Transformation of the Automobile Industry - Case Study Example

2000 Word Exam s - Strategic Management Analysis Better Place Automobile Industry 2000 Word Exam s - Strategic Management Analysis Mission, Vision, and Stakeholders The better space automobile is a company that was introduced in an attempt to shift transportation to electric engines from then fuel combustion engines. The move was considered to develop environmentally friendly engines and the use of the renewable energy sources. Developing such technologies required well-coordinated stakeholders including the developers, consumers, and efficient management. Transformation of the automobile industry was massive projects and has remain a massive project that also requires an effective business model that transforms the automobile business itself and the personal transformation including transformation of the mindset of the consumers (Etzion and Struben, 2011; Pg. 06). Moreover, it has remained the responsibility of the stakeholders especially the company marketing team to ensure that the technology is accepted and adopted globally by increasing the market place of the product. Notably, in the year 2005, there was a stakeholder meeting that met over the question on how to make the world a better place by the year 2020. At this point, different stakeholders had already armed themselves with multinational software that aimed at enhancing the development of the new technology engines. At this primary point, Agassi was the president to the Production and Technology group that was based in Germany. It should also be noted that the success of this technological development in the engine has been a success due to the involvement of many countries and individuals with different aspiration but with the same goals and objectives of environmentally friendly engines and the use of renewable resources (Westbrook, 2001; Pg. 81). Some of the stakeholders of the Better Place industry emanated from Germany, Israel, and United States among other numerous nations and continents. Additionally, for the success of the program, the better place stakeholders created a linkage with other car, utility, battery, and consumer companies. These linkages were created to spread the adoption of the idea. Specially, the stakeholders wanted the linkages to create the widespread of EVs. According to Agassi, adoption of EVs among the consumers would facilitate the EVs paradigm with limited mobility. However, other quarters believed that a recognized shift was only possible with the creation of capacity batteries. Nonetheless, the Agassi’s idea led to the creation of EV based solution that elevated driving profiles that are highly implementable in an off the shelf technology. It should be noted that different technological ideas of different contributors of the electric engine powered automobiles led to a creation of effective car that are environmentally friendly and that use renewable resources. It should be noted that the stakeholders come in with different ideas. For instance, Agassi wanted re-engineering of the entire fuel enabled cars while other stakeholders only required only re-engineering of the engine (Etzion and Struben, 2011; Pg. 18). These different ideas were harmonized, and new, efficient, and effective automobile was introduced in the transportation sector. Therefore, different roles and contributions of different and distinct stakeholders have defined the success of the better space automobile industry alongside its vision and mission. Moreover, the continued involvement of other players including different market places in different continents and their different innovative and marketing strategies will ensure that the market place will continue meeting its vision as it fulfills its mission. Industry and Scenario Analyses The better place industry has numerous opportunities to explore towards developing and meeting its goals and objectives. Currently, there are numerous global concerns of the intensive use of bio fuels since they have diverse effects to the environment. Additionally, there are concerns of the depletion of such resources; thus, there are great concerns on their future availabilities. Therefore, connecting the two concerns, the better place industry has the greatest opportunities in shifting the mindsets of the car manufacturers and consumers to their production line and sales (Etzion and Struben, 2011; Pg. 21). The better place automobiles are intended to be electric engine driven; this implies that they will never be producing combustible fuel by products into the environment. Moreover, such electric enabled engines are rechargeable; thus, the engine power is renewable without any substantial reduction in the resources used. The renewability of the resources will enable the sustainability of the originally bio resources that are used to fuel automobiles. Different generation as still intending to use cars among other automobiles; thus, the better place automobile industry has a future to market place to sell its products. On the other hand, the world leadership is concerned greatly on the environmental friendly measures; thus, the introduction and use of such environmentally friendly engines are highly welcomed within the global domain. Additionally, the introduction of the electric enabled automobile engines is a new technology within the automobile or transport sector. It is like introducing a new product in the market (Hantula, and Voege, 2010; Pg. 122). Typically, introduction of new ideas and products in the market usually lead to shift in the consumers’ interest to the new products. In other words, these new engine types are unique other than being efficient and reliable, they will attract a wider market; thus, the better place industry has a brighter future within the automobile market place. However, the change may not be shift as may be intended by the better place stakeholder and management (FAIZ et al., 1996; Pg. 87). Many consumers are usually never ready to buy products that are under test; therefore, the transformation of the automobile from the fuel engines to electric engines will be a slow transition that will be pegged purely on the initial or primary performance of the first products released in the market. Therefore, it will be upon better place industry to ensure that all the products it produces into the market have no defects and any performance failure to attract and maintain consumers’ confidence. Additionally, despite the performance, reliability and effectiveness of these newly re-engineered automobiles, there are still uncertainties of their performance in the market. Consumers are ever difficult to conform to changes; thus, consumption of these new automobiles will still remain a challenge to the manufacturers (Etzion and Struben, 2011; Pg. 09). The other factor that may affect consumers’ decision to the new automobile consumption may be pricing. This new automobile technology is likely to be expensive; thus, it is upon the manufacturers to settle on reasonable prices to that are be affordable by consumers of all financial strengths. On this point, they should produce different automobiles with different engine capacities. Resources and Capabilities The growing technology has provided a platform for the manufacture of the sophisticated engines. Numerous technological equipment and techniques that can be used to store electric energy to be used to propel the car engines are currently available. Electric supplies are all over, and the same can be used by electrified engines automobiles to charge these cars at any given points (Saxena, 2009; Pg. 386). However, the cars once charged should stand long usage so that the users never run out of charge unexpectedly (Anderson and Anderson, 2010; Pg. 175). Additionally, the developers of these engines must consider installing recharging mechanisms where the engines are charging themselves while in use. Moreover, there may also be use of solar charging systems. All these resources must be adopted to enhance and support the direct electric charging system that the automobiles are solely designed to charge their engine systems. Notably, the availability of these technological ideas and materials surely makes that development and execution possible and easy. Additionally, it should be noted that entire models of the automobiles will never change, only the mechanical fitness of the engine and the body. The availability of the solar charging systems is actually a boost to the industry since when well adopted, such re-engineered automobile engines will do long distances with disappointed the users (Etzion and Struben, 2011; Pg. 20). Moreover, numerous nations and governments among other leaderships are providing support to the environmentally friendly automobiles among other resources; therefore, from such support, the better place automobile industry enjoys immense resources including financial aids to work on its electrified engine projects (Sandalow, 2009; Pg. 77). In fact, numerous lighter but effective and sufficient materials with high performance that is readily available for the better place industry. These materials can be used to make standard bodies of these automobiles. Moreover, they can make classy and slick and attractive automobiles. On the other side, these materials are safe for use by consumers. It should be noted, for their light features, they are efficient and suitable for building racing cars (Mom, 2004; Pg. 79). For instance, the better place industry uses carbon materials as their primary materials. Notably, these materials are known to be safe and can withstand high velocity impacts; thereby, making them safe. These small chip materials have been effective in making classy cars that have attained reputable remarks all over Europe. Therefore, the availability of the materials, their performance, and capability makes better place industry at a good place for intense performance. Additionally, being not too heavy, the electric re-engineered engines are effectively performing on the light bodies of the automobiles that they push since such bodies are made from lighter materials. It is also worth noting that these materials are environmentally friendly and keep the better place company on the move since they are 100 percent recyclable (Etzion and Struben, 2011; Pg. 27). The availability of resources for re- engineering automobiles and the capabilities of these materials to their high performance are the factors that influence effective performance and future performance of the better place automobile industry. Business and Corporation Strategies The business strategies of the better place automobile industry include selling its hybrid automobiles across the globe. The best way to achieve its strategies is through sending such cars to globally and different markets so that different consumers may have hand on effects of these new automobile products. For instance, for different countries that they have sent the electric cars, numerous drivers have promised to buy such cars for the next car purchase. Some of the countries that better place has taken its cars directly include Israel, Denmark, United States, and Kenya among other nation. Numerous nations and personalities have embraced this move since they relate it to new energy revolution. Notably, the industry is still planning to move to other nations. Other than moving the re-engineered electric engines all over the world, the better place automobile industry aims at hitting high sales at all time; however, it products seem to be expensive to the consumers compared to other automobiles driven by fuel powered engines. Making the electric engines and lighter bodies (bodies made from lighter nano materials) can never be cheap in pricing; otherwise, the better place automobiles will be running at great losses (Etzion and Struben, 2011; Pg. 33). However, it remains the strategy of the better place industry to sell its automobile products to as many customers as possible. Achieving this aims will require intensive sensitize the society of the wider and vital need of the use of such cars. Notably, the consumers must note that the prices of the better place cars are nothing compared to the pollution effects contributed for by the bio fuel powered engines. Other than the intensive sales of the electric automobile powered engines, the better place automobiles aims at expanding and spreading its production to different parts of the world. This will ensure that numerous automobiles are produced and availed to consumers so that the company is not classified as insufficient in its production and supply (Gilles, 2004; Pg. 142). Moreover, different nations are looking forwards for the clean energy as the alternative energy source for their production and supply sectors for the year 2030. At this point, better place automobile industry aims at having enough production that will provide sufficient supply to the consumers. Additionally, nearly all the consumers shall have known the benefits and usability of the electric powered engines. Moreover, the better place automobile industry is working on networks to reach many consumers and markets as possible across the global market. In essence, the industry is also producing other clean energy products to the consumers including batteries (Komiyama and Kraines, 2008; Pg. 57). Nonetheless, there are other mechanisms including developing new technologies that aim at produce efficient and clean products, but at lower prices. For instance, “ERGOs and utilities to reap the greatest benefit from the model, ERGO software would need to be synchronized with utility software, allowing the local grid to determine the optimal allocation of energy to vehicles during peak and off peak hours. Better Place had begun developing software to track data, communicate with the grid and dispense electricity as demand fluctuated, thus minimizing costly spikes in electricity demand (Etzion and Struben, 2011; Pg. 15).” Among other business and corporate strategies, implementing these strategies effectively will ensure that better place automobile industry performs at par with other renowned international automobile and clean energy industries. References ANDERSON, C. D., & ANDERSON, J. (2010). Electric and Hybrid Cars a History. Jefferson, McFarland & Co., Publishers. ETZION, D. & STRUBEN, J. (2011). Oikos free case collection Etzion / Struben. Better Place: Shifting Paradigms in the Automotive Industry. 1st Place. Better Place: Shifting Paradigms in the Automotive Industry. Retrieved January 3, 2014, from http://oikos-international.org/wp-content/uploads/2013/10/oikos_Cases_2011_Better_Place.pdf FAIZ, A., WEAVER, C. S., WALSH, M. P., & GAUTAM, S. P. (1996). Air pollution from motor vehicles; standards and technologies for controlling emissions. Washington, D.C., The World Bank. GILLES, T. (2004). Automotive service: inspection, maintenance, and repair. Clifton Park, NY, Delmar/Thomson Learning. HANTULA, R., & VOEGE, D. (2010). How do hybrid cars work? New York, Chelsea Clubhouse. KOMIYAMA, H., & KRAINES, S. (2008). Vision 2050: roadmap for a sustainable earth. Tokyo, Springer. MOM, G. (2004). The electric vehicle: technology and expectations in the automobile age. Baltimore [u.a.], Johns Hopkins Univ. Press. SANDALOW, D. (2009). Plug-in electric vehicles what role for Washington? Washington, D.C., Brookings Institution Press. SAXENA, S. K. (2009). Automobile engineering. New Delhi, University Science Press. WESTBROOK, M. H. (2001). The electric car: development and future of battery, hybrid and fuel-cell cars. London, Institution of Electrical Engineers. Read More