Company: Zuna Motors: “Missing the Online Boat" Due Week 12 (4/2/18) Topics to consider: Retailing, sales force management, channels, technology, e-commerce Case: Over the past decade many auto companies have dabbled with online car sales but have abandoned their efforts for one reason or another. One of the strongest inhibitors is franchise law, which essentially blocks factory-direct sales - the most profitable and interesting application of utilizing an online channel. Our legal department has devised a potential plan in which we could sell the "trendsetter" model line we have in development exclusively online if a secondary company is set-up around it. We could then develop a manufacturing plan to churn out custom cars to order and deliver them direct with a fleet of flatbed trucks. Strategy Issues: • What is the best strategic direction to take? • Will people buy cars online? • Is this the right model and target demographic for this venture? • How do we manage the relationships with our franchise car dealerships that will not get this model to sell?