Running head: MAZDA’S E-COMMERCE SITE

MAZDA’S E-COMMERCE SITE

Chapter 8 Case Study One

Advance Accounting Information System (ACCT757 SEC. 001)

Winter 2020

Irene N. Guintu- 301047636

Md Shams Uddin

Date: April 14, 2020

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Discussion Question #1

The main reason dealers were unsatisfied related to Mazda’s one-size-fits all e-commerce

site because this site fails to offer dealerships with the freedom the dealers need to run the special

regional sales and promotions considering that Mazda set a limit to maintain control of its brand

and business. As stated in the passages, the company site has been centrally administered and

shared by all dealership and allow customers to shop or purchase for auto parts and accessories

through online.

Question #2

If each dealership ran its own unique and independent parts under e-commerce site, it would be

impossible for Mazda to maintain control of its brand and business, not to mention the cost associated

with designing and maintaining 170 dealerships across the country with separate sites.

In addition, each dealer has to pay for the site, the maintenance and to hire someone who is more

than competent in technology to continue consistency on the site can be hard to find, which is time

consuming on their part. If the intention would be to make the parts for ladies and gentlemen, this is a

procedure for failure, because IT do not have that required skill set and core competencies to pull it off

day in and day out.

Also, dealers would not have the time to manage inventory control among other things. Car

salesmen and women are on the floor to sale cars. They have paperwork and to be in charge of customer's

needs at all times, the bank, the delivery of the car, follow up and so forth are all top priority in this kind

of business. It also seems to me an e-commerce site would get in the way of calling prospective customers

to come into the show room.

Therefore, the time-consuming effort to customize an E-commerce site is simply not feasible.

Unless the manufacturer is committed to pull down resources and talent to accomplish this task, it makes

no sense for the dealerships to be hung up doing more with less.

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Cost of setting up and maintaining a decent E-commerce site is considerable, especially when it

has to be integrated with the systems of the dealer and the various parts suppliers and warehouses. So, if

you order a part online you expect to see if it's in stock at the dealer, or in a warehouse two days away, or

in another country and is going to take seven days.

Now sure it is possible to create such a system, but it is a considerable job to set up and maintain.

It would be a different system for each dealer (hundreds of them) and If it is not working reliably, then

there is no point having it.

Or, should Mazda set it all up once, employ one team of programmers to look after each dealer,

and have a simple customized front end for them?