In summer 2025, we participated in a collaborative project with University of Gloucestershire's MBA/MSc students, invited by Impact Consulting. Located in Southern England and with nearly two centuries of history, this institution offers a wide range of education in various fields of science. As Crasman's representative, my role was to provide business students with a real-life business case, where they engaged in market research and strategic planning. The timing of the collaboration coincided excellently with our car dealership product development project. 

The project investigated the state of the car dealership market from the perspectives of consumer behaviour and the operational environment of dealers. We selected Sweden, Estonia, Latvia, and Lithuania as our target countries. We wanted to understand how different these countries actually are as operational environments compared to Finland and what challenges are involved in launching a similar product in these countries.

 The first part of the project consisted of the "Discovery and Insight" phase, which delved into topics such as:

1. Market analysis from the perspective of consumer behaviour.

2. Understanding the business and operational models of dealers.

3. Competitive landscape of digital sales channels and software tools in the car dealership industry.

4. Familiarity with local digital ecosystems – which entities provide local automotive data or other information or functionalities critical to operations.

The second major part of the study was the "Strategy and Recommendations" phase, where students could spread their wings in creating a digital/product strategy.

1. Synthesis and drawing conclusions from the discovery phase findings – what are the significant differentiating factors in various target countries, and which countries offer the best foundations for success and growth?

2. Strategic recommendations for entering new markets and concrete actions considering local competitive dynamics, customer behaviour, and technological environment.

Project Learnings

The student group had no prior experience in the context of car dealerships. Additionally, they had no local knowledge on how Sweden, Finland, or the Baltic countries compare to each other. This was both a challenge and an asset. Guiding the student group forced me to distil the basics of the car dealership industry into a concise and understandable format from the perspective of offering digital services. On the other hand, the students’ open-minded analysis opened my eyes to the differences, for example, between Estonia, Latvia, and Lithuania – it is not a wholly homogenous market area.

In the Baltic countries, used cars account for about 75% of the car market (The Baltic Times, 2025), meaning the structure roughly mirrors the situation in Finland. In Sweden, the share of new cars is significantly higher (around 37%) and more closely resembles Central Europe.

Digital Readiness of Society

In the Baltic region, over 70% of car sales involve used cars imported from Western Europe. Import cars also present their own challenges to dealers and consumers. For instance, in Latvia, the mileage on approximately 15% of sold used vehicles is tampered with. This figure is three times that of Estonia. This broadly reflects the differences in digital maturity between countries. Estonia is in many ways advanced compared to Finland. A good example is the government-offered FREE vehicle history check service (eteenindus.mnt.ee/public/soidukTaustakontroll.jsf?lang=en). Among the study's target countries, Sweden also ranks high in digital readiness. Sweden, Estonia, and Finland consistently rank at the top in the European Union’s Digital Economy and Society Index (DESI). This indicates well the readiness and willingness of businesses and consumers to engage in digital channels, and in this context, it must also be assessed in the buying and selling of cars.

Consolidation and Fragmentation

The study also unveiled significant differences in the business structure. In Sweden, the dealership network is more consolidated and organised. Additionally, private leasing and fixed monthly payment services play a notably larger role as purchasing methods than in the Baltics. Integration with finance service providers is crucial in this context, but on the other hand, finance companies are likely to have better capabilities to offer ready-made solutions. In the Baltic countries, the dealership network is much more fragmented. Smaller dealerships representing multiple brands play a larger role, and a significant number of cars are imported used from Germany, the Netherlands, and Poland. Cars often have more owners, and centrally recorded maintenance histories can be incomplete. (CSDD, 2024)

Technological Environment

In Sweden, car dealerships typically use more advanced DMS systems and tools integrated into ERP systems for managing inventory, customers, and sales. While these systems are well established, they often lack modern user experience, customisability, and modularity. As for system integrations, Sweden is highly favourable, as Transportstyrelsen provides vehicle information interfaces, BankID enables secure digital identification, and leasing and insurance companies offer interfaces to their systems. Software development standards and expectations in the Swedish car dealership industry are high.

In Lithuania, Latvia, and Estonia, the digital ecosystem is more fragmented but rapidly evolving. Many dealerships still rely on Excel-based tools, self-developed CRM systems, or basic inventory management systems, with no single DMS provider clearly dominating the market. Generic CRM platforms like HubSpot and Zoho are also widely used. Modernisation is progressing rapidly in these countries, supported by government digitalisation programmes. For example, in Lithuania, Regitra is opening vehicle registry interfaces, and in Estonia, the e-Estonia initiative has enabled comprehensive electronic services and information sharing. 

Looking Back to Home

Launching a highly industry-specific product in different markets is an intriguing challenge. From a software development perspective, we should standardise as many functionalities, data sources, and data models as possible, while also ensuring the ability to adapt swiftly to crucial market differences. This student collaboration was a fantastic opportunity for us to stop and clarify our own understanding of the needs and operations in the car dealership industry. The analysis of nearby markets surprisingly also helps to understand the situation of Finland's car dealerships in a structured and analytical manner.