Marketing assignment: Critical analysis on “Extreme Disruption in the automotive industry: a look at the road ahead”
What are the implications of the events/incidents/issues in the article from a marketing perspective and how will these impact (positively or negatively) relevant stakeholders?
Answer:
Summary of key issues
The Article Extreme Disruption in the
automotive industry: a look at the road ahead explored in the marketing
assignment describes the marketing implications of extreme disruption in the
automotive industry. Disruption is hitting on a complete new level, which means
extreme disruption is occurring on various and converging fronts, includes
large investments and a variety of new and existing players. Disruption changed
the method of service and the product finally reaches the consumer, and it
occurs when an organization fills an unmet requirement at a very lower price
and then moves to the mainstream. This havoc of disruption will end up the
manufacturing activities soon if actions will not take place.
Explanations
of Issues’
importance
The critical analysis on the article done in
this marketing assignment examines the marketing implications of extreme
disruption in the automotive industry. Disruption is the term that has been
used too much in recent years. For example, the hotel industry is affected by
Airbnb, the music industry is directly disordered after the launch of Spotify,
TV viewers are affected by Netflix and the Amazon captured the Book market. In
every case, disruption came in the market with some changes and modifications
in the product or service provides to the final consumer (Conlon & Perkins, 2018). The effect on current operators is very
significant.
As well as in the automotive industry,
disruption affects at large. The Australian automotive industry is trying to
make how to achieve the best position itself in the era of this changing
environment. The decline in this industry coming for years, the hike in
Australian manufacturing exactly placed in the mid of 1970s. This automobile
industry did not rearrange, neither by government policies not at a single firm
level by strategic planning for the near future. Dealers and manufacturers
undergo some planned changes at all. Australian industry has to understand the
terrible nature of disruption that faces and to rearrange for the best
opportunities to get them soon (Christensen et.
al., 2015, p. 44-45). The international players of automotive Toyota,
BMW, and Ford are investing their tens of billions of dollars to make their
future position strong. At this point it can be stated herein marketing
assignment that disruption is going on across four levels:
1.
Product itself
2.
Macro trends
3.
Developing industry trends
4.
Necessary changes to business model basics
Product: Updates
in the products have been increasing from last year, such as electric vehicles,
digitally connected. Creating them as linked with the phone with home and
office, new technology with high opportunities for tech players like Samsung,
Google and Facebook in all cars (King &
Baatartogtokh, 2015, p. 77).
Macro trends: The high changes in technology are going on against the backdrop of
several macro trends like digitalization, environmentalism, and urbanization.
These enhance the impact in the manner customers look at cars and their
ownership. The increasing rate of
sharing cars shows benefits in finance, easy congestion, and the environment
also. If this trend continues, then it will change the preference and needs of
customers, when sharing is adopted by the market than real decline shown in
households owning cars.
Industry trends: The major players like Ford and BMW have no longer market; they are
joined by Google, Facebook, Apple, Sony groups of connectivity and technology
respectively.
Business Model: It has been also noted in this marketing assignment that organizations
are starting to see change, with an essential effect on the business model. In
the case of a manufacturer, the changes will take place in marketing
capability, product mix, staff retention, and training. At the dealer level,
the arising disruption needs a response to gibe vital strategic questions (Kumaraswamy et. al., 2018, p 1025-1042).
According to the marketing perspective, I
need to find out that, what are the convergence and investments in the manner
of change. In the words of adding the value from a user-focused position, and
it translates from brand, service, product differentiation and delivery channel
perspective. This above research on marketing assignment showing that the
automotive industry will require thinking, taking steps for changes and working
with planning more than before and specifically active in determining its
strategic direction. It also includes how it will produce value, in creating and
developing new sets of capability, and making new partnerships to grow
successfully in the future.
There is a need for digital technology in
this modern world, but what to do when this technology is getting disrupted. The
development of autonomous and near-autonomous vehicles that can operate and
navigate automatically in many situations made a good impact on the growth of
the automotive industry as well. The artificial intelligence, computer vision,
advanced sensors such as Lidar, Radar, GPS and machine to machine communication
play a positive role in the performance of the car industry Vecchiato (2017) “( 116-128)”.
The readings used from the article to prepare
this marketing assignment signifies that the Australian automotive industry has
to put best efforts to adopt the best strategies and technologies to save the
industry with multiple components and software systems. Innovation in automotive
technology makes a positive and negative impact on society and stakeholders.
Innovation provides global development; enhances objectives of environmental
and social justice, higher productivity, etc. the market share of the company
gets increased, customers are attracted to the new technology, electric
vehicles reduce the pollution spreading in the environment, fast and easy to
reach the destination in less time. On the other side, innovation means
replacing or disrupting current processes, business models, technologies, and this
creates losers and winners (Kumaraswamy et. al.,
2018, p 1025-1042). Due to the development of advanced technology, the
human workforce reduces and creates unemployment, sometimes operations failures
in Vehicles, unwanted consequences due to bad innovations. Changes in society
can be disruptive and made long-term negative impacts on such innovations. It
decreases the prospects for transformative modifications in the future, so
watchfully assess the potential losers of the market and mitigate all negative
effects putting concern on society.
Conclusion
The article examined in the present marketing
assignment describes the picture of the automotive industry of Australia that
was facing certain challenges in growth. The industry has to adopt the best
strategies to overcome such challenges by innovations in technology, latest
products, and service designing as per the demand of consumers, latest trends, effective
business models, acquire firms, partnerships with other organizations, etc. These
methods will increase the market potentiality and attract the customers also. The
government of the country also provides facilities to improve the growth of the
automotive industry. Innovation is the need of modern era and it should be
implementing in every process of cars manufacturing
Reference
Christensen, C. M., Raynor, M. E., & McDonald, R. (2015). Marketing assignment What is a disruptive innovation? Harvard business review, 93(12), 44-5
Conlon, R., & Perkins, J. (2018). Wheels
and deals: The automotive industry in twentieth-century Australia.
Routledge.
King, A. A., & Baatartogtokh,
B. (2015). How useful is the theory of disruptive innovation?. MIT
Sloan Management Review, 57(1), 77.
Kumaraswamy, A., Garud, R.,
& Ansari, S. (2018). Perspectives on disruptive innovations. Journal
of Management Studies, 55(7), 1025-1042.
Vecchiato, R. (2017).
Disruptive innovation, managerial cognition, and technology competition
outcomes. Marketing
assignment Technological Forecasting and
Social Change, 116, 116-128.
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