AUCNET USA Case Study

7Even though Aucnet Japan is successful, AUCNET USA is losing the interest of dealers of used cars from its satellite auto auction process. Help the management analyze alternatives and come up with recommendations.

Excerpt From Case Study

In 1985, Mr. Masataka Fujisaki, an entrepreneur, saw an opportunity to transform the marketplace of wholesale auto auctions in Japan. In this market, large volume dealers sold and bought cars from other dealers; no sales were made to direct consumers. The vehicles were transported weekly to one of several established locations and sold to dealers at live auctions. This traditional method was inefficient because only about 40% of the inventory were sold at any auction. Mr. Fujisaki envisioned a computerized auction system where the dealers did not have to leave their workplace to buy and sell cars. Therefore, he established an auto auction business utilizing information technologies to buy and sell cars in the wholesale market.

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