MBA 580 – Benchmark

Overview

In Milestone Two, you recommended a strategic plan to the organization from the course scenario for the IoT innovation project. Now that senior management of this company has approved your recommendation, your task is to recommend ways the organization can better support innovation. Remember that your perspective is still that of a middle manager for one of the top U.S. producers of luxury and mass-market automobiles and trucks.

In this assignment, you will read a case study and write a report that compares the course scenario organization’s structure and innovation culture with those of Skunk Works. This report may help you identify ways to improve your organizational structure and culture in an effort to better support innovation.

Prompt

Using the information about the company in the

Organization Overview

document and referring to the Skunk Works case study in this module’s resources, compare the organization from the course scenario with Skunk Works and identify differences in organizational structure and culture related to innovation. Your comparison should include the following points:

Organizational Structure: Compare the organization’s structure with that of the Skunk Works innovation team at Lockheed. Identify the points of similarity and difference and discuss their implications for an organization’s overall ability to innovate.

Shared Vision: Compare the shared vision of the organization and that of the Skunk Works innovation team. Identify the points of similarity and difference and discuss their implications for an organization’s overall ability to innovate.

Creative Climate: Compare the creative climate of the organization and that of the Skunk Works innovation team. Identify the points of similarity and difference and discuss their implications for an organization’s overall ability to innovate.

• Effectiveness of Teamwork: Compare the effectiveness of teamwork in the organization and the Skunk Works innovation team. Identify the points of similarity and difference and discuss their implications for an organization’s overall ability to innovate.

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Strategic Plan
Courtney Roberts
September 8, 2024
Strategic Plan
Introduction
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The strategic analysis is designed to determine the overall market state concerning
rivals’ capabilities, market share fluctuations, financial stand, and prospects for growth in the
cars and trucks sector. By evaluating the Power BI data and the comparative growth sheets,
this study reveals trends and strategies based on current market positioning and future growth
plans necessary to achieve better competitiveness. The assessment also involves evaluating
the total available market (TAM) of standard and IoT-connected vehicles, with growth rates
forecasted alongside identifying emerging rapid growth competitors. This strategic plan aims
to enable this company to manage a dynamic business environment and address threats that
may hinder the company from launching new products and services, providing the company
with a more robust market base.
Competitors’ Relative Strengths in the Marketplace
The Power BI data analysis reveals that the “Rest of the Market” currently dominates
the cars and trucks sector with a share of 72.98%. This large segment reflects a fragmented
market where many smaller players collectively hold a significant portion. According to the
data, VW controls 8.77% of the market, maintaining a steady but strong presence. Toyota
follows closely with 8.54% of the market, reflecting its robust positioning despite signs of
minor decline. My company holds 5.8%, revealing a market share location of moderate
competitiveness although sensitive to market hegemonies of dominant competitors. The
BMW company holds the lowest, being as low as 3.91 %, which can suggest that this
company might focus on specific subsectors or apply a more selective approach to the whole
picture of the construction sector.
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Comparing the market share forecast for 2030, the “Rest of the Market” is expected to
capture 73.52%, which is a small growth, and there is an indication that the overall market
structure may not significantly change but instead may shift slightly among the various
operating players. According to the research, the car maker VW is expected to have a slight
rise, up to 9 %, to remain steady, showing moderate growth and stability for the brand.
Toyota needs to lower its growth rate slightly and may experience an 8.42 %, which could be
interpreted as issues with maintaining the competitive advantage or reacting to change. My
company is projected to decrease slightly to 5.29%, suggesting it might face competition
forces or market factors affecting its share. From the study conducted by Richert and Dudek
(2023), there will be a slight boost because BMW is forecasted to gain a little more, with a
better percentage of 3.77, which shows a slight increase in market presence. However, still,
this is the smallest among the key competitors.
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Financial Strength and Market Share Comparison
Financial strength is another factor that strongly determines the changes in market
share. The relative operating data reveal that VW is in a solid financial position, affirming its
position to defend and expand its market share. VW’s solid balance sheet probably leads to its
ability to invest in R&D marketing and customer relationship management to maintain its
vital competitive position in the industry. On the other hand, Toyota forms a significant
market share and is gradually reducing; this may indicate some economic or managerial
problems hindering it from experiencing the new market setting (Liu, 2023). Another reason
could be a loss of market share, as it may suggest more competition or consumers shifting
their preferences. However, Toyota has not been able to respond adequately.
Tentatively, my company’s market share has also been slightly reduced. However, it
still maintains a reasonable position in the market. This may suggest that while the company
has a strong foundation, it cannot contend with its better-funded counterparts, such as VW
and Toyota. According to the research, this minor decline might be due to factors such as
inadequate capital to be committed to purchase new technology or low capital to fund
marketing strategies. Although BMW has the smallest market share, it has shown a slight
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growth as it is perhaps using its financial resources more strategically in a particular segment
or more focused strategies in a specific class of buyers.
In terms of the analysis of my company’s finances compared to that of competitors,
there is potential for improvement, namely if the company can gain more funds to allocate to
areas of spending like research and development and advertising. It would assist it in
competing against more significant players who have more extensive cash resources available
to them. There are great opportunities for the growth of the company in the industry and
expanded segments such as connected automobiles. However, it implies concentrated work
on the strengthening of financial performances and the development of adequate positions.
Future Potential Total Available Market (TAM) and Growth
The total available market (TAM) of cars and light trucks is projected to rise
gradually. According to Anderhofstadt and Spinler (2020), this is due to increasing demand in
developing countries with enhancements in automotive design and mass production and the
democratization of automobiles as more and more people can afford them now. The global
automotive total addressable market for IoT-connected car and light truck sales has been
estimated to rise mainly due to consumer demands for connectivity and improvements in selfdriving vehicle technology. Car and light truck: According to this estimate, the compound
annual growth rate seems to be projected at 3.5%. The compound annual growth rate for
Information Technology-connected cars and light trucks is projected to be much higher at
about 7.8%. VW’s growth rate is the most rapid, and the company’s market share is slightly
but steadily increasing.
This type of growth shows the efficiency of the strategy, which utilizes current market
trends and potential future novelties (Jadoon et al., 2020). VW has the highest growth rate
among all, and it can be noted that VW has had a slight but gradual rise in market share. This
type of growth indicates the effectiveness of the proposed strategy, which exploits the
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presence of the current trends and possibly future additions to them (Jadoon et al., 2020).
VW’s solvency is very impressive, and it allows the company to invest in innovations and
expansion in the IoT-connected vehicles market, which is forecasted to advance in the
following years.
Adjusting to Changing Business Conditions
In case the business conditions of the industry alter and consumers do not embrace
innovations, the company could consider optimizing the existing value delivery through
refining the benefits of cost leadership, easy-to-use features, and comprehensive customer
awareness creation. From studies, it can be concluded that when customers are educated,
there can be a rise in the usage of new technologies in cases where the consumers may be
ignorant of the benefits of new products (Hoyer et al., 2020). For example, if consumers are
reluctant to buy connected cars, the company can develop advertisements that explain the
efficiency gain, safety advancements, and cost reduction of connected cars.
A more aggressive strategy would be required when one competitor outcompetes all
competitors, including my company. This could mean pursuing alliances or even exploring
opportunities to acquire competitors or merge if the aim is to improve the market position
quickly. According to the strategic analysis, these actions may enable the rapid acquisition of
new technologies, increased customer base, and efficiency of operations. Focusing on
differentiation by uniquely extending the product portfolio or providing a particular service
can be a tool to regain or at least sustain the company’s market share.
Steps from Concept Outline to Launch
For my company to successfully convert from a concept to an actual product, the
following are the proper steps: The first and foremost step is to conduct a market research
study to ensure the concept is valid. This involves customer needs, market changes, trends,
and competition analysis. According to the benchmarking of different industries, the
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following step for the management and the new product development team is to create a
detailed product development plan containing the technical solution requirements, the time
frame, and the cost estimates (Elghaish et al., 2019). In this case, defining the scope of the
development work needed becomes essential, and it can involve the participation of other
functions such as R&D, marketing, and supply chain.
New funds and human resources may be required, mainly if the development process
entails a new product or function not already existing in the organization. As stated by
Chofreh et al. (2020), one of the activities that should take part in the planning phase is a
precise evaluation of the necessary amount of capital, and attempts should be made to obtain
the necessary funds either through the redistribution of internal resources or through finding
investors or credit organizations. Deciding on the time from development to the product’s
launch is uncertain and thus must be designed flexibly. Several key points should be stressed
when considering the development of the project, and they are the following: This should be
followed up by constant reviews and iterations to adjust to market requirements and
feedback. Strategizing development research indicates that choosing an iterative development
cycle assists in minimizing risks and keeps the product market appropriate and competitive
when released.
Conclusion
This paper’s assessment shows that the market remains relatively consolidated and
stable, with the ‘Rest of the Market’ category dominant and VW and Toyota occupying sizable
yet fluctuating market shares. The case with my company is that, while holding a moderate
market share, the company struggles to challenge financially mightier competitors. The
predicted increase in IoT-connected cars and trucks baggage can be deemed an opportunity
for critical players interested in boosting innovation and strategic promotion. This should
require the company to underlying its financial capacity, improve the current product
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differentiation formula, and devise ways of countering change in the market. In this way, the
company will be able to position itself for growth and stability in various market segments,
including both mature ones and new markets that are yet to be explored because the industry
is constantly growing and evolving.
References
Anderhofstadt, B., & Spinler, S. (2020). Preferences for autonomous and alternative fuelpowered heavy-duty trucks in Germany. Transportation Research Part D: Transport
and Environment, 79(98), 102232. https://doi.org/10.1016/j.trd.2020.102232
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Chofreh, A. G., Goni, F. A., Klemeš, J. J., Malik, M. N., & Khan, H. H. (2020). Development
of guidelines for the implementation of sustainable enterprise resource planning
systems. Journal of Cleaner Production, 244(1), 118655.
https://doi.org/10.1016/j.jclepro.2019.118655
Elghaish, F., Abrishami, S., Abu Samra, S., Gaterell, M., Hosseini, M. R., & Wise, R. (2019).
Cash flow system development framework within integrated project delivery (IPD)
using BIM tools. International Journal of Construction Management, 21(6), 1–16.
https://doi.org/10.1080/15623599.2019.1573477
Hoyer, W. D., Kroschke, M., Schmitt, B., Kraume, K., & Shankar, V. (2020). Transforming
the customer experience through new technologies. Journal of Interactive Marketing,
51(1), 57–71.
Jadoon, G., Ud Din, I., Almogren, A., & Almajed, H. (2020). Smart and agile manufacturing
framework, A case study for the automotive industry. Energies, 13(21), 5766.
https://doi.org/10.3390/en13215766
Liu, Z. (2023). The financial statement analysis of Johnson and Johnson. Highlights in
Business, Economics and Management, 10(4), 149–154.
https://doi.org/10.54097/hbem.v10i.8031
Richert, M., & Dudek, M. (2023). Selected Problems of the Automotive Industry—Material
and Economic Risk. Journal of Risk and Financial Management, 16(8), 368–368.
https://doi.org/10.3390/jrfm16080368