Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies
This paper compares different types of shared mobility solutions, in particular carsharing and ride hailing, the two most prevalent forms today. It describes the major trends prompting OEMs to engage in the mobility industry, such as urbanization, shifting consumer preference from 'owning' to 'sharing', and various technological advances. With that understanding in mind, the authors examine the current state of the shared mobility industry in more detail, taking a closer look at growth, profitability, and strategies for the different solutions. The study also considers the impact that highly automated vehicles might have on these mobility businesses, and suggests that carsharing will ultimately fold into ride hailing. Based on those analyses, the paper discusses forward directions for automakers, such as investments vs. partnerships, criteria for market selection, and synergies with other industry trends.
Swot Analysis of "Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies" written by Sven A. Beiker, Stephen D. Lewis includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Mobility Automakers facing as an external strategic factors. Some of the topics covered in Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies casestudy better are - – increasing transportation and logistics costs, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing household debt because of falling income levels, supply chains are disrupted by pandemic , wage bills are increasing, there is increasing trade war between United States & China, cloud computing is disrupting traditional business models,
digital marketing is dominated by two big players Facebook and Google, technology disruption, etc
Introduction to SWOT Analysis of Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Mobility Automakers, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Mobility Automakers operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies can be done for the following purposes –
1. Strategic planning using facts provided in Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies case study
2. Improving business portfolio management of Mobility Automakers
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Mobility Automakers
Strengths Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Mobility Automakers in Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies Harvard Business Review case study are -
Strong track record of project management
– Mobility Automakers is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Mobility Automakers
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Mobility Automakers does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Mobility Automakers in the sector have low bargaining power. Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Mobility Automakers to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Strategy & Execution industry
– Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies firm has clearly differentiated products in the market place. This has enabled Mobility Automakers to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Mobility Automakers to invest into research and development (R&D) and innovation.
Analytics focus
– Mobility Automakers is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Sven A. Beiker, Stephen D. Lewis can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Training and development
– Mobility Automakers has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Highly skilled collaborators
– Mobility Automakers has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
High brand equity
– Mobility Automakers has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Mobility Automakers to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Mobility Automakers digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Mobility Automakers has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to recruit top talent
– Mobility Automakers is one of the leading recruiters in the industry. Managers in the Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Successful track record of launching new products
– Mobility Automakers has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Mobility Automakers has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Weaknesses Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies are -
Slow decision making process
– As mentioned earlier in the report, Mobility Automakers has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Mobility Automakers even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Mobility Automakers is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High cash cycle compare to competitors
Mobility Automakers has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Capital Spending Reduction
– Even during the low interest decade, Mobility Automakers has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Mobility Automakers has relatively successful track record of launching new products.
Products dominated business model
– Even though Mobility Automakers has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies should strive to include more intangible value offerings along with its core products and services.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies, is just above the industry average. Mobility Automakers needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Mobility Automakers supply chain. Even after few cautionary changes mentioned in the HBR case study - Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Mobility Automakers vulnerable to further global disruptions in South East Asia.
Interest costs
– Compare to the competition, Mobility Automakers has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High operating costs
– Compare to the competitors, firm in the HBR case study Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Mobility Automakers 's lucrative customers.
Lack of clear differentiation of Mobility Automakers products
– To increase the profitability and margins on the products, Mobility Automakers needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies are -
Creating value in data economy
– The success of analytics program of Mobility Automakers has opened avenues for new revenue streams for the organization in the industry. This can help Mobility Automakers to build a more holistic ecosystem as suggested in the Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies case study. Mobility Automakers can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Mobility Automakers can use these opportunities to build new business models that can help the communities that Mobility Automakers operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Mobility Automakers is facing challenges because of the dominance of functional experts in the organization. Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Mobility Automakers can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Mobility Automakers can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Better consumer reach
– The expansion of the 5G network will help Mobility Automakers to increase its market reach. Mobility Automakers will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Leveraging digital technologies
– Mobility Automakers can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Learning at scale
– Online learning technologies has now opened space for Mobility Automakers to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Developing new processes and practices
– Mobility Automakers can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Mobility Automakers can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Mobility Automakers can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Manufacturing automation
– Mobility Automakers can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Building a culture of innovation
– managers at Mobility Automakers can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Mobility Automakers can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies are -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Mobility Automakers needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Mobility Automakers in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Mobility Automakers with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Mobility Automakers business can come under increasing regulations regarding data privacy, data security, etc.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies, Mobility Automakers may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Shortening product life cycle
– it is one of the major threat that Mobility Automakers is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Mobility Automakers has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Mobility Automakers needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing wage structure of Mobility Automakers
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Mobility Automakers.
Stagnating economy with rate increase
– Mobility Automakers can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Regulatory challenges
– Mobility Automakers needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Mobility Automakers.
Consumer confidence and its impact on Mobility Automakers demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Automakers in the Sharing Economy: An Examination of the Burgeoning Mobility Industry and Automakers' Strategies is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Mobility Automakers needs to make to build a sustainable competitive advantage.
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