Introduction
Autobytel was the first company to leverage the internet in the car-buying market. Their revolutionary product matched consumers with car dealers and offered consumer resources for buying, selling and owning a car. With no cost of goods sold, no procurement, no carrying or shipping costs and no inventory risks, this business model allowed Autobytel to capture 100% gross margin. The company's first mover advantage allowed them to set the bar for online car sales. Although Autobytel performed fairly well in the online car sales market, capturing 25% of all online car sales in 1999, the company suffered from high operating expenses (i.e. $3.7 million on internet marketing and advertising in Q2 of 1999) which exceeded their revenue. Looking towards future growth, Autobytel management wanted to expand their online service for car sales to all car-related services – essentially owning the customer experience for cars.

Company
Autobytel's first mover position in the......

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Title: Autobytel
Approximate Word Count: 1264
Approximate Pages: 6 (250 words per double-spaced page)

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