share your revised paper from Milestone Two, which provides an overview of your competitors’ position in the marketplace, the available and future marketplace, and a plan for how to address a change in business conditions. Ensure this section includes the following information.
Submit a Word document of 5–8 pages, devoting 1 page to each critical element described above in Part 2 along with an introduction and a short executive summary. Use the feedback you received on Milestone Two to revise your original report. Sources should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations.
Dr. Alyssa Dassa
8th August, 2021
1. The competitors’ relative strengths as indicated in the comparative growth data set indicate that VW has a higher revenue as compared to other competitors. Its revenue in the year ending 2020 was 282.9 billion dollars. VW also has the largest market share amongst other competitors. Its market share in the motor industry is 8.77%. The other competitors lag just behind VW with Toyota being second and BMW third in performance. According to statistics, their past revenue earned in the year ending 2020 was 275.4 and 126.1 billion dollars respectively. They also have a market share of 8.54 and 3.91 percent respectively. VW, Toyota and BMW are projecting to increase their revenues by 2030 to 433.1, 404.5 and 181.5 billion dollars respectively. At this time their market share for cars and trucks will be 9%, 8.42% and 3.77% correspondingly. From the above data, if Nagar (my company) is to be placed in the current market setting under similar conditions, then its performance would be positive. According to the data, Nagar would have a performance that is higher than BMW. The company would be trailing behind VW and Toyota in performance of both the revenue projected from sales and the market share in percentage. Currently, the company’s revenue from cars and trucks sales is 187.1 billion with a market share of 5.8%. From the analysis, it is clear that VW makes much revenue from its large market share. A large market share can be a result of customer preference due to availability of spare parts, friendly market prices and trust to the brand (Na, Kang & Jeong, 2019). In this case BMW has the lowest annual revenue since normally, BMW products are highly priced hence do not have a large market share. The relative prices of VW aid it in gaining a competitive advantage in the automobile market (Na, Kang & Jeong, 2019). The pie charts below shows the market share now and in 2030.
The connected cars and trucks revenues in 2030 is projected to be 67.3 billion for VW, 43.97 billion for Toyota and 15.67 billion for BMW. The data presents statistics of retaining market share positions. From the trends, each of the competitor companies retains its position and none gains a higher performance or surpasses the other from previous results and ratings. However, the market share percentage declines for each company. The pie charts below represent a comparison of the projected market share percentage for connected cars and trucks now and in 2030.
2. Nagar’s market share in comparison to that of other competitors is improving. The current market share for cars and trucks is 5.8%. If the company is to be placed in the current market with similar conditions as other competitors, the company would be ranked third among the four companies. Its market share is projected to be 5.29% for cars and trucks in 2030. This would be a reduction in market share by 0.51% but the company would still maintain its position in the market. It would still be third in ranking and earn a revenue of 254.2 billion. In the progress of the years, the company’s market share goes down due to a number of factors.
First, since there is introduction of new technology and advancement of technology used in manufacturing, the company could lose track of its manufacturing processes. Keeping up with evolving technology could be a hindrance to the manufacture of automobiles that meet the current standards in the industry (Alfarisi & Sabli, 2017). Another reason could be the change in customer choices and preferences over time. From now to 2030, in a span of ten years, there could be a lot of changes in customer needs and wants. Since a consumer is a rational being and tends to compare goods purchased, they tend to compare the vehicles manufactured by Nagar to those of other competitors. Manufacturing is improving over time and Nagar might not have the resources to meet the customers’ manufacturing needs (Alfarisi & Sabli, 2017). This will lead to a loss in the company’s market share. Challenges from competitors could be another factor that will lead to a loss in the market share. The competitors could change their marketing strategies. The competitors could also have automobiles that meet customers’ needs and preferences which will earn them a competitive advantage (Alfarisi & Sabli, 2017). In this case, the market share of Nagar will decrease.
In this case, Nagar has a positive growth potential in the automotive industry. According to statistics, Nagar has the lowest operating and net income of 5.7 and 0.9 billion respectively. This is low compared to the competitors. However, Nagar has a revenue higher than BMW. The company has managed to maintain a balance of trade having a higher value of assets than liabilities. Its liabilities are worth 270.2 billion while its assets total to 310 billion thus an equity of 39.9 billion. The company’s competitors’ have higher liabilities than assets which shows losses in the trade. They also incur much costs from the high number of employees as compared to Nagar which has only 190,000 employees.
3. The TAM of a product determines the revenue a company is going to rise from a certain product or service in a given period of time (Haseeb et al., 2017). According to the data presented, the TAM for cars and light trucks for all companies shows that there is a global production of 53.9 billion auto motives. Nagar produce 382.7 billion, BMW produces 161.7 billion, and Toyota produces 479.7 billion while VW manufactures 835.5 billion. From the data, the companies’ TAM indicates that the revenue attained from sales of the connected cars and light trucks is different for each company. The technological advancement of VW has made it have a higher TAM than other companies. Innovativeness in VW Company has led to manufacture of new automobiles that meet customers’ needs and preferences. The CAGR for cars and light trucks projected over the next ten years is 25. 2 globally with 10.2 for Nagar, 25.5 for BMW, 24.8 for Toyota and 23.2 for VW. The CAGR for all companies ranges from 10% to 30% which is a good growth rate for all companies. VW is the fastest growing competitor as it has a very high projected market share in 2030 of 13.2% which is higher than other companies. Its projected CAGR for the next ten years is expected to be 23.2%.
4. Business changes are dominant overtime for any successful business. For a business to be successful, it should take different turns in marketing strategies and technological innovations (Fonfara, Ratajczak-Mrozek & Leszczyński, 2018). There are cases whereby customers positively adhere to the changes while in other cases, some customers tend not to embrace the changes. In a case where customers are slow to respond to changes in innovation, the following actions should be taken. The first step is to review the customers’ needs and preferences (Fonfara, Ratajczak-Mrozek & Leszczyński, 2018). In this case, we will be able to establish what the customers require hence produce for them auto motives with the specs they desire. Then we would enquire from the customers their feedback on the company’s products. An improvement or adjustments would then be made for the existing products to meet the needs of the customers. If a competitor is taking over the market, as a company, we would perform a comparative analysis between our company and the competitor company (Fonfara, Ratajczak-Mrozek & Leszczyński, 2018). This will give a clear view on what the competitor is doing extra. We would also perform a SWOT analysis for the competitor to learn their strengths, weaknesses, opportunities and threats.
5. Product launch is a major role to the growth of a company. Launching a product to the market is the most sensitive part of a product since it determines its reception by consumers in the market (Najafi-Tavani et al., 2018). To launch a product in the market, then the company should first learn about its customers’ needs, write a positioning statement about the market, pitch the positioning strategy to the stakeholders and plan the marketing strategy. Then when the marketing strategy is established, a goal for the launch should be set and a promotional content be set. All stakeholders and the team involved for the launch should be informed then the launch happens (Najafi-Tavani et al., 2018). In this case for this project, the company will require extra personnel to help in composing the product launch. Extra funds will be required to initiate the launching process as well pay for the extra staff acquired (Najafi-Tavani et al., 2018). Strict timelines will be followed to ensure that each step before the product launch takes the required time. This will help in meeting deadlines and avoid time wastage.
Alfarisi, S., & Sabli, T. E. (2017). The influence of intangible benefit towards market share of manufacturing company. Advanced Science Letters, 23(9), 8470-8472.
Fonfara, K., Ratajczak-Mrozek, M., & Leszczyński, G. (2018). Change in business relationships and networks: Concepts and business reality. Industrial Marketing Management, 70, 1-4.
Haseeb, M., Hussain, H. I., Ślusarczyk, B., & Jermsittiparsert, K. (2019). Industry 4.0: A solution towards technology challenges of sustainable business performance. Social Sciences, 8(5), 154.
Na, Y. K., Kang, S., & Jeong, H. Y. (2019). The effect of market orientation on performance of sharing economy business: Focusing on marketing innovation and sustainable competitive advantage. Sustainability, 11(3), 729.
Najafi-Tavani, S., Najafi-Tavani, Z., Naudé, P., Oghazi, P., & Zeynaloo, E. (2018). How collaborative innovation networks affect new product performance: Product innovation capability, process innovation capability, and absorptive capacity. Industrial marketing management, 73, 193-205.
Market share percentage for cars and trucks now your company BMW toyota VW 5.8 3.91 8.5399999999999991 8.77
Market share percentage for cars and trucks in 2030 your company BMW toyota VW 5.29 3.77 8.42 9
MBA 580 Chief Technology Officer (CTO) Brief
Over the past three decades, sensors have been increasingly integrated into automobiles. Currently, a
typical car has 50–100 sensors (Tyler, 2016), and this is expected to grow to as many as 200 over the
next few years. These sensors measure everything from oil levels to the distance from the car in front.
These sensors currently connect (Computers in Your Car, 2018). These computer systems can warn of a
collision or an engine problem and communicate the condition to the driver (e.g., turn on the check
Increasingly, these computers are connected wirelessly via the internet to other computers, like the
user’s phone for things like remote starting, and to the manufacturer to help generate predictive
maintenance recommendations. The commercial term currently used for this is connected cars.
Technically, this is part of the internet of things (IoT) concept—where devices from refrigerators to door
locks are connected via the internet for convenient access by the user from phones, computers, and
Currently, and in the immediate future, connected cars will help the driver navigate, find the cheapest
gas station, locate the nearest Starbucks or parking lot with open spaces, and allow friends on social
media to know when their friend will arrive. As more semi-autonomous driving features are added over
the next few years, these wireless computers will also talk to other cars to help predict their next move
and communicate to road sensors to monitor conditions (Gossett, 2019). Eventually, enough
information will be provided to and from the connected car that autonomous driving will become
It is estimated that the market for IoT-connected cars will grow from $54 billion in 2019 to over $510
billion by 2030 at a 25% compound annual growth rate (CAGR) (Meola, 2020). This compares with an
overall industry growth of 4.1% (The Global Automotive Motors Market Size Is Projected to Grow from
USD 20,321 Million in 2020 to USD 25,719 Million by 2025, at a CAGR of 4.8%, 2020).
Our company is marketing some connected car capability—but we are not the leader. We need to
innovate so that our products can be competitive in the rapidly growing market. Our cars have sensors
and computers, and our technology expertise is competitive. We have some connectivity—driver apps
for keyless start and OnStar (The Benefits of OnStar | Keeping You Safe and Secure, n.d.) connectivity to
detect accidents and alert first responders. Our growth and ultimate health as an enterprise depends on
us taking the leadership or, at least, keeping up with the leaders. Furthermore, there is significant
opportunity to improve our customer satisfaction and increase our repair and parts revenue streams by
alerting customers to needed maintenance before an expensive breakdown occurs on the road.
With our current technology implementation plan, however, we expect to grow at 3.1%, about 1% less
than the industry. Our growth projection for connected cars is 10.2%—less than the industry at large.
We must speed up our innovation or risk losing market share.
Here is what we estimate our competitors are doing and how fast they are adding technology. The
leader among existing auto manufacturers is BMW. BMW cars have significant connectivity to
information services now. Some driver-assist functions, such as auto-parking and lane-keeping, have
been in BMW models for several years. Market research suggests that BMW will have a full suite of
information connectivity in their cars within several years and that the company will begin producing
fully autonomous driving machines within 12 years. Toyota has fully integrated social media in Japan
and expects to implement it in European and U.S. markets, subject to 5G wireless availability.
Volkswagen is about where we are—but has partnered with Microsoft to jump ahead.
Competitors from outside the traditional automobile manufacturers are also indicating that they intend
to enter the connected car market with disruptive technologies. Apple, for example, is aiming for a fully
autonomous delivery vehicle by the mid-2020s and an autonomous passenger car within a decade.
Our goal is to launch an autonomous vehicle following quickly after BMW, our main luxury competitor.
However, we have a long way to go. We are considering two ways to get there: A) Introducing
incremental improvements faster than we have in the past and improving our current models each year
or B) introducing a radical innovative design in several years. Option B does not forestall us from
continuing to introduce incremental improvements in the interim.
Our approach will depend on your analysis of our capabilities to innovate. How can we get the
technology being researched in our lab ready—how can we develop it, produce it, and take it to market?
What technology do we already have, and what will we need to acquire? What are our competitors
doing, and are there weaknesses we can exploit?
The two paths we can take are incremental innovation, or discontinuous or radical innovation.
What do I mean by this?
Incremental innovation. The automobile is a mature technology—the modern automobile is
over a century old and it has been changing and adapting over that time. Our company does
incremental innovation as well as our major competitors and the costs are built into our way of
doing business. Given how we build automobiles today, we can continue to add sensors,
computers, and IoT capabilities each model year just by upgrading modules. There are risks,
though: 1) Could changes in the market impact what customers demand? A faster competitor or
a new entrant could produce a breakthrough in automobiles that makes everything else
obsolete. It has happened in other mature industries—could it happen here? 2) Are we missing
significant new opportunities (e.g., market growth overall or opportunities in integrated
maintenance, service revenues and parts, or a high-margin business) that we do not control
Discontinuous or radical innovation. This would be more expensive—a completely new model is
expensive—as much as $6 billion (Viswanathan, 2013). A major redesign and recent technology
integration are also riskier to develop—we might fail—and it would take longer to get to market.
We might require enough of our existing resources that we could fall behind with our current
models, but it also might provide insight in incremental changes to current models while we
developed a major new product line. It is a lot to think about. That said, we could take the
leadership position ourselves in the growing market and better protect ourselves from
competitors. If we took this path, we would first introduce a new high-end model and, as we
brought costs down, rapidly deploy it across our whole product line, using this innovation
process to accelerate our ability to innovate.
Tyler, N. (2016, December 14). Demand for automotive sensors is booming. Newelectronics.Co.Uk. https://www.newelectronics.co.uk/electronics-technology/automotive-sensors-market-is- booming/149323/#:%7E:text=Currently%2C%20each%20vehicle%20has%20from,car%20based% 20on%20current%20trends
Computers in your car. (2018, January 24). AAMCO Colorado. https://www.aamcocolorado.com/computers-in-your- car/#:%7E:text=Your%20Car’s%20Computer,controls%20to%20meet%20emissions%20standard s
Gossett, S. (2019, August 13). IoT in vehicles: A brief overview. Built In. https://builtin.com/internet- things/iot-in-vehicles
Meola, A. (2020, March 10). How 5G & IoT technologies are driving the connected smart vehicle industry. Business Insider. https://www.businessinsider.com/iot-connected-smart- cars?international=true&r=US&IR=T
The global automotive motors market size is projected to grow from USD 20,321 million in 2020 to USD 25,719 million by 2025, at a CAGR of 4.8%. (2020, August 17). PR Newswire. https://www.prnewswire.com/news-releases/the-global-automotive-motors-market-size-is- projected-to-grow-from-usd-20-321-million-in-2020-to-usd-25-719-million-by-2025–at-a-cagr- of-4-8-301113089.html#:%7E:text=%2F%3Futm_source%3DPRN- ,The%20global%20automotive%20motors%20market%20size%20is%20projected%20to%20gro w,at%20a%20CAGR%20of%204.8%25.&text=The%20growing%20adoption%20of%20these,dem and%20for%20safety%20and%20convenience
The benefits of OnStar | Keeping you safe and secure. (n.d.). OnStar. https://www.onstar.com/us/en/why-onstar/
Viswanathan, B. (2013, May 7). Why are cars not getting cheap even with better economies of scale? Forbes. https://www.forbes.com/sites/quora/2013/05/07/why-are-cars-not-getting-cheap- even-with-better-economies-of-scale/?sh=3ad2b1045ad9
|Company||Number of Sensors and Computers by 2025||Functionality Emphasis||Current Connected Services||5–10 Year Product Plans||Existing Partnerships|
|Your Company||65 sensors/30 computers||vehicle control, systems maintenance, entertainment, navigation, 5G||navigation, emergency services, service status||fully integrated information system, assisted driving, expanded service information, semi-autonomous vehicle within 10 years||Toyota, Waymo|
|BMW||125 sensors/50 computers||vehicle control/safety, IFTTT-customized applications and IoT connectivity, LTE||navigation, emergency services, smart house connectivity||fully integrated information system, semi-autonomous driving, connection to traffic information systems, introduction of fully autonomous driving early 2030s||Daimler|
|Toyota||100 sensors/40 computers||vehicle control, social media, safety, entertainment, navigation, 5G||navigation, emergency services, social media||fully integrated information system; semi-autonomous driving; connection to traffic information systems, expanded social media, and communications; consumer services; maintenance; fully autonomous vehicle early 2030s||Microsoft, Ford|
|VW||90 sensors/35 computers||vehicle control, maintenance, in-car consumer experience||navigation, emergency services, consumer orders, maintenance status||fully integrated information system; semi-autonomous driving; connection to traffic information systems; connectivity with smart home; fully autonomous vehicle early 2030s||Microsoft|