Innov/Strat High-Perform Org Week 3 Assignment

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MBA 580 Module One Memo

Terrell McGhee

SNHU

MBA580

Dr. Wisler

3/27/2022

MBA 580 Module One Memo

The company plans to explore its IoT for its trucks and cars to create connected vehicles through sensors in sharing data and reaping the benefits of technology. It means it is the company's strategy for innovation and transition to the future. The need to screen the possible expectations using RWW (Real, win worth it) tool makes the analysis viable.

Feasibility of Product Line (Is it real?)

The need for product change through innovation is viable as IoT is among the trending technologies revolutionizing the industry. People want IoT and in future mainly in helping drivers navigate, see traffic patterns, get alerts about potential delays, free parking lots, and even communicate with other cars while on the road (Gossett, 2019)

The statistics from the market show that IoT-connected cars will grow from $54 billion in 2019 to $510 billion in 2030, which has an industry growth of 4.1%. The company needs to move with existing technologies. The market is available.

The products can be made because the company is already advancing in the industry and its competitors. The company expects to grow at 3.1%, 1%, with the current industry.

The ability of the final products to satisfy the market depends on staying ahead of competitors. For instance, BMW auto manufacturer has higher technical capabilities with IoT, followed by Toyota, Volkswagen, and the companies. Thus, great innovation will lead to maintaining and improving the market share.

The ability of the company to win the market share (Can we win?)

The company products currently have sufficient competitive advantage, which, when not maintained, can be lost to the competitors. For instance, the company enjoys a high annual revenue in cars and trucks than BMW; it has a bigger market share percentage and projected CAGR over the next ten years. The innovations are met with a greater competitive power, mainly considering the expected market share percentages of connected cars and trucks in 2030 being 1.98% for the company while other companies having a significant share shows the expected reaction (Reportlinker, 2020). The company understands the market properly and is a significant player. IoT can revolutionize all the changes and make the outcomes to its advantage if IoT is used properly.

Potential benefits of the company producing the benefits (Is it worth doing?)

The company will benefit greatly from the product change at an acceptable risk because of its resources and capabilities. The company has a substantial market share which expects to move to more connectedness. Thus, the company will potentially benefit from maintaining the market and generating a new one. It is a profitable venture.

Moving to more connectedness makes strategic sense, and one needs to be aware of the market needs and respond with the market. Consumer satisfaction is the biggest input that makes consumers stay, and its made through innovation.

The product fits the company's overall growth strategy as the company can choose either incremental innovation or radical innovation and still satisfy the consumer needs. The senior company management will accept the change as it is already being implemented. It means little work will be needed with the convincing roles.

Reasons Why IoT connected cars are important to the company

IoT and connected cars are essentially important to the company because of the position it places the company in terms of market share. When buying new cars, consumers ant the latest technology, and growth and development bring about new features. The competitors greatly invest in the product change, and the outcomes are revolutionary. The technology is possible to implement as the company has already incorporated it. Thus, it's a matter of strategy.

The competitors are expected to intensify the moves by investing more in the technology and partnering with other companies to intensify the resource reach. Thus, it's expected to be a competitive venture.

Accelerating the move to the development of connected cars will help grow the company as it will change the expected position by 2030, making the company still retain its market share and create room for a wider market reach.

References

Gossett, S. (2019, August 13). IoT in vehicles: A brief overview. Built-In.

Reportlinker. (2020, August 17). The Global Automotive Motors market size is projected to grow from USD 20,321 million in 2020 to USD 25,719 million by 2025, at a CAGR of 4.8%. The global automotive motors market size is projected to grow from USD 20,321 million in 2020 to USD 25,719 million by 2025, at a CAGR of 4.8%. Retrieved March 21, 2022, from https://www.prnewswire.com/news-releases/the-global-automotive-motors-market-size-is-projected-to-grow-from-usd-20-321-million-in-2020-to-usd-25-719-million-by-2025--at-a-cagr-of-4-8-301113089.html#:%7E:text=%2F%3Futm_source%3DPRN-,The%20global%20automotive%20motors%20market%20size%20is%20projected%20to%20gro