Benchmark Study

The connected cars and trucks revenues in 2030 is projected to be 67.3 billion for VW, 43.97 billion for Toyota and 15.67 billion for BMW. The data presents statistics of retaining market share positions. From the trends, each of the competitor companies retains its position and none gains a higher performance or surpasses the other from previous results and ratings. However, the market share percentage declines for each company. The pie charts below represent a comparison of the projected market share percentage for connected cars and trucks now and in 2030.

2. Nagar’s market share in comparison to that of other competitors is improving. The current market share for cars and trucks is 5.8%. If the company is to be placed in the current market with similar conditions as other competitors, the company would be ranked third among the four companies. Its market share is projected to be 5.29% for cars and trucks in 2030. This would be a reduction in market share by 0.51% but the company would still maintain its position in the market. It would still be third in ranking and earn a revenue of 254.2 billion. In the progress of the years, the company’s market share goes down due to a number of factors.

In this case, Nagar has a positive growth potential in the automotive industry. According to statistics, Nagar has the lowest operating and net income of 5.7 and 0.9 billion respectively. This is low compared to the competitors. However, Nagar has a revenue higher than BMW. The company has managed to maintain a balance of trade having a higher value of assets than liabilities. Its liabilities are worth 270.2 billion while its assets total to 310 billion thus an equity of 39.9 billion. The company’s competitors’ have higher liabilities than assets which shows losses in the trade. They also incur much costs from the high number of employees as compared to Nagar which has only 190,000 employees.

3. The TAM of a product determines the revenue a company is going to rise from a certain product or service in a given period of time (Haseeb et al., 2017). According to the data presented, the TAM for cars and light trucks for all companies shows that there is a global production of 53.9 billion auto motives. Nagar produce 382.7 billion, BMW produces 161.7 billion, and Toyota produces 479.7 billion while VW manufactures 835.5 billion. From the data, the companies’ TAM indicates that the revenue attained from sales of the connected cars and light trucks is different for each company. The technological advancement of VW has made it have a higher TAM than other companies. Innovativeness in VW Company has led to manufacture of new automobiles that meet customers’ needs and preferences. The CAGR for cars and light trucks projected over the next ten years is 25. 2 globally with 10.2 for Nagar, 25.5 for BMW, 24.8 for Toyota and 23.2 for VW. The CAGR for all companies ranges from 10% to 30% which is a good growth rate for all companies. VW is the fastest growing competitor as it has a very high projected market share in 2030 of 13.2% which is higher than other companies. Its projected CAGR for the next ten years is expected to be 23.2%.

4. Business changes are dominant overtime for any successful business. For a business to be successful, it should take different turns in marketing strategies and technological innovations (Fonfara, Ratajczak-Mrozek & Leszczyński, 2018). There are cases whereby customers positively adhere to the changes while in other cases, some customers tend not to embrace the changes. In a case where customers are slow to respond to changes in innovation, the following actions should be taken. The first step is to review the customers’ needs and preferences (Fonfara, Ratajczak-Mrozek & Leszczyński, 2018). In this case, we will be able to establish what the customers require hence produce for them auto motives with the specs they desire. Then we would enquire from the customers their feedback on the company’s products. An improvement or adjustments would then be made for the existing products to meet the needs of the customers. If a competitor is taking over the market, as a company, we would perform a comparative analysis between our company and the competitor company (Fonfara, Ratajczak-Mrozek & Leszczyński, 2018). This will give a clear view on what the competitor is doing extra. We would also perform a SWOT analysis for the competitor to learn their strengths, weaknesses, opportunities and threats.

5. Product launch is a major role to the growth of a company. Launching a product to the market is the most sensitive part of a product since it determines its reception by consumers in the market (Najafi-Tavani et al., 2018). To launch a product in the market, then the company should first learn about its customers’ needs, write a positioning statement about the market, pitch the positioning strategy to the stakeholders and plan the marketing strategy. Then when the marketing strategy is established, a goal for the launch should be set and a promotional content be set. All stakeholders and the team involved for the launch should be informed then the launch happens (Najafi-Tavani et al., 2018). In this case for this project, the company will require extra personnel to help in composing the product launch. Extra funds will be required to initiate the launching process as well pay for the extra staff acquired (Najafi-Tavani et al., 2018). Strict timelines will be followed to ensure that each step before the product launch takes the required time. This will help in meeting deadlines and avoid time wastage.

References

Alfarisi, S., & Sabli, T. E. (2017). The influence of intangible benefit towards market share of manufacturing company. Advanced Science Letters, 23(9), 8470-8472.

Fonfara, K., Ratajczak-Mrozek, M., & Leszczyński, G. (2018). Change in business relationships and networks: Concepts and business reality. Industrial Marketing Management, 70, 1-4.

Haseeb, M., Hussain, H. I., Ślusarczyk, B., & Jermsittiparsert, K. (2019). Industry 4.0: A solution towards technology challenges of sustainable business performance. Social Sciences, 8(5), 154.

Na, Y. K., Kang, S., & Jeong, H. Y. (2019). The effect of market orientation on performance of sharing economy business: Focusing on marketing innovation and sustainable competitive advantage. Sustainability, 11(3), 729.

Najafi-Tavani, S., Najafi-Tavani, Z., Naudé, P., Oghazi, P., & Zeynaloo, E. (2018). How collaborative innovation networks affect new product performance: Product innovation capability, process innovation capability, and absorptive capacity. Industrial marketing management, 73, 193-205.

Market share percentage for cars and trucks now your company BMW toyota VW 5.8 3.91 8.5399999999999991 8.77

Market share percentage for cars and trucks in 2030 your company BMW toyota VW 5.29 3.77 8.42 9