Abstract
In order to analyze the approach of the main automotive players regarding the electrification path each one is following, this report assesses those aspects required for a consistent corporate product strategy. As distinctive differences are found in terms of the scope of products, some boundaries are defined based on the mobility concept, establishing the differentiation of the current automotive business into two separated industries. After analyzing each of the industries, the report focuses on four automotive OEMs and the way they are coping with the competition for profit in each scenario. The paper also analyses and assesses both each OEM strategic choice and business model.
Highlights
In recent decades, the automotive industry has been pointed out largely responsible for the production of greenhouse gases
As most OEMs have already presented their strategies regarding the EV industry, it can be said that the threat of new entrants is already residual
The high power of buyers is a consequence of this status quo
Summary
The definition of the industry in which competition really takes place is important to properly analyze it and to define the good strategies and set-up the business unit boundaries. Mistaking the relevant industry can affect positioning, competitive advantage and profitability. Most of the player’s commitment regarding the development of the EV must be understood as a response to a business opportunity. The approach of the multiple OEMs to this new scenario is diverse and must be analyzed from multiple points of view. While the full EV seems to be the mid-term solution that can satisfy the requirements in consumption and emissions from the authorities, the important drawbacks that it presents have
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