A1: Individual Assignment - Strategic Analysis Paper

Description of assignment:
Title: The Future of Electric Car Industry
Your final individual assignment is based on electric car industry and Dyson which is
positioned as one of the players. See details below:
On September 26, 2017, Financial Times announced that Dyson, a British technology
group led by Sir James Dyson, famous for its bag less vacuum cleaners was working on
a premium electric car to go on sale in 2020. Dyson enters the motor industry at a time
of intense change and disruption. The company behind the eponymous vacuum cleaner
and hand dryers has been working on electric battery technology for almost two
decades. Over the past two years it has built an automotive team of 400 engineers,
drawn from manufacturers including BMW, Aston Martin and Tesla, and is preparing to
use its research to give it the edge in a ferociously competitive sector. “We know this is
a crowded market,” said founder James Dyson as he announced that the company
would spend £2bn on the car and battery technology. He also predicted that the
automotive business would outgrow the rest of the company “quickly”. It will spend £1bn
on the battery and £1bn on designing and making the car, with the promise of future
models to help recoup the investment. Sir James said he expected to make a profit on
the venture. The money is part of a £2.5bn investment plan that had already been
announced by the company. He said the remaining £500m would be used on the
group’s other products. Andrew Bergbaum, managing director for automotive at
AlixPartners consultancy, said the timeline of building a plant and launching a car by
2020 was “very ambitious” and the company was likely to incur “years of losses” before
recouping its investment.
Familiarise yourself with electric car industry and Dyson’s commitment to enter the
electric car industry by reading research around Dyson and electric car industry.
Financial Times has abundant research on both the electric car industry and news
around Dyson.
Question 1: Using Porter’s five forces and PEST framework analyse the main forces
that have an impact on profitability in the electric car industry. (750 words)
Question 2: Identify and discuss 2-3 business models which are emerging in car
industry, specifically focusing on the emerging business models in the value chain.
These business models can be as a result of breakthroughs in new products, services,
or new revenue models in any part of the value chain. You may want to consider both
near and long-term possibilities. (750 words)
Question 3: Dyson is at the ‘introduction’ phase of the electric car industry lifecycle.
What according to you could be the first mover advantage (if any) in this industry for
Dyson? (250 words)
Question 4: What are Dyson’s unique resources and capabilities (if any) that gives it
the market power to enter this fiercely competitive market? (250 words)
Question 5: If you were invited to a lunch with James Dyson at his home in
Gloucestershire with a specific mandate to provide a set of strategic recommendations
that will enable Dyson to build a sustainable competitive position within the fast-
changing electric car industry, what would your strategic recommendations consist of?
(1000 words)
Please use Times New Roman, font size 12.
APA 6th ed. style referencing