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Module 6-1 Milestone Two: Strategic Plan
Victoria LaPean
Department of Business, Southern New Hampshire University
MBA 580: Innovation and Strategy for High-Performance Organizations
Jason Wilson
August 15, 2023
Competitors Relative Strengths:
According to the comparative growth data in cars and light trucks between our
competitors, Volkswagen is superior in today’s market share at 8.76%, followed by Toyota at
8.53%, our company at 5.80%, and, finally, BMW at 3.91% (Figure 1). In the 2030 market share
forecast, Volkswagen remains ahead, increasing to 9.00%, while the rest of us within the market
go backwards- Toyota’s shares will lower to 8.41%, our company’s shares lower to 5.28%, and
BMW’s shares lower to 3.77% (Figure 2). In the connected cars and trucks market share,
Volkswagen is at 15.50%, Toyota is second at 8.90%, then our company trails at 7.10%, and
BMW is last at 3.00% (Figure 3). Looking at the 2030 forecasted market shares for connected
cars and trucks, the companies within the market seem to experience a sort of drop or slight
increase. With a drop of 2.45% to 13.19%, Volkswagen is still leading. Toyota is second at by
dropping 0.28% and putting themselves at 8.62%. BMW is in third by increased 0.07% at 3.07%.
Our company plummets to last place- we lose 5.12%, putting us at a mere 1.98% (Figure 4).
Our Company’s Market Share
Our company’s car and truck market share is at 5.8%- we are second to last, as we fall
behind Volkswagen and Toyota. We are in front of BMW by 1.89% (Figure 1). For market shares
in connected cars and trucks, our company’s market share is at 7.10%, but we are ahead of
BMW. Volkswagen is leading the way by being 8.4% ahead of us, and Toyota is 1.8%, leaving a
big gap between the first and second place position (Figure 2). The 2030 forecasted market share
for cars and light trucks shows a decline from 5.8% to 5.28%. On the market for connected
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vehicles, the projection shows a decline in market share, starting from 7.1% and moving to
1.98% by 2030.
Our annual revenue is $187 billion is the third highest, but our operating and net incomes
are the lowest of all the companies (Figure 5). We are netting positive revenue, but our
company's equity level is again, the lowest of all the competitors (Figure 6.1). This issue with
this, is the need for more capital so they can make the necessary changes to be competitive
Potential Total Available Market (TAM)
Looking at the comparative growth data’s total available market (TAM) for cars and light
trucks, BMW is at $126.10 billion, our company is at $187.10 billion, Toyota at $275.40 billion,
and Volkswagen at $282.90 billion (Figure 7). The TAM for connected cars and light trucks
shows BMW at $1.62 billion, our company at $3.83 billion, Toyota at $4.80 billion and
Volkswagen leading again, at $8.36 billion (Figure 8). The CAGR for cars and light trucks over
the next ten years is 3.10% for our company, 3.70% for BMW, 3.90% for Toyota, and 4.30% for
Volkswagen (Figure 9). The projected CAGR for IoT-connected cars and light trucks over the
next ten years is 25.50% for BMW, 24.80% for Toyota, then Volkswagen follows at 23.20%, and
our company at 10.20% (Figure 10). Volkswagen seems to be the fastest-growing competitor and
the only area in which Volkswagen does not rank number 1 is the projected CAGR.
Changes in Business Conditions
If our customers are slow to respond, we must identify why, and we can pivot our
strategy to make sure that it is aligning with our customers’ wants. If one competitor is
overtaking all the others, including our company, we will use the quality function deployment
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technique that facilitates communication between engineering, production, and marketing to
translate customer requirements into development demands.
Concept Outline to Launch
The timeline starting at the beginning of development, just before product launch is not
fixed and could likely change at this stage in the process. The research and discovery stage will
set primary timelines, therefore construction established the gain of the finding will have in mind
established what is being grown. Next the experiment chronology will designate, but utilizing the
lean approach, we experience that we concede possibility need to change growth design
established the learnings and harvest of the experiment. The lean approach is planned to admit
pivots dishonesty and the best chronology is troublesome to forecast aware that pivots commit
happen repeatedly. With that being said, the forecasted budget for our association has an increase
in test and capital costs for years 0 and 1 and the business would expect that the plan and costs
would happen in those 2 years
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References
Annual Report 2019" (PDF). BMW Group. Retrieved 15 August 2023
Comparative Growth Data-.n.d.
Comparative Operating Statistics. n.d.
Tidd, J., Bessant, J., Kouzes, J., & Posner, B. (2021).Managing Innovation:
IntegratingTechnological, Market and Organizational Change. Wiley
