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Strategic Plan

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Strategic Plan

To expand businesses and become more competitive, you must possess innovation. This

allows you to increase productivity, reduce costs, and become more profitable. Innovation is a

crucial aspect of small and medium-sized companies, which typically need economies of scale

that large companies can exploit. An all-encompassing strategic plan has been created to help the

mass-market and luxury car industries adopt the incremental innovation strategy. With such a

structured approach, the company might eventually include new technology features into its

more extensive product range in addition to its model. For the business to meet client demands

and maintain its position as a market leader, it must constantly innovate. As the middle director,

my primary responsibility is to foster a cross-functional platoon. The company's core platoon is

in charge of incorporating IoT results into their product immolation. We batted the benefits and

downsides of both incremental and spastic invention possibilities, as well as our druthers and

those of our challengers in the request, with across-functional platoon previous to deciding that

our company should introduce a new product line. The CTO has to come up with a launch

strategy after receiving the recommendation. A strategy plan is established to ascertain the

market shares, competitive landscape, annual growth rates, and TAM.

Competitor Analysis

Competitive analysis is used daily among automobile firms to evaluate their competitors'

products, prices, and market position to gain a competitive edge. By examining real-life cases

and an intense case study, this essay highlights the importance of competitor analysis in

uncovering its revolutionary potential. The growth rate of companies is a valuable tool for

measuring their development and growth over the years. A company's fiscal performance

regarding its challengers and the eventuality for long-term growth can be estimated using growth
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figures. The relative growth report shows the estimated growth rates of our association and

challengers until 2030. From 2019 to 2030, the request share numbers for buses, exchanges, and

cold-blooded vehicles suggest that our rivals Volkswagen, Toyota, or BMW will continue their

conditioning. Request shares at the following times only in case of small oscillations. The

corporation may face competition from companies such as Toyota, Volkswagen, and BMW.

Over the next ten years, BMW is projected to grow at a rate of 3.7 percent. According to Tang

and Chen (2020), Volkswagen and Toyota are expected to expand at rates of 4.3% and 3.9%,

respectively, throughout the same timeframe. Their excellent market performance, innovative

strategy, and well-known brand are a few key factors that could be involved and contribute.

Because of this, rivals in the integrated automobile and pickup truck sectors have also

demonstrated substantial growth.

Competitor’s Relative Strengths

Competing companies that are already established in the industry include Volkswagen

and Toyota, although Volkswagen's market share is only 15 percent and Taiwan' possesses 8

percent. The luxury car maker easily beat its rival BMW.

The industry's anticipated sales

By 2030, the industry's revenue growth rate is about 1%, which is a low growth rate.

With 13% and 8% of the market share, respectively, the industry is expected to present serious

competition for the Volkswagen and Toyota brands. We project BMW's market share to be at a

low of 3%, but we expect it to grow faster than the luxury car industry. VW and Toyota

primarily use their profit margins of 20 and 22, respectively, which are based on specific

financial information from each industry. Furthermore, higher capital levels improve financial

stability and provide a significant advantage. Currently, the company has a relatively small
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market share in cars and trucks when compared to Volkswagen and Toyota. Although it has a

small industry share of only about 3%, its sales exceed BMW's. Despite only having a 3%

market share, it outperforms its rival BMW in terms of sales. That industry includes 7% of the

related transport sector, although it is smaller than Toyota and Volkswagen. Variability and

changing customer satisfaction are the primary drivers of sales volume. Cars and trucks will have

a sales capacity of 5% in 2030, while connected vehicles and truck sales will only have the same

capacity at an additional During the remainder of the forecast period, we expect the company's

sales volumes to decline in both regions.

Potential Total Available Market (TAM)

According to the Merklee Company, the total revenue of a good or service per market

share corresponds to the potential market value. Comparative data shows that our company's

revenue from passenger cars and light trucks will be $187.10 billion in 2020 compared to

$3,227.70 billion worldwide. VW has the loftiest TAM at $ 282.90, followed by BMW at $

126.10. Volkswagen leads the$53.9 billion global request for IoT-connected buses and light

exchanges with a request value of$8.36 billion. Total profit for IoT-enabled vehicles and light

exchanges worldwide is stands at $ 53.9 billion, with major vehicle producer companies like

Volkswagen motorists having a larger share of $ 8.36 billion. This percentage is by far followed

by Toyota which accounts for $ 4.80 billion. Toyota is slightly followed by our company with a

profit margin of $ 3.7.9 billion. Finally, BMW experiences the lowest profit margin of $ 1.62

billion. VW is a major supplier of both traditional and Internet of Things (IoT) connected cars,

with Toyota lagging.

Projected compound annual growth rate (CAGR)

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The worldwide market of cars to be used by passengers and light trucks used in

industries, organizations, and businesses will grow at an annual growth rate of approximately

4.12% in the next ten years to come. VW company has the potential to bounce back to the first

position that will see it outperforming the global vehicle giants in the market by 0.25%. Our

company expects growth to be at 3.10% CAGR, BMW to 3.70%, and Toyota to 3.90%.

Projected Compound Annual Growth Rate

BMW is expected to achieve a CAGR more significant than that cars and light trucks

connected with the technology of Internet of Thinks. This will be compared to the cars and light

trucks that are extensively used in the modern times. Based on the global market CAGR forecast

of 25%, BMW organization will have a compound annual growth rate of about 24.90%.

Following BMW’s increase in the CAGR, Toyota company will also see an increase of

approximately 25.20%. Finally, Volkswagen Organization will expect an increase of roughly

22.90%. Unlucky enough, the organization I am working in has experienced a wide range of

setbacks leading to its expected compound annual growth rate to stand far much below as

compared to the competitors above. That is to say, the compound annual growth of the

organization standards at approximately 9.90%.

Identify the fastest-growing competitor

As of right now, VW is the most competitively growing company and is likely to

continue leading the industry dominated by vehicles connected with IoT, while BMW company

is predicted to top on cars connected with internet of things and the compound annual growth

rate competition over the next ten years. Over the next ten years, for instance, it is anticipated

that Volkswagen will make $433.1 billion in sales. The business would be able to develop and

accelerate its creative capacity to build and introduce new, distinctive cars to the market thanks
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to its present revenue and partnership with Microsoft, one of the most giant technological

corporations. Its operational margin, measured in terms of income and economic percentage,

may affect its productivity and growth.

How to Adjust to the Changing business conditions

When the business environment is fluid, the industry can take a few steps to ensure that

potential customers are unobtrusively drawn to their latest transportation solutions. A primary

tactic is to offer new recommendations and offers if customers are slow to adapt themselves

quickly enough to essential company updates, leading them not to buy products. The company

uses digital networking sites and corporate websites to promote its advanced products.

What to be done incase consumers slows to respond to the innovation

The organization will put in place a particular rule to gain a significant edge. This may

differentiate the services and products by developing Internet of Things-based automotive parts.

Employing this strategy could assist the company in showcasing how these will improve the

demographics of its consumers. Concept to Begin To activate the proposal, several steps need to

be completed. For the market to effectively integrate the continuous improvement technique, a

wide range of IoT-based capabilities must be included in the products it chooses. The industry

would prioritize steady expansion to prosper under the novel, inventive approach.

Concept of Launch

To achieve better connectivity, the industry must switch to newer platform hardware. In

the current economic climate, a company may need more employees in addition to money to

succeed. More funding is required so that the company can develop new directions and

strengthen its core communication skills. Besides financial support, the company can also count

on customers who possess cutting-edge Internet of Things technology. Given that this proposed
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comprehensive strategy is centered around Internet of Things (IoT), the skills of employees

working in this area are critical to moving an intended growth trajectory forward in the

automotive industry (Othman et al., 2020). Customization would be taken into account when

planning a business launch that relies on IoT.

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References

Blakeman, R. (2023). Integrated marketing communication: creative strategy from idea to

implementation. Rowman & Littlefield.

Othman, B. A., Harun, A., De Almeida, N. M., & Sadq, Z. M. (2020). The effects on customer

satisfaction and customer loyalty by integrating marketing communication and after sale

service into the traditional marketing mix model of Umrah travel services in

Malaysia. Journal of islamic marketing, 12(2), 363-388.

Tang, H. W., & Chen, A. (2020). How do market power and industry competition influence the

effect of corporate governance on earnings management?. The Quarterly Review of

Economics and Finance, 78, 212-225.