Industry Analysis (20 marks):

Thoroughly analyze the chosen industry's structure, trends, and dynamics.

Identify key success factors and critical issues affecting the industry.

Assess the attractiveness and potential risks in the industry.

Provide a clear and concise presentation of the industry landscape.

Assignment Instructions: Competitive

Analysis and Strategy
Course Name: Competitive Analysis and Strategy
Deadline: 26/2/2024
Format: Times New Roman or Calibri, Size 12
Word Count: 5000 words
Assignment Weight: 20%
 Assignment Overview:
For this assignment, you will delve into a comprehensive analysis of a chosen brand within a specified
industry. The objective is to provide a thorough understanding of the industry's structure, trends, and
dynamics, identifying key success factors and critical issues, and assessing overall attractiveness and
potential risks. Your analysis should be presented in a clear and concise manner.

Assignment Requirements:
• Brand Selection: Choose one brand, either local or international, as the focal point of your analysis.
•
• Country Selection: Decide on the country in which you will analyze the selected brand.
•
• Industry Analysis (20 Marks): Thoroughly analyze the chosen industry's structure, trends, and dynamics.

• Identify key success factors and critical issues affecting the industry.

• Assess the attractiveness and potential risks in the industry.

•
• Guidelines for Assignment Structure: Introduction to Brand or Company: Provide an overview of the
chosen brand or company, highlighting its significance in the industry.
•
• Define Industry: Clearly state the industry to which the chosen brand belongs.
•
• Industry Analysis: Discuss the structure, trends, and dynamics of the chosen industry. Include relevant
data and statistics.
•
• Key Success Factors and Critical Issues:
•
 • Identify and discuss factors crucial for success and any critical issues impacting the industry.
•
• Assessment of Attractiveness and Risks: Evaluate the overall attractiveness of the industry and
highlight potential risks.
•
•

Submission Guidelines:
• Formatting: Use Times New Roman or Calibri font, size 12.
•
• Word Count: Ensure that your assignment adheres to the specified word count of 5000 words.
•
• Deadline: Submit your assignment by the deadline of 26/2/2024 on blackboard.
•
• Weightage: The assignment carries a weight of 20% towards your course grade.
•

Evaluation Criteria:
Your assignment will be evaluated based on the depth of analysis, clarity of presentation, adherence to
the word count, and the overall quality of insights provided.
Important Note: Ensure that you meticulously follow the guidelines and structure provided above to
meet the requirements of this assignment. Feel free to reach out for clarification or additional assistance
if needed. Good luck!

Project Title: Analyzing Industry Dynamics and Formulating a Competitive Strategy -

Automotive Industry
Objective: The purpose is to have an opportunity to apply their knowledge of competitive analysis and
strategy in a real-world context.

Industry Analysis (20 marks):

 Analyze the chosen industry's structure, trends, and dynamics.
Industry Structure
The automotive industry, where General Motors operates, is characterized by a few large global
players and numerous smaller competitors. This industry is traditionally segmented into:

Mass-market vehicles: Companies like GM, Ford, Volkswagen, Toyota, and Honda dominate this
segment.
Luxury vehicles: Brands such as Mercedes-Benz, BMW, Audi, and Lexus cater to the high-end
market segment.
Commercial vehicles: This includes manufacturers of trucks, buses, and other commercial
transport vehicles.
Electric vehicles (EVs) and hybrids: A rapidly growing segment with players like Tesla, and
traditional manufacturers also entering the space.
The industry is capital-intensive and has high barriers to entry due to the significant investment
required in R&D, manufacturing, supply chain, and distribution networks.

Industry Trends and Dynamics

 Electrification: There is a global shift towards EVs, driven by environmental concerns and
regulatory pressures to reduce carbon emissions.
Autonomous driving: Developments in self-driving technology are expected to transform the
industry, with many companies investing in this area.
Connectivity: The integration of information technology in automobiles for enhanced user
experience and vehicle management.
Shared mobility: Ride-sharing and car-sharing services are altering ownership trends, especially
in urban areas.
Global supply chains: The industry relies on complex global supply chains, which have been
under stress recently due to geopolitical tensions and pandemics.

 PEST analysis and similar approaches to macro-level

environmental scanning can be useful in keeping a
firm alert to what is happening in the world. The
danger, however, is that continuous, systematic
scanning and analysis of such a wide range of external
influences is costly and may result in information
overload
 The prerequisite for effective environmental analysis
is to distinguish the vital from the merely important

 what features of a firm’s external environment are relevant to

its decisions.
 For the firm to make a profit it must
 create value for customers. Hence, it must understand its
customers.
 Second, in creating value, the firm acquires goods and services
from suppliers. Hence, it must understand its suppliers and
manage relationships with them.
 Third, the ability to generate profitability depends on the
intensity of competition among firms that vie for the same
value-creating opportunities. Hence, the firm must understand
 Thus, the core of the firm’s business environment is
formed by its relationships with three sets of players:
 customers
 suppliers
 competitors

 Hence, the profits earned by the firms in an industry are

determined by three factors:
 the value of the product to customers
 the intensity of competition
 the bargaining power of industry members relative to
their suppliers and buyers.

Analyzing Industry
Attractiveness
 The basic premise that underlies industry analysis is that the
level of industry profitability is neither random nor the result
of entirely industry-specific influences: it is determined by
the systematic influences of the industry’s structure
 The underlying theory of how industry structure drives
competitive behavior and determines industry profitability is
provided by industrial organization (IO) economics
 The two reference points are
 the theory of monopoly
 the theory of perfect competition.

Porter’s Five Forces of

Competition Framework
 Porter’s five forces of competition framework views the
profitability of an industry (as indicated by its rate of return
on capital relative to its cost of capital) as determined by five
sources of competitive pressure.
 Return on capital (ROC), or return on invested capital
(ROIC), is a ratio used in finance, valuation and accounting,
as a measure of the profitability and value-creating potential
of companies relative to the amount of capital invested by
shareholders and other debtholders. It indicates how
effective a company is at turning capital into profits.
 The price that customers are willing to pay for a product
depends, in part, on the availability of substitute products
 The absence of close substitutes for a product, as in the case
of gasoline or cigarettes, means that consumers are
comparatively insensitive to price (demand is inelastic with
respect to price).
 The existence of close substitutes means that customers will
switch to substitutes in response to price increases for the
product (demand is elastic with respect to price).
 The more complex a product and the more differentiated are
buyers’ preferences, the lower the extent of substitution by
customers on the basis of price differences.

 Identify key success factors and critical issues affecting the industry.
Key Success Factors
  Innovation: Continuous product innovation in safety, fuel efficiency, and
technology integration is vital.
 Brand strength: A strong brand can command customer loyalty and premium
pricing.
 Scale economies: Large-scale production can reduce costs and enhance
competitive positioning.
 Supply chain management: Efficient supply chain and logistics can lower
operational costs and improve margins.
 Regulatory compliance: Adhering to environmental and safety regulations is
essential to avoid fines and reputational damage.
Critical Issues
 Regulatory changes: Stricter emissions standards and safety regulations can
increase costs.
 Economic fluctuations: The industry is cyclical and sensitive to economic
downturns.
 Technological disruptions: Electric and autonomous vehicles represent a
disruptive threat to traditional manufacturers.
 Globalization risks: Tariffs, trade wars, and political instability can affect
global operations.

 Assess the attractiveness and potential risks in the industry.

Industry Attractiveness and Risks
The automotive industry offers growth opportunities, especially in emerging markets
and in the EV segment. However, it is also fraught with risks such as technology
disruptions, regulatory changes, and intense competition.

 Provide a clear and concise presentation of the industry landscape.

Automotive Industry Landscape Overview

The automotive industry is a global powerhouse, characterized by a blend of mature companies and
emerging new entrants, especially in the electric vehicle (EV) and autonomous driving sectors. Here's a
concise presentation of the current industry landscape:

Market Segmentation
Traditional Internal Combustion Engine (ICE) Vehicles: Still the largest segment but growth is slowing due
to environmental concerns and regulatory policies.
Electric Vehicles (EVs): Fast-growing segment, with substantial investments from both established
automakers and new players like Tesla.
Hybrid and Alternative Fuel Vehicles: Serving as a transition between ICE and EVs, hybrids are gaining
popularity for their efficiency and reduced emissions.
Autonomous Vehicles: In the development phase with significant investment from tech companies and
traditional automakers.
Commercial Vehicles: Includes heavy trucks, buses, and vans used for commercial purposes.
Key Trends
Electrification: Accelerated shift towards EVs driven by innovation, regulation, and consumer demand.
Digitalization: Increased use of digital technology in vehicles for connectivity, infotainment, and advanced
driver-assistance systems (ADAS).
Mobility-as-a-Service (MaaS): The rise of ride-sharing and car-sharing platforms challenging traditional
vehicle ownership models.
Sustainability: Growing importance of sustainable practices in manufacturing and supply chain operations.
Competitive Dynamics
OEMs (Original Equipment Manufacturers): Traditional automakers are expanding their EV offerings and
exploring new business models.
New Entrants: Companies like Tesla have disrupted the market, focusing exclusively on EVs and
autonomy.
Suppliers: Key players providing advanced components, including batteries and ADAS technologies, are
gaining power.
Dealerships and Aftermarket Services: Faced with the rise of direct sales models and the need to adapt to
servicing EVs.
Geographic Outlook
North America: Dominated by 'The Big Three' (GM, Ford, Chrysler) and is a major market for pickup
trucks and SUVs.
Europe: Strong focus on emissions regulations driving the adoption of EVs and diesel vehicle phase-outs.
Asia-Pacific: Largest market led by China, which is a global leader in EV production and sales.
Regulatory Environment
Emissions Standards: Increasingly stringent emissions regulations globally are pushing automakers to
develop cleaner vehicles.
Safety Regulations: Continuous advancements in safety standards are requiring investments in vehicle
safety technologies.
Trade Policies: Tariffs and trade agreements can significantly impact where vehicles are produced and
sold.
Challenges and Risks
Economic Sensitivity: The industry is highly cyclical and sensitive to economic downturns, affecting
consumer spending on new vehicles.
Supply Chain Complexity: Global supply chains are vulnerable to disruptions from geopolitical tensions,
trade disputes, and pandemics.
Technological Disruption: Rapid technological changes require significant investment and pose a risk of
obsolescence.
The automotive industry is at a pivotal point, with electrification, digitalization, and new mobility models
transforming the traditional landscape. Established automakers and new entrants alike must navigate
these changes to secure their position in the future market.

Competitor Analysis (25 marks):

 Identify and profile major competitors in the chosen industry.

Major Competitors in the Automotive Industry

The automotive industry is highly competitive, with several key players that have
established global footprints. Below is a profile of some of the major competitors
within this industry:
Toyota Motor Corporation
 Headquarters: Toyota City, Japan
 Key Brands/Products: Toyota, Lexus, and a range of sedans, SUVs, trucks,
and hybrids
  Strengths: Toyota is known for its manufacturing efficiency and the reliability
of its vehicles. It is a leader in hybrid technology with the Toyota Prius and has
a strong global presence.
 Recent Focus: Investing in battery technology and expanding its EV lineup.
Also exploring hydrogen fuel cell technology.
Volkswagen Group
 Headquarters: Wolfsburg, Germany
 Key Brands/Products: Volkswagen, Audi, Porsche, Skoda, SEAT, Bentley,
Bugatti, Lamborghini
 Strengths: VW Group benefits from its broad brand portfolio, covering a wide
range of segments from economy to luxury. It has a significant market share in
Europe and China.
 Recent Focus: Recovering from the diesel emissions scandal and heavily
investing in electrification with its ID series EVs.
General Motors (GM)
 Headquarters: Detroit, Michigan, USA
 Key Brands/Products: Chevrolet, GMC, Cadillac, Buick
 Strengths: GM has a strong presence in North America and is known for its
trucks and SUVs. It has a growing investment in electric and autonomous
vehicle technology.
 Recent Focus: Accelerating EV development with the Chevrolet Bolt and
announcing plans for an all-electric future, investing in autonomous vehicle
technology through its subsidiary, Cruise.
Ford Motor Company
 Headquarters: Dearborn, Michigan, USA
 Key Brands/Products: Ford, Lincoln, and a range of trucks, SUVs, and
commercial vehicles
 Strengths: Ford has a robust market share in the truck segment with the Ford
F-Series and is known for its strong brand and customer loyalty.
 Recent Focus: Transitioning to electric vehicles with models like the Mustang
Mach-E, investing in autonomous vehicles, and streamlining its global
operations.
Hyundai Motor Group
 Headquarters: Seoul, South Korea
 Key Brands/Products: Hyundai, Kia, Genesis
 Strengths: Known for value-for-money and increasingly high-quality vehicles.
Hyundai has been gaining market share with competitive pricing and warranty
offers.
 Recent Focus: Expanding its EV lineup with models like the Hyundai Ioniq
and Kia EV6 and investing in future mobility solutions.
Tesla, Inc.
 Headquarters: Austin, Texas, USA
 Key Brands/Products: Model S, Model 3, Model X, Model Y, Cybertruck
(upcoming)
 Strengths: Tesla is a leader in the EV market, known for its innovative
technology, superior electric range, and strong brand.
 Recent Focus: Scaling up production, expanding its global footprint, and
constantly improving its battery technology and autonomous driving
capabilities.
Honda Motor Co., Ltd.
 Headquarters: Tokyo, Japan
 Key Brands/Products: Honda, Acura, and a range of motorcycles, power
equipment, and engines
 Strengths: Honda is recognized for the engineering quality of its vehicles and
engines, with a strong presence in both the automotive and motorcycle markets.
 Recent Focus: Developing its EV and hybrid offerings and investing in
research for fuel cell vehicles.
BMW Group
 Headquarters: Munich, Germany
 Key Brands/Products: BMW, MINI, Rolls-Royce, and a range of luxury cars
and SUVs
 Strengths: BMW is known for its luxury vehicles that emphasize performance
and quality. It has a strong brand image and significant market share in the
premium segment.
 Recent Focus: Expanding its electric i Series lineup, enhancing digital
services, and focusing on sustainable production practices.
These companies represent a snapshot of the industry's diversity, with each competitor
bringing unique strengths, product portfolios, and strategic focuses to the market. The
automotive industry is also characterized by a network of suppliers, dealers, and
aftermarket services that play integral roles in the market's competitive dynamics.

 Analyze competitors' strengths, weaknesses, opportunities, and threats (SWOT analysis).

SWOT Analysis for General Motors (GM)

Strengths
 Brand Recognition: GM is one of the most recognized automotive brands
globally, with a long history and established market presence.
 Diverse Portfolio: GM's portfolio includes a variety of brands such as
Chevrolet, GMC, Cadillac, and Buick, catering to different market segments
from affordable to luxury.
  Innovation in Electric Vehicles: GM has made significant strides in electric
vehicle development, with the Chevrolet Bolt being a notable model and plans
for an all-electric future.
 Strong Global Footprint: GM has a substantial global presence with
significant market shares in North America and China, the world's largest
automotive markets.
 Advanced Technology: Investments in autonomous vehicle technology
through its subsidiary, Cruise, position GM as a potential leader in this
emerging field.
Weaknesses
 Market Dependence: GM is heavily reliant on the North American market,
particularly the US, which makes it susceptible to regional economic
fluctuations.
 Brand Perception Issues: Some of GM's brands have faced challenges in
terms of perceived quality and reliability, impacting customer loyalty.
 Recalls and Legal Issues: GM has faced several high-profile recalls and legal
challenges, which have affected its reputation and financial standing.
 Operational Costs: High labor and manufacturing costs, particularly in
unionized factories in the US, can impact GM's competitiveness against more
cost-efficient rivals.
Opportunities
 Growth in Electric Vehicles: The global push for electrification offers GM the
chance to lead in EV technology and capitalize on new market opportunities.
 Autonomous Driving Technologies: Continued investment in autonomous
technologies could open up new revenue streams and partnerships.
 Emerging Markets: Expanding further into emerging markets, such as
Southeast Asia and Africa, where automotive demand is growing, could boost
sales.
 Strategic Alliances: Forming strategic partnerships and alliances with
technology firms and other automakers can enhance GM's capabilities and
market reach.
Threats
 Intense Competition: The automotive industry is highly competitive, with
traditional automakers and new entrants like Tesla vying for market share.
 Economic Downturns: Economic recessions can lead to declines in new
vehicle sales, affecting GM's profitability.
 Regulatory Changes: Increasingly stringent environmental regulations
globally could require significant investments and changes in manufacturing
practices.
  Supply Chain Disruptions: Global supply chain challenges, including
semiconductor shortages, can halt production and lead to lost sales.
By navigating its weaknesses and threats while leveraging its strengths and
opportunities, General Motors can maintain and enhance its competitive position in
the automotive industry.

 Evaluate competitors' strategies, market positions, and recent performance.

 Compare and contrast competitors' strategic moves.

Internal Analysis (20 marks):

 Examine the internal capabilities and resources of a selected company within the industry.
 Apply relevant frameworks such as VRIO analysis to assess the company's competitive
advantages.
 Identify areas of improvement and potential sources of sustainable competitive advantage.

Formulating Competitive Strategy (25 marks):

 Based on the industry and competitor analysis, formulate a comprehensive competitive strategy
for the chosen company.
 Clearly articulate the chosen strategy (cost leadership, differentiation, focus) and provide
supporting rationale.
 Address how the strategy aligns with the industry dynamics and internal capabilities.

Conclusion
 summarizing key findings and recommendations.
 Group approach and methodology.

Presentation and Q&A Session (10 marks):

 Prepare a professional and engaging presentation summarizing key findings and
recommendations.
 Clearly articulate the group's approach and methodology.
1. Define the Project Goals and Objectives
Initial Meeting:

Convene: Gather all group members for an initial meeting.

Discuss: Talk about the project's requirements and objectives.
Define: Set clear, measurable goals that align with the project's purpose.
2. Assign Roles and Responsibilities
Skill Assessment:

Identify: Assess each member's strengths, weaknesses, and interests.

Assign: Allocate roles and tasks based on the skill assessment to ensure efficiency (e.g., project
manager, researcher, writer, editor, presenter).
3. Plan the Project
Timeline Creation:

Milestones: Break down the project into smaller tasks with deadlines.
Schedule: Create a timeline with specific dates for each milestone.
Resource Allocation:

Materials: List all the resources needed (software, hardware, books, etc.).
Accessibility: Ensure all members have access to the required resources.
4. Establish Communication Channels
Regular Meetings:

Schedule: Decide on regular meeting times to discuss progress, obstacles, and next steps.
Tools: Use tools like Slack, Microsoft Teams, or Zoom for communication.
Documentation:

Centralize: Use platforms like Google Drive or Notion to keep all documents and notes in one
place.
Update: Ensure that all members regularly update shared documents with their progress.
5. Execute the Plan
Task Management:

Action: Each member starts working on their assigned tasks.

Track: Use tools like Trello or Asana to keep track of task completion and dependencies.
Adaptation:

Feedback: Encourage constructive feedback and be prepared to make changes to the plan if
necessary.
Support: Offer help to team members who may be struggling with their tasks.
6. Monitor Progress
Progress Reports:

Regular Updates: Have members report on their progress during meetings.

Transparency: Encourage openness about challenges faced.
Adjustments:

Reassess: Periodically reassess the project timeline and make adjustments if needed.
Resilience: Be prepared to handle unexpected changes or setbacks.
7. Review and Revise
Quality Control:

Peer Review: Check each other's work to ensure quality and consistency.
Revise: Make revisions based on feedback from group members.
8. Finalize and Present
Consolidation:

Compile: Bring together all parts of the project.

Final Review: Do a final comprehensive review to ensure everything meets the objectives.
Presentation:

Prepare: Practice the presentation if there is one.

Deliver: Present the work to the class, professor, or stakeholders.
9. Reflect on the Project
Debrief:

Discuss: After the project is completed, discuss what went well and what could be improved.
Feedback: Provide feedback to group members and receive feedback in return.
Documentation:

Report: Write a final report if required, summarizing the project and the outcomes.
Celebrate:
 Acknowledge: Recognize the effort of all members.
Celebrate: Take time to celebrate the successful completion of the project.
By following these steps, the group can work collaboratively and efficiently, increasing the
likelihood of a successful project outcome.

 Participate in a Q&A session, demonstrating a deep understanding of the industry and strategy
formulation.

Submission Details:
 The project report should be submitted in a written format, not exceeding 20 pages (excluding
appendices).
 A 20-minute presentation followed by a 5-minute Q&A session will be conducted.
 Assessment Criteria:
 Content and Depth (40 marks): The depth of industry and competitor analysis, the
comprehensiveness of internal analysis, and the logic behind the selected competitive strategy.
 Presentation Skills (20 marks): Clarity, organization, and professionalism in presenting findings
and recommendations.
 Critical Thinking and Creativity (20 marks): Innovative and critical thinking demonstrated in the
approach to strategic analysis and formulation.
 Teamwork and Collaboration (15 marks): Effective collaboration and contribution of each team
member to the project.
 Responses to Questions (5 marks): Ability to address and respond to questions during the Q&A
session.
 Total Marks: 100