Strategic long-term planning can be invariably hampered by uncertainty. Strategies with the greatest possibility of success may also have the highest probability of failure, and automotive companies are not immune to such uncertainty.
Today, a number of megatrends are impacting automakers in terms of risk “to” the company, as well as potential risks that could impact long-term growth strategies and supporting business models.
- Scale: The move to globalization and consolidation to capture new markets and obtain scale to improve profit margins
- Digital: The changing role of the automobile as a data collection and transmission mechanism and the role of big data in mobility
- Regulatory environment: The complexity of requirements to meet rules related to emissions, health care reform, fuel type/mileage, and geographical standards
- Product development: The trend toward introducing more product lines to meet consumer demand and techniques to deliver upon that demand
- Changing mobility: The nullification of the historic trend to own, operate, or even use vehicles, now challenged by evolving vehicle-sharing communities
How is your company monitoring and planning for these? Check out our latest insights below.