Internet Disruption: How will you react?

The Internet has disrupted the status quo for many businesses. From retail stores to newspapers, businesses are facing a changed playing field. For example, geographical location is less of a boundary. Consumers now have access to more information regarding your products. They can easily compare your offerings and prices against your competitors. These changes can be a disaster or an opportunity depending on how you react as a business.

I recently have been shopping for a vehicle. I have been looking at both new and used, both on the Internet and at the car lots. The whole spectrum of the car buying experience.

A few month's back Seth Godin posted his experience with car salesman and the monumental difference between good and great. I'll relate my experience from a slightly different angle.

Specimen A: The Car Sales Creep.
Some of the salesman that I dealt with certainly lived up to their stereotypically negative reputation. Many of these would not list a price on the Internet. When you ask they refuse to give an honest or straight-forward answer in regards to the price of a vehicle. They had posters on the walls of their offices blatantly designed to inspire fear. These dealers would not answer any questions by email. To get any answers you have to visit them. The entire experience exudes contempt for the very people that make their business survive.

In the pre-Internet days this approach worked. The high-pressure approach pushed customers to close the sale at a price best for the salesman. Customers were more or less geographically confined (like sheep stuck in a pen with a wolf). Customers had limited ability to price shop. Even if the customers detested the experience, there was little choice - especially in smaller cities / towns. The setup is great for salesman. It absolutely stinks for the consumer.

Specimen B: The Internet Savvy Car Salesman.
Other salesman (and dealerships as a whole) have adopted another approach. When you ask for a best price, they give it to you. In fact, many of them simply post their best price on the Internet. Their manner is "helpful" instead of "predatory". They are willing to respond via email, even sending extra pictures or information on vehicles.

This second group has begun responding to the changes brought to the game by the Internet. The changes are helping to not only keep them relevant in the market, but even to benefit from the new playing field.

Two very different approaches in an Internet-enabled world. Needless to say, Specimen A views the Internet as a disaster. Specimen B views the Internet as an opportunity.

How Will Your Business React?
Chances are you are not a car salesman. Nevertheless, we each do well to examine how the Internet has changed the playing field in our specific industry - and honestly consider whether we are adjusting accordingly.

Has the Internet changed your business? How have you had to adjust? How have you used it as an opportunity?