Final answer:
The e-commerce model for a company selling tires to the automobile industry through the internet is known as the business-to-business (B2B) model. This model facilitates online transactions between businesses and has expanded due to advances in technology and globalization.
Step-by-step explanation:
The type of e-commerce model used when a company sells tires to the automobile industry through the internet is referred to as business-to-business (B2B). This model encompasses transactions between businesses, such as a manufacturer and a wholesaler, or a wholesaler and a retailer.
Advances in technology and the rise of globalization have contributed significantly to the growth of B2B e-commerce platforms, allowing suppliers like the tire company and buyers from the automotive industry to connect and transact from anywhere in the world.
Business-to-business e-commerce platforms greatly increase the potential market reach for companies and introduce a higher degree of competition, as illustrated by the market shifts explained in Harold Hotelling's model. Hotelling's premise was that customers would travel the shortest distance to purchase a product, but with B2B e-commerce, physical distance becomes less relevant, as transactions can be completed online, broadening market competition.