1. The Motorious Retail Store: "Apple Store meets Pep_Boys, Wal-Mart Style"
In its execution, the disruptive business model is a global retail franchise for
"customizing used cars", with the aim of fostering a socially conscious brand
which promotes the extremely profitable recycling of cars (e.g. the
Platform=Razor, Parts&Accessories=Razor Blade), a trickle down model to the
higher volume cars of the premium brand manufacturers (beneficial owners).
Inclusive is customer service which excels above all others, quality products and
services which allow for warrantee and (very importantly) ENHANCING RESALE
VALUE of the car, and ancillary services heretofore unavailable in the segment.
This is most easily achieved through a ROLL-UP, or acquisition/rebranding model
to seed the FRANCHISE, followed by the sale of new franchises to FRANCHISEES.
The GOAL is to aggregate the most profitable products and services available
for a car (some, heretofore unavailable in the industry) in one retail point
(BRAND) for the consumer, partially owned and managed by a consortium of
auto manufacturers and technology companies themselves. In aggregate, the
VALUE PROPOSITION is established ("the sum of the parts is greater than the
whole"). Adding FINANCIAL SERVICES creates an unbeatable value proposition
for the consumer, the suppliers and the OEMs, who seek to engender brand
loyalty and repeat customer purchases of the same automobile platform.
Since, for the most part, the consumer will already own the vehicle in question or
know what vehicle they want to purchase cum customization, it is possible to set
up numerous franchises with each franchise creating a "supermarket" (WAL-
MART) effect with scale. Even where that is not the case, it is not that different
from having a series of auto dealership franchises owned by one person, who
sells to various customer bases. The competition is a natural part of the business,
where the OEMs win is the value proposition they present compared with those
members of the fragmented segment with whom they compete.That would also
give a more reasonable value proposition for the consumer, and possibility of
volume sales, given that 70% of all vehicle purchase transactions in the United
States (by number, 55% by dollar volume) are used cars. A separately owned
franchise (separate from car dealerships) would also allow the automakers to
more effectively capture the revenues and profits themselves.
The lynchpin of the strategy is the disruptive financial services(significant interest
rate savings vs. credit card purchases) model, which ties the various retail
marketing initiatives franchise's co-branding, cross marketing and cross selling
partners, in a AutoCentric™ model (beginning with all things automotive: gas
purchases, parts and service sales, rental cars etc.) and growing to include ONLY
those products cross marketed and sold. It is model which uses the internet in a
B2B capability to facilitate consumer purchasing (via automotive or car related
"applications"), rather than the internet as an end in and of itself, and is to
beadministered through an affinity program via www.motorious.tv, which is
expected, via telematics, to be expanded to all (projected 800 million) vehicle
owners.