Using the recommendation that you provided in Milestone One, you will develop a strategy to implement the innovation and get ahea
Overview
Using the recommendation that you provided in Milestone One, you will develop a strategy to implement the innovation and get ahead in the marketplace.
Scenario
You work as a middle manager for one of the top U.S. producers of luxury and mass-market automobiles and trucks. You are now leading a cross-functional team to move forward with the company initiative. To remain a viable competitor and meet the demands of consumers’ desire for technology, the company’s chief technology officer (CTO) has decided to implement the internet of things (IoT) into its product line.
In Milestone One, you and your cross-functional team looked at risks and benefits of each innovation option, competitors in the market, and the company’s internal capability for moving forward with the innovation. After doing this analysis, you presented your recommendation to various stakeholders about how to proceed. You chose one of the following:
- Design a completely new product line, based on the recent technology (discontinuous innovation)
or
- Add recent technology features into one model and then incrementally into the broader product line (incremental innovation)
The CTO has accepted your recommendation. Now you are ready to develop a strategy for taking the innovation to market. In order to develop a strategy, you will need to look at your competitors’ relative strengths in the current marketplace, to understand how the company compares to your competitors, and to identify the total market and the market’s annual growth rate. Finally, you also need to share your thoughts on how to respond to changes in business conditions. Although no one can predict what is going to happen, it is important to think about how flexible your plan is in order to meet unexpected conditions.
Prompt
Using the recommendation you provided in Milestone One, develop a strategic plan to implement the innovation and gain competitive advantage. Use the Sales Forecast, Comparative Growth Data and Comparative Operating Statistics to complete this milestone.
Strategic Plan
- Analyze the competitors’ relative strengths in the marketplace.
Write a short paragraph describing the growth rate of each competitor. You will get the solution from the comparative growth data sheet.
How much of the market does each competitor now own? Do you see a trend of gaining or losing market share? Present your findings using Power BI.Perform your analysis for the cars and trucks category. Create pie charts using columns C and F from the comparative growth Excel sheet in Power BI.
Perform your analysis for the connected cars and trucks category. Create pie charts using columns H and K from the comparative growth Excel sheet in Power BI.
Determine each competitor’s financial strength by looking at their comparative operating data.
- Explain how your company’s market share compares to your competitors’.
Is your company gaining or losing market share? Expand on the analysis done in Task 1 above and explain the major factors behind the change in market share.
What is your company’s growth potential in the industry?
How do your company’s financials look compared to your competitors’?
- Identify future potential total available market (TAM) and growth for each chosen product/service and technology.
What is the TAM for cars and light trucks?
What is the TAM for IoT-connected cars and light trucks?
What is the projected compound annual growth rate (CAGR) for cars and light trucks?
What is the projected CAGR for IoT-connected cars and light trucks?
Identify the fastest-growing competitor.
- Identify ways to adjust if business conditions change.
What can you do if your customers are slow to respond (buy) the innovation?
What can you do if one competitor is overtaking all the others, including your company?
- Describe the steps your company needs to take from concept outline to launch. Consider your learning from the previous two modules to ensure the steps are easy to understand for your team.
What is the size of development that will be required?
Will you require additional capital and personnel?
How would you approach determining the timeline from the beginning of development until initial product launch?
Guidelines for Submission
Strategic Plan
Submit a Word document of 5 pages, devoting 1 page to each critical element described above. Include a graphic using Power BI for competitors’ relative strengths (p. 1). Place the graphic at the top of the page with bullets underneath. Sources should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations.
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Markets and Competitors | Annual Cars & Light Trucks Revenue in 2020 (billions) TAM | Market share percentage for cars and trucks now | Projected CAGR over the next 10 years | Projected revenues in 2030 (billions) | Market share percentage for cars and trucks in 2030 | Global Market for Connected Cars & Light Trucks (billions) TAM | Market share percentage for connected cars and trucks now | CAGR over next 10 years | Projected Conencted Car Revenues (billions) in 2030 | Market share percentage for connected cars and trucks in 2030 |
Global | $ 3,227.70 | 100% | 4.10% | $ 4,810.0 | 100% | 53.9 | 100% | 25.20% | $ 510.07 | 100% |
Your Company | $ 187.10 | 5.80% | 3.10% | $ 254.2 | 5.28% | 3.83 | 7.10% | 10.20% | $ 10.11 | 1.98% |
BMW | $ 126.10 | 3.91% | 3.70% | $ 181.5 | 3.77% | 1.62 | 3.00% | 25.50% | $ 15.67 | 3.07% |
Toyota | $ 275.40 | 8.53% | 3.90% | $ 404.5 | 8.41% | 4.80 | 8.90% | 24.80% | $ 43.97 | 8.62% |
VW | $ 282.90 | 8.76% | 4.30% | $ 433.1 | 9.00% | 8.36 | 15.50% | 23.20% | $ 67.30 | 13.19% |
Note for student: Projected Global revenue for in-car connected services by 2030: $81.1 Billion | ||||||||||
,
Sales Growth of Whole Market
Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
Your Company | 187.1 | 192.9001 | 198.8800031 | 205.0452831961 | 211.4016869752 | 217.9551392714 | 224.7117485888 | 231.6778127951 | 238.8598249917 | 246.2644795665 | 253.898678433 |
BMW | 126.1 | 130.7657 | 135.6040309 | 140.6213800433 | 145.8243711049 | 151.2198728358 | 156.8150081307 | 162.6171634315 | 168.6339984785 | 174.8734564222 | 181.3437743098 |
Toyota | 275.4 | 286.1406 | 297.3000834 | 308.8947866526 | 320.9416833321 | 333.458408982 | 346.4632869323 | 359.9753551227 | 374.0143939724 | 388.6009553374 | 403.7563925955 |
VW | 282.9 | 295.0647 | 307.7524821 | 320.9858388303 | 334.7882299 | 349.1841237857 | 364.1990411085 | 379.8595998762 | 396.1935626708 | 413.2298858657 | 430.9987709579 |
Sales Growth of the Whole Market
Your Company 187.1 192.90009999999998 198.88000309999995 205.04528319609994 211.40168697517902 217.95513927140956 224.71174858882324 231.67781279507673 238.85982499172408 246.26447956646751 253.89867843302798 BMW 126.1 130.76569999999998 135.60403089999997 140.62138004329995 145.82437110490204 151.21987283578341 156.81500813070738 162.61716343154353 168.63399847851062 174.8734564222155 181.34377430983747 Toyota 275.39999999999998 286.14059999999995 297.30008339999995 308.89478665259992 320.9416833320513 333.45840898200129 346.4632869322993 359.97535512265893 374.01439397244258 388.60095533736779 403.75639259552509 VW 282.89999999999998 295.06469999999996 307.75248209999995 320.98583883029994 334.78822990000282 349.18412378570292 364.19904110848813 379.85959987615308 396.19356267082765 413.22988586567322 430.99877095789714
Sales Growth Connected Veh. Mar
Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
Your Company | 3.8 | 4.1876 | 4.6147352 | 5.0854381904 | 5.6041528858 | 6.1757764802 | 6.8057056812 | 7.4998876606 | 8.264876202 | 9.1078935746 | 10.0368987192 |
BMW | 1.6 | 2.008 | 2.52004 | 3.1626502 | 3.969126001 | 4.9812531313 | 6.2514726797 | 7.8455982131 | 9.8462257574 | 12.3570133255 | 15.5080517235 |
Toyota | 4.8 | 5.9904 | 7.4760192 | 9.3300719616 | 11.6439298081 | 14.5316244005 | 18.1354672518 | 22.6330631302 | 28.2460627865 | 35.2510863576 | 43.9933557743 |
VW | 8.4 | 10.3488 | 12.7497216 | 15.7076570112 | 19.3518334378 | 23.8414587954 | 29.3726772359 | 36.1871383546 | 44.5825544529 | 54.925707086 | 67.6684711299 |