Strategic Marketing

MKT 460
Section: 07
Submitted to: Mahtab Muntazeri (MBT)
TEAM: 05
Group Project Submitted by:

SL Name ID
no.
03 Mahamudul Hasan Shahed 2013439630
09 S M Shafiul Alam Sakib 2111405030
12 Syed MD. Rubayet Ala 2111549630
18 Nusrat Jahan Mim 2121993630
26 Maruf Ahmed 2212886030
AUTOMOTIVE
INDUSTRY
ANALYSIS
The Future of the Automotive
Industry
1. Electrification, AI, and 3D printing: These trends support
sustainability efforts in the automotive industry.

2. Vehicle autonomy and safety: Software and AI are crucial for

developing autonomous vehicles, addressing new safety regulations.

3. Connected vehicles and IoT: Software and AI-powered cars offer

opportunities for personalization, customization, and new business
models.

4. Converging trends: The automotive industry is experiencing its most

exciting period of innovation since the invention of the motorcar, with
a focus on customers, businesses, and sustainability.
Electrification of the automotive industry Increasing role of software in
vehicles
Rise of autonomous vehicles Sustainability in the automotive
industry

The impact of AI and machine

learning
MORE ABOUT AUTOMOTIVE
INDUSTRY

Integration of
Adoption of 3D IoT (Internet of
printing things) in
vehicles

Personalization Changing safety

and standards and
customization regulations
 Vehicle Type Pros Cons

- Limited range
- Zero tailpipe emissions
EV (Electric - Longer recharging time
- Lower operating costs
- Higher upfront cost
Vehicle) -
-
Quiet operation
Incentives & rebates
- Charging infrastructure still
developing

- Better fuel economy than

- Limited electric-only range
ICE
HEV (Hybrid - No need for external
- Complex drivetrain
Electric Vehicle) charging
- Reduced emissions
- Higher cost than ICE
- Battery replacement costs
- Regenerative braking

- Reduced fuel consumption - Higher initial cost

PHEV (Plug-in - Can drive on electric - Battery range limitations
Hybrid Electric power alone for short trips - Still relies on gasoline
- Flexible refueling options - Battery replacement and
Vehicle) - Lower emissions than ICE maintenance costs

- Higher emissions
ICE (Internal - Established infrastructure - Higher fuel costs
- Lower upfront cost - More maintenance
Combustion - Extensive range required
Engine) - Quick refueling - Increasing regulatory
pressures
• Do you believe that established car manufacturers (such as Toyota, VW, BMW, Mercedes, Volvo, Honda,
Ford, and GM) have a better chance of succeeding in the EV market by selling EVs alongside their ICE
and HEV models, compared to start-up companies that focus solely on EVs? Why or why not?

According to our point of view, we believe that established car manufacturers have a better chance of
succeeding in the EV market by selling EVs alongside their ICE and HEV models, compared to start-up
companies that focus solely on EVs because car manufacturers such as Toyota, BMW, Volvo, etc. are
experienced and know how to control the strategic process in the long run. Although people liked EVs and
it had a huge market share, they also shared the criticism faced by ICE models these days.

In our point of view, this case might be a bit sensitive for new start-ups because they will need to educate
its buyers about the car and create a brand which falls in the route of long run. Competition for new start-
ups will be very high and since its facing quite a few number of criticism, they might fail with their product
that’s why we believe established manufacturers have better chance to succeed than new start-ups.
In the long run, will the established automotive giants face a fate similar to companies like Nokia and
Motorola if they fail to adopt new technologies?

• Compare the industry structures of the automotive industry and the mobile phone industry.

If they fail to adopt new technologies, there is no doubt that they will fail in the long run. The world is
developing everyday and new technologies are being bought in a daily basis. Coping up with new
technologies are very important in today’s world. If we look at the example of Nokia and Motorola, they
failed in the long run because they did not adopt the technology that the world wanted rather they
moved on with their own strategy which caused a huge impact on their company.

Nokia Motorola
Late Shift to Smartphones Inconsistent Strategy
Operating system challenges Delayed Adoption of Android
Organizational Inertia Management Issues
Market Misjudgment Product Execution and Differentiation
nalysis of market trend of the Automotive industry focusing on the EV & HEV tech

millions
Competitive Advantage Of EV
Innovation andCar Manufacturers
Technology
Leadership

Environmental
Government and
Incentives Sustainability
Appeal

Early Market Operational

Positioning Efficiency
Competitive Advantage Of Traditional Car Manufacturers
Established
Infrastructure

Proven Brand Heritage

Technology and and Customer
Reliability Loyalty

Cost and
Diverse Product
Economies of
Lineup
Scale
 Strategic recommendations for New EV
start-ups

Unique
Advanced Strategic Customer
Value
Technology Partnerships Experience
Proposition

Charging
Sustainabilit Efficient Government
Infrastructur
y Practices Production Incentives
e

Strong Target
Brand Market
Identity Segments
Strategic recommendations for Existing EV-only
Car

Strengthen
Expand Product Enhance Battery
Charging
Lineup Technology
Network

Optimize
Increase Global
Customer
Presence
Experience
Strategic recommendations for Traditional car
manufacturing giants.

Enhance Digital
Transition to
Invest in EV and
Sustainable
Development Connectivity
Manufacturing
Features

Strengthen
Improve Fuel
Brand Position
Efficiency and
in Emerging
Hybrid Options
Markets
Pestel Analysis: Rise of Electric and Hybrid
Vehicles
Government support and incentives.
Stricter emissions regulations.
International trade policies and tariffs.

Increasing consumer demand.

Battery cost and affordability.

Growing environmental awareness.

Urbanization and life style changes.

Battery advancements
AI, autonomous driving and Hybrid powertrain
improvements
Pestel Analysis: Rise of Electric and Hybrid
Vehicles (Continued..)

Reduced carbon emissions.

Resource demand and mining
impact.
End-of-life battery disposal.

Compliance with emissions

regulation.
Infrastructure laws and standards.
 Porter’s Five Forces

1. Threat of new entrants: Low barriers to enter, especially for tech companies
and startups, leading to increase competition.

2. Bargaining power of suppliers: high power for key suppliers like battery
manufacturers due to specialized technology and limited supply.

3. Bargaining power of buyers: moderate power for individual consumers, but

higher for large fleet buyers. However, increasing consumer awareness and
model diversity can limit buyer power.

4. Threat of substitute product: moderate threat from alternative technologies

like hydrogen fuel cell vehicles and biofuels.

5. Intensity of competitive rivalry: high rivalry among established automakers

and new entrants, leading to price competition, product innovation.
THANK
YOU