Analyze quantitative and qualitative data to solve problems and make decisions that impact organizations and their stakeholders Scenario You have been asked to present yo

BUS 225 Milestone One Template

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Executive Summary

[Date]

Description of Problem

There is a propensity for market trends to be sensitive to rapid swings, which could potentially have a negative impact on the results that were intended. The outbreak of COVID-19, which rendered commercial systems in every region of the world inoperable, was the most significant market upheaval that has occurred in the past five years. In order to survive the pandemic and suffer the negative repercussions, business owners and management had to rethink their strategic approaches. This was necessary because businesses were forced to close and prospective customers were forced to comply with stringent safety measures in order to be safe. The automotive industry, along with a great many others, was forced to adjust to the dramatic shifts in the market and devise a variety of new strategies in order to do so. According to the data that was gathered for sales income, the number of units sold experienced a 14.9 percent decrease in the year 2020. The evolution of the industry has sparked novel concepts from a variety of different companies.

Description of the Current U.S. Automotive Industry

An assessment of the automobile industry's current trend is necessary before focusing on a profitable market area that the firm may take advantage of. The automobile industry is one of the world’s biggest, with an estimated annual sales volume of 17.2 million vehicles. Automobile manufacturers and suppliers benefit from improved production levels and a strong local market by striving to provide cars of the highest quality to meet the diverse demands of their customers.

It is widely accepted that the four trends will reinforce and accelerate each other, and that the automobile sector is ready for change. There is still no comprehensive view of how the sector will look in 10 to 15 years as a consequence of these developments, despite the universal consensus that game-changing upheaval is now here. Thus, our eight major viewpoints on the "2030 automotive revolution" attempt to provide scenarios about what type of changes are coming and how they will influence existing car makers and suppliers, possible new players and regulators, consumers and the automotive value chain (Li & Ibanez-Guzman, 2020).

Current Automotive Market Trends

New business models, such as shared mobility, connection services, and feature upgrades, have the potential to increase automotive revenue by 30 percent. The vehicle industry's income stream will be greatly broadened and diversified as a consequence of on-demand mobility services and data-driven services. This may produce an extra $1.5 trillion in income by 2030, representing a 30 percent increase over the $5.2 trillion earned in 2015 by traditional vehicle sales and aftermarket products/services. In addition, this is a 50 percent increase over the $3.5 trillion earned in 2015.

Even while the trend toward shared mobility continues to gain strength, it is anticipated that new vehicle sales will expand, although at a slower rate of roughly 2 percent annually. According to the assessments of individuals who work in the automotive industry, the total number of vehicles sold worldwide will continue to expand, but the annual growth rate is anticipated to decrease from the average of the prior five years, which was 3.6%, to about 2% by 2030. This decline is due to a mix of causes, including macroeconomic conditions and the growth of innovative mobility services like e-hailing and automobile sharing (Yang et al, 2020).

A considerable percentage of cities and suburbs in Europe and North America display the characteristics of dense zones with a large and well-established car base, according to the conclusions of a comprehensive analysis. It is probable that private car sales would decline as a consequence of the greater usage and wear and tear caused by increasing mobility. However, it is expected that shared vehicle sales would grow, which will more than offset the projected fall in sales of private autos.

Description of the New Industry

The new industry that is chosen is motorcycle industry. Due to the fact that most people purchase motorcycles not only as a method of transportation but also as a kind of luxury in today's market, the business that deals with the selling of motorcycle engines is one that brings in a lot of revenue. According to the findings of a study, the motorcycle sector is expected to grow from its current value of $38.9 million in 2019 to $51.1 million in 2020. Through the year 2027, it is predicted that the worldwide market for motorcycles would expand at a compound yearly growth rate of 48.4 percent. Since 2016, the motorcycle business has been rapidly growing in response to an increasing demand from the general public for a means of transportation that is more reliable and efficient. As a result of design and other technical developments, two-wheeler motorcyclists have become more popular, which has led to an increase in revenue for the industry. The number of people looking to buy motorbikes is growing, and one reason for this is because cities are becoming more congested.

Current Market Trends in the New Industry

The increase in availability of motorcycles and motorcycle components may be attributed to the robust demand for these products. It is projected that the vast majority of customers in the converging market would use fuel-efficient bikes often for business-related purposes.

Appendix A Explanation from Porter’s Five Forces Analysis of the New Industry

Although other companies have a strong brand, customers may find it difficult to move to them due to the high expense of converting to a different brand. To overcome this, the firm could supply high-quality items and also explore collaborating with high-end companies in order to attract new customers while yet keeping pricing reasonable. This presents a potential for expansion for suppliers, but acquiring new customers may be a struggle for them because of this. The level of competition is strong, in part due to the existence of large businesses with substantial marketing budgets. In spite of the high costs charged by the major brands, it is simple to enter the market and expand one's business there. Because motorcycles are favored over cars and trains in many areas of the globe, the threat of a replacement is minimal. Due to the high cost of entrance in the industry, there are relatively few new firms being formed, hence the threat of new entrants is minimal (Stoma et al, 2021).

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