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Technology Stocks : Cobalt Group-(CBLT)

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To: M. Frank Greiffenstein who wrote (22)11/22/1999 1:29:00 AM
From: Paul K  Read Replies (2) of 141
 
CBLT creates auto websites for both dealers and manufacturers (which manufacturers I don't know).
Cobalt seems to play both sides of the fence, doing websites for both.

From CBLT pr we can find:

"Cobalt is the manufacturer-endorsed Web site provider for 11 makes, including Acura, Hyundai, Infiniti, Jaguar, Lexus, Mercedes-Benz, Mitsubishi, Nissan, Saab, Subaru and Toyota."

--Not too shabby a bunch. (I bet USWB would love to have these relationships in their camp.)

"Cobalt also provides parts data services to DaimlerChrysler, Hyundai, Mazda, Mitsubishi, Subaru and Toyota dealers."

I think dealers are probably getting a little stressed out that the manufacturers would try to overshadow the local dealers' presence online.

Dealers don't want to loose their local brand ("Richardson Autos") to become a faceless manufacturer outlet store.

Dealer brands are built on relationships - I think this is where Cobalt will help with the 'online branding' for many dealers.

Also, Cobalt can enable the dealer to get on line and push it's name above another dealer selling the same car down the street, with a unique website.
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Consider the following rough division of dealer types:

1. One-manufacturer dealership - one brand, mostly new cars.
2. Dealer representing two or more brands, new/used
3. Independent dealers, many brands of used cars.

For dual dealerships like a Nissan/Subaru or a Volkwagen/Volvo dealer -- which manufacturer's website does the dealer use? Does he have to accommodate two different sites?

I think Cobalt's niche is #2 and #3 above as the manufacturers try to suck up the one-brand dealers.

Cobalt may be in a niche, but its the #1 player in this niche.
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