Discussion - Module 10

Final Project – MBA 580

There are three rivals of the organization and those include VW, BMW, and Toyota. The connected cars, as well as trucks of Toyota's market share, is 8.90 percent and it grows by 24.80 percent in the next ten years. Whereas, cars and trucks market share is 8.53 percent which is rising by 3.90% in the coming decade. As a result, Toyota's IoT vehicles are developing much quicker than simple vehicles in general (Wilbur & Farris, 2014). The second competitor is VW. The cars and light trucks of VW market share is 8.76 percent and its CAGR is 4.30%. Alternatively, connected vehicles market share is 15.50% and is grown by 23.20 percent. So, the connected cars and trucks of the VW market share are growing faster as compared to the light trucks and cars. Moreover, connect trucks and cars of VW is the huge source of profitability of the company. The third competitor of the company is BMW. BMW's current market share of light trucks, as well as cars, is 3.91 percent and it grow by 3.70% over a decade. However, the current market of IoT cars, as well as trucks, is 3.00 percent and it grows by 25.50 percent over the next ten years (Aobdia & Shroff, 2017). So this analysis shows that BMW connected cars and trucks are growing by the highest percentage over the ten years. Moreover, as a consequence, the IoT- vehicles of BMW are expanding as well as attracting more customers and markets, it is also getting the most competitive advantage.

VM's sales is $282.9 billion as well as its operating profit and net income is 20.5 billion and 16.1 billion dollars, respectively. Nevertheless, by looking at the balance sheet of the VW company, its total assets are 590.6 billion dollars and its liabilities are 443.2 billion dollars which makes the 147.4 billion dollars' total equity. Furthermore, the total number of employees that work in the VW company is three hundred and four thousand, one hundred and seventy-four (Nishikawa, Kamiya, & Kawanishi, 2016). The second competitor is BMW. The number of people employed at BMW is 133,778. The total revenue of the company is 126.1 billion dollars, whereas, its net income and operating incomes are 6.1 billion dollars and 9 billion dollars, respectively. On the other hand, its assets worth is 275.9 billion dollars and total liabilities is 203.4 billion dollars, so the equity of BMW is 72.5 billion dollars. The third competitor of the company is Toyota. The total revenue, operating income, and net income of Toyota are 275.4 billion dollars, 22.5 billion dollars, and 19.7 billion dollars, respectively (Cordazzo, 2013). However, the total equity of the company is $190.8 billion and the number of people employed is 359,542. Therefore, this statement states that the financial position of Toyota is the strongest amount all competitor and company because its income and equity is high. Furthermore, it has more employees which show that Toyota company business is huge (Bataineh & Rababah, 2016).

By analyzing the growth data of the company, we conclude that due to IoT-connected trucks and cars, the company is gaining market share. However, due to cars and light trucks, it is losing its market share. The major factor behind the change in the company's market share is customer preferences. Now customers prefer the drive those cars and trucks that have more sensors and technology, which positively influence the connected trucks as well as cars of the market share (Marasco, Picucci, & Romano, 2016). Another factor that positively influences the market share of connected cars and trucks is strengthening the relationships with the customer. As the company invest in the R&D process and know that strong customer relationship benefits the company as well as increase the market share. Therefore, the company is likely to know about the customer desires of new products and manufacture that product which strengthens the company's relationship with its customers. Therefore, customer preferences and strong relationship with customer plays a vital role in changing the market share of connecting cars as well as light trucks (Rahimi & Kozak, 2017).

By comparing the company's growth potential with its competitor, in comparison to VW or Toyota, the company's IoT vehicle profitability market is huge. However, the company's IoT vehicles profitability market, is low in comparison with BMW. The revenue of the organization is $187.1 billion, whereas its net income and operating income, is $0.9 billion and $5.7 billion, respectively (Overby & Lee, 2006). However, the net income of the company is less than its competitors (BMW, Toyota, and VW). On the other hand, the total worth of the company's assets is three hundred and ten billion dollars as well as its liabilities are $270.2 billion. Due to this, the organization equity is $39.9 billion.

The TAM, as well-referred to as total available market, refers to the revenue option accessible to a service or product if it achieves 100 percent share. It aids in determining how much effort as well as funding a company or person should place into the innovative enterprise line (Kenrick, Svabova, & Nica, 2019). The TAM for the light trucks and cars of Toyota is 275.40 billion dollars. Whereas, the TAM for the light trucks and cars of the company is 187.10 billion dollars. Moreover, the Total-available-market for VW and BMW is 282.90 billion dollars and 126.10 billion dollars, respectively. The TAM of connected trucks, and cars for the company, is $3.83 billion. However, the three rivals are VW, Toyota, and BMW. The first competitive rival is BMW, as well as its TAM for IoT cars and light trucks is $1.62 billion (Agnolucci, 2007). Additionally, another rival of the organization is Toyota. TAM for connected trucks and cars of Toyota is $4.80 billion. Furthermore, another rival of the organization is VW as well as its total-available-market for IoT light trucks and cars is $8.36 billion.

CAGR refers to average annual growth of an invested capital over a time period greater than 1 year. The CAGR of the company's light trucks as well as cars over the 10 years is 3.10 percent (Mishra, Pandey, & Verma, 2018). However, the three competitors are VW, Toyota, and BMW, and its CAGR of cars, as well as light trucks over the ten years, are 4.30 percent, 3.90 percent, and 3.70 %, respectively. Over the next 10 years, the anticipated CAGR for connected cars and trucks was indeed 10.20 percent (Hamilton-Basich, 2021). BMW's connected vehicles and trucks are expected to grow at a rate of 25.50 percent. Furthermore, Toyota's projected CAGR for connected automobiles is 24.80 percent, while VW's is 23.20 percent.

After comparing the connected cars and trucks CAGR as well as projected CAGR of simple cars and connected cars and trucks of three rivals, we concluded that the fastest-growing competitor of the company is VW because of its market share, TAM, and CAGR, when compared to its rivals as well as the corporation, it is greater.

If the customer of the organization is slow to buy (respond) the innovation, then the company needs to change its marketing strategy. Because marketing strategy of the company plays a vital role in changing the buying decision of the customer. As the company is producing IoT-connected cars as well as lights trucks, so it needs to utilize the most effective marketing strategies (Sudha & Sheena, 2017). Therefore, the company needs to target those right individuals with the automotive campaigns. Make a different segment for the audience, as well as run separate marketing campaigns for all. The social media that can be used in the marketing campaigns are Twitter, Facebook as well as Instagram. If the competitor of the company overtakes the company as well as other competitors, then the company needs to offer a competitive price to its customers. Because one of the effective ways to defeat the competitor is by offering affordable prices (Kim, Lee, & Roehl, 2018). When companies more focus on the existing rate of the market for a product then they can set the price within the competitor price range.

The development size would be high because the company needs to establish an innovative product and that needs research and development too. The company will need additional personnel as well as capital because when the company is choosing incremental innovation then it needs to add innovative feature in the existing product or technology that attracts the customers (Rask & Günzel-Jensen, 2019). For add new features in product, the company needs to invest a high amount of capital in R&D. Furthermore, it also required additional personnel that will make the new product according to the customer needs.

For adding feature and launching a product, the company will take one year. To begin with the research and development, it will take two months to understand the wants and requirements of the customer through surveys and questionnaires. After R&D, the company will make changes in the product as per the demand of the customers. This process will take one month. In addition, the company will decide on target customers because if the company does not decide who they are targeting then it negatively influences their marketing campaign (Hermawan, 2018). Moreover, after deciding the target market, it will decide the marketing channels. After that, it will finalize the launch of its new product and announce the final date. In between this, the company will share the information related to the product and launch its new product. Furthermore, the company will evaluate the product's success through its sales in the first month.

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