Competing for value creation and value appropriation: dealer strategy in automotive industry architectures

The interplay of firm strategies and coordination policies within firm architectures has been an interesting research topic for quite some time. Performance and advantages are influenced by elements such as complementarities and mobility that in turn are shaped by the coordination choices adopted. In the automotive industry much focus has been dedicated over time to upstream activities with little attention to the strategies and performance of dealers who are the smaller players in the chain. This paper carries out an exploratory analysis based upon a longitudinal study of larger dealers in the Italian market. The analysis provides some insight on how some dealers appear capable of creating / appropriating a greater share of value by reducing their dependence from the manufacturer. This consists in undertaking inter-architecture (multi-branding) and extra-architecture activities (used cars).