6-1 Milestone Two Strategic Plan
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6-1 Milestone Two: Strategic Plan
Stacia Benton
Southern New Hampshire University
MBA 580 Innov/Strat High-Perform Orgs
January 18, 2024
2
6-1 Milestone Two: Strategic Plan
Competitors’ Relative Strengths
Figure 1.1: Cars and Trucks Comparative Growth
Figure 1.1 gives us a broad overview of the market share of our company and our competitors in the car and truck industry. The figure compares the market share that we have now compared to the market share that we and our competitors are expected to have in 2030. Specific to car and trucks (not connected), our competitors market share is as follows:
Volkswagen currently holds 8.77% of the market share, with an anticipated growth to 9% in 2030
Toyota currently holds 8.54% of the market share, with an anticipated decrease to 8.42% in 2030
BMW, which currently holds about 3.91% of the market share now is anticipated to decrease to 3.77% in 2030
(
MBA 580 Comparative Growth Data
, n.d.)
3
6-1 Milestone Two: Strategic Plan
Figure 1.2: Connected Cars and Trucks Comparative Growth
Figure 1.2 provides us with the same broad overview of comparative growth for us and our competitors but for the connected cars and trucks segment of the industry. Overall, each of our direct competitors are expected to see a decrease in market share in the connected car and truck industry in 2030 compared to its market share now, while our company is expected to see a
small increase. The other players in the market collectively are expected to gain more market share by 2030.
Volkswagen is expected to see a decrease from 15.5% to 13.2% in 2030
Toyota, which currently holds 8.9% in market share is also expected to see a decrease to 8.6%
BMW currently holds 3.7% in market share in connected cars and trucks but is expected to see a decrease to 3.1% in 2030
The Global Market minus our company and the above-mentioned competitors currently hold 65.5% of the market share but is expected to grow to 73.3% in 2030
(
MBA 580 Comparative Growth Data
, n.d.)
While reviewing our competitors’ comparative growth, we must also consider each competitor’s current financial standing. Volkswagen, our strongest competitor, is currently operating with a revenue of $282.9 billion and a net income of $16.1 billion. BMW is currently operating with a revenue of $126.1 billion and a net income of $6.1 billion. Toyota, who brings in more income overall, is sitting at $275.4 billion in revenue dollars and $19.7 billion in net income. Toyota also has more equity and a larger gap in assets and liabilities, making Toyota the stronger performer financially. (
MBA 580 Comparative Operating Statistics
, n.d.)
4
6-1 Milestone Two: Strategic Plan
Company’s Market Share
Currently, our company is losing market share in the non-connected cars and trucks industry when we compare the market share now to that of 2030. Our company holds 5.8% of the market share. In 2030, we anticipate having 5.29% of the market share. While the decrease in
market share may seem insignificant, it does not reflect the goal of the company to become a leader in the industry. When we review the market share data for connected cars and trucks, we currently hold a market share of 7.1%, third behind VW and Toyota and we anticipate having 5.29% of the market share in 2030 (
MBA 580 Comparative Growth Data
, n.d.). Just as our direct competitors, we anticipate a decrease in market share in the connected cars and trucks industry due to the increase share from the global market. This could potentially mean that there are new players entering the industry that have homed in our IoT and have found faster, more cost efficient and more appealing ways to innovate their vehicles that have increased their sales and market share. According to Fleet Management Weekly, Hyundai, Kia, Ford, and Continental are becoming more diverse in their innovation and are poised to make an impact in the connected car
and truck industry in the future (Shedron, 2023).
As new companies enter the connected car and truck industry, this may pose a threat to our company, however, there is much opportunity for us to grow and expand through increased innovation efforts. Compared to our closest competitor BMW, we are projected to surpass them in sales in non-connected cars and trucks over the next 10 years, while we still have a way to go in connected cars and trucks. Financially, compared to our competitors, our company is third in revenue behind VM and Toyota, bringing in around $187 billion in revenue, but we are last in net
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