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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 online car sales market had become the market standard in 1999...
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