Using the recommendation that you provided in Milestone One, you will develop a strategy to implement the innovation and get ahead in the marketplace.
You work as a middle manager for one of the top U.S. producers of luxury and mass-market automobiles and trucks. You are now leading a cross-functional team to move forward with the company initiative. To remain a viable competitor and meet the demands of consumers’ desire for technology, the company’s chief technology officer (CTO) has decided to implement the internet of things (IoT) into its product line.
In Milestone One, you and your cross-functional team looked at risks and benefits of each innovation option, competitors in the market, and the company’s internal capability for moving forward with the innovation. After doing this analysis, you presented your recommendation to various stakeholders about how to proceed. You chose one of the following:
The CTO has accepted your recommendation. Now you are ready to develop a strategy for taking the innovation to market. In order to develop a strategy, you will need to look at your competitors’ relative strengths in the current marketplace, to understand how the company compares to your competitors, and to identify the total market and the market’s annual growth rate. Finally, you also need to share your thoughts on how to respond to changes in business conditions. Although no one can predict what is going to happen, it is important to think about how flexible your plan is in order to meet unexpected conditions.
Using the recommendation you provided in Milestone One, develop a strategic plan to implement the innovation and gain competitive advantage. Use the Sales Forecast, Comparative Growth Data and Comparative Operating Statistics to complete this milestone.
Write a short paragraph describing the growth rate of each competitor. You will get the solution from the comparative growth data sheet.
How much of the market does each competitor now own? Do you see a trend of gaining or losing market share? Present your findings using Power BI.Perform your analysis for the cars and trucks category. Create pie charts using columns C and F from the comparative growth Excel sheet in Power BI.
Perform your analysis for the connected cars and trucks category. Create pie charts using columns H and K from the comparative growth Excel sheet in Power BI.
Determine each competitor’s financial strength by looking at their comparative operating data.
Is your company gaining or losing market share? Expand on the analysis done in Task 1 above and explain the major factors behind the change in market share.
What is your company’s growth potential in the industry?
How do your company’s financials look compared to your competitors’?
What is the TAM for cars and light trucks?
What is the TAM for IoT-connected cars and light trucks?
What is the projected compound annual growth rate (CAGR) for cars and light trucks?
What is the projected CAGR for IoT-connected cars and light trucks?
Identify the fastest-growing competitor.
What can you do if your customers are slow to respond (buy) the innovation?
What can you do if one competitor is overtaking all the others, including your company?
What is the size of development that will be required?
Will you require additional capital and personnel?
How would you approach determining the timeline from the beginning of development until initial product launch?
Submit a Word document of 5 pages, devoting 1 page to each critical element described above. Include a graphic using Power BI for competitors’ relative strengths (p. 1). Place the graphic at the top of the page with bullets underneath. Sources should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations.
|Markets and Competitors||Annual Cars & Light Trucks Revenue in 2020 (billions) TAM||Market share percentage for cars and trucks now||Projected CAGR over the next 10 years||Projected revenues in 2030 (billions)||Market share percentage for cars and trucks in 2030||Global Market for Connected Cars & Light Trucks (billions) TAM||Market share percentage for connected cars and trucks now||CAGR over next 10 years||Projected Conencted Car Revenues (billions) in 2030||Market share percentage for connected cars and trucks in 2030|
|Global||$ 3,227.70||100%||4.10%||$ 4,810.0||100%||53.9||100%||25.20%||$ 510.07||100%|
|Your Company||$ 187.10||5.80%||3.10%||$ 254.2||5.28%||3.83||7.10%||10.20%||$ 10.11||1.98%|
|BMW||$ 126.10||3.91%||3.70%||$ 181.5||3.77%||1.62||3.00%||25.50%||$ 15.67||3.07%|
|Toyota||$ 275.40||8.53%||3.90%||$ 404.5||8.41%||4.80||8.90%||24.80%||$ 43.97||8.62%|
|VW||$ 282.90||8.76%||4.30%||$ 433.1||9.00%||8.36||15.50%||23.20%||$ 67.30||13.19%|
|Note for student: Projected Global revenue for in-car connected services by 2030: $81.1 Billion|
|in billions USD|
|1 Euro = 1.21 USD|
|1 Yen = 0.0094 USD||0.0092|
|Full Speed Ahead To The Future. 2019 Annual Report". Volkswagen Group. 17 March 2020. Retrieved 17 March 2020.|
|converstion rages via Morningstar|
|Annual Report 2019" (PDF). BMW Group. Retrieved 19 March 2020.|
|Toyota Annual Report 2020" (PDF). Toyota Motor Corporation. May 12, 2020.|
|Ford Motor Company 2019 Annual Report (Form 10-K)"(PDF). sec.gov. U.S. Securities and Exchange Commission. January 2020. Note: numbers disguised by multiplying by 1.12 except for operating income multiplied by 10 and net income multiplied by20|