In the summer of 2025, we participated in a collaborative project invited by Impact Consulting, alongside the University of Gloucestershire's MBA/MSc students. Located in southern England with nearly a two-hundred-year history, the educational institution offers extensive training across various scientific fields. As the representative of Crasman, my role was to provide business students with a real-life business case, where they could engage in market research and strategic planning. The timing of the collaboration coincided perfectly with our car dealership product development project. 

In the project, we investigated the state of car dealerships in nearby markets from the perspective of consumer behaviour and the operating environment of dealerships. We chose Sweden, Estonia, Latvia, and Lithuania as the target countries. We wanted to understand how these countries genuinely differ as operational environments compared to Finland and what challenges are associated with launching a similar product in these countries. 

The first part of the project was the "Discovery and Insight" phase, which delved into the following topics, for example:

1. Market analysis from the perspective of consumer behaviour.

2. Understanding the business and operating models of dealerships.

3. The competitive landscape of digital sales channels and software tools in car dealerships.

4. Knowledge of local digital ecosystems – which entities provide local car data or other information and functionalities critical to operations.

   
   

The second main part of the investigation was the "Strategy and Recommendations" phase, where students could test their wings in creating digital/product strategies.

1. Synthesis and forming conclusions from the insights of the discovery phase – what are the significant differentiating factors in the various target countries, and which countries offer the best prospects for success and growth?

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

Lessons Learned from the Project

The student group had no prior experience in the context of car dealerships. Moreover, they had no local understanding of how Sweden, Finland, or the Baltic countries compare with each other. This was simultaneously 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 between Estonia, Latvia, and Lithuania – it is not a homogeneous market area in all respects.

In the Baltic countries, used cars make up about 75% of the car market (The Baltic Times, 2025), which is roughly equivalent to the situation in Finland. In Sweden, the share of new cars is significantly higher (approximately 37%) and corresponds more to Central Europe in this respect.

Digital Readiness of Society

In the Baltics, over 70% of car sales are of imported used cars from Western Europe.  Imported cars also create their challenges for car dealerships and consumers. For example, in Latvia, it is estimated that the mileage has been tampered with in 15% of sold used cars. This figure is three times higher than the situation in Estonia. This broadly reflects the differences in digital maturity between countries. In many respects, Estonia is advanced compared to Finland as well. A good example is the state's FREE vehicle history check service (eteenindus.mnt.ee/public/soidukTaustakontroll.jsf?lang=en). Among the target countries of our study, Sweden is also highly ranked in digital readiness. Sweden, Estonia, and Finland consistently rank high in the European Union member states' Digital Economy and Society Index (DESI). This indicates well the readiness and willingness of businesses and consumers to conduct transactions through digital channels, and in this context, it must also be assessed in the context of buying and selling private cars.

Consolidation and Fragmentation

The study also found significant differences in the structure of the business. In Sweden, the dealership network is more consolidated and organized. Additionally, private leasing and fixed monthly payment services play a significantly larger role as purchasing methods than in the Baltics. Integration with finance service providers is critically important in this case, but on the other hand, finance companies probably 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 portion of cars are imported as used from Germany, the Netherlands, and Poland. Cars have relatively more owners, and centralized knowledge of service history may be lacking. (CSDD, 2024)

Technological Environment

In Sweden, car dealers typically use more advanced DMS systems and tools integrated with ERP systems for managing inventory, customers, and sales. Although these systems are established, they often lack a modern user experience, customizability, and modularity. Concerning system integrations, Sweden is highly favourable, as Transportstyrelsen provides vehicle data interfaces, BankID enables secure digital identification, and leasing and insurance companies offer interfaces to their systems. Standards and expectations for software development in car dealerships are high in Sweden.

In Lithuania, Latvia, and Estonia, the digital ecosystem is more fragmented but developing rapidly. Many car dealerships still rely on Excel-based tools, self-developed CRM systems, or basic inventory management systems, and no single DMS service provider clearly dominates the markets. Generic CRM platforms like Hubspot and Zoho are also widely used. Modernisation is progressing rapidly in these countries, supported by government digitalisation programs. For instance, in Lithuania, Regitra is opening interfaces to the vehicle registry, and in Estonia, the e-Estonia project has enabled comprehensive electronic services and data dissemination.  

Looking Back Home

Launching a very industry-specific product across different markets is an intriguing challenge. From a software development perspective, it is essential to standardize as many functions, data sources, and data models as possible, but it is also crucial to ensure that the decisive differences in the markets can be adapted to agilely. This student collaboration was a great opportunity for us to pause and clarify our own understanding of the needs and operations of the car dealership business. Surprisingly, the analysis of nearby markets also helps to understand the situation of Finland's car market in a structured and analytical way.