How automotive firms can better adapt to the shift to electric vehicles

Abstract

In our dynamic world, perpetual change is the norm, with every industry experiencing ongoing technological advancements. These innovations manifest as cost-saving production methods, enhanced customer experiences, and the creation of superior products. The primary goal of any business remains the efficient allocation of resources. Hence, businesses consistently endeavor to revolutionize their production techniques and technology to achieve optimal resource utilization, thereby securing a competitive edge. In an era of fierce competition, these evolutionary shifts and breakthroughs empower enterprises to capture larger market slices, fostering prosperity. Meanwhile, businesses adhering to conventional approaches and outdated technologies find themselves overshadowed, yielding ground to their more progressive counterparts. As a result, they confront the struggle for survival within the market.According to D'Aveni (1998), a renowned authority on hyper-competition, traditional industries have undergone a transformative shift from sluggish and stable oligopolies to landscapes characterized by rapid and intense competitive maneuvers. In this context, competitors strategically employ swift and unorthodox methods to gain an edge unexpectedly. To retain competitiveness, organizations must embrace a culture of continuous innovation, constantly generating fresh sources of competitive advantage to counterbalance rival benefits. Consequently, enterprises find themselves compelled to pursue long-term survival or dominance, relying on a series of transient advantages due to the escalating pace and frequency of adversaries' counteroffensives (D'Aveni, 1998). The prevailing environment's unpredictability and dynamism necessitate companies not only possessing these attribute but also demonstrate the capacity to swiftly adapt to evolving demands within the competitive arena. The persistence of prolonged inertia further endangers a company's viability (Biedenbach and Söderholm, 2008).