personnel in Belgium. We have had to gather the relevant information on the Belgium matter from
secondary sources instead.
Today, many of the major manufacturers in different parts of the world are testing similar services to the one offered by Volvo. Most manufacturers are thereby more or less at the same stage in their development of their equivalents to VolvoNet, which means that little is known and almost nothing has been published on the consequences of such a service. Nor are there any Swedish web sites that have had long experience of brokering new cars on the Internet.
