Standards Battle:

Which Automotive
Technology Will Win?
By:
Annisa Kharina (29115699)
Karina Permata Sari (29115447)

Outline
1.

Case Synopsis

2.

Issue Identification

3.

Related Framework

4.

Case Analysis

5.

Solution

6.

Conclusion and Recommendation

7.

Lesson Learned

8.

References

Case Synopsis

Gasoline-powered car

Electric car

Case Synopsis
Range
Anxiety
Large-scale adoption of Electric
Vehicles
500 superchargers throughout US

Lack of Charging Station, while the

range of electric car currently limited
to 200 miles

Case Synopsis
Hybrid cars

TOYOTA PRIUS

Introduced in 1997, Toyota

Prius reach 8M units sold

Electric cars

NISSAN LEAF

Introduced in December
2010, Nissan Leaf reach
180k units sold

Case Synopsis
Many alternative
technologies are
competing to become
winner in setting a
new standard for
propelling cars.

Issue Identification
1.

Do you believe that internal combustion engine will lose its dominant
position in the future? Why or why not? What time horizon are you looking
at?

2.

Which factors do you think will be most critical in setting the next industry
standard for technology in car propulsion?

3.

Conduct SWOT analysis for Nisan and Toyota!

4.

Which companies do you think are currently best positioned to influence

the next industry standard in car-propulsion technology? Analyze the
business environment in the near future? What are opportunities and
threats for Nisan! Please explain!

5.

What would you recommend different competitors (e.g GM, Toyota, Nissan,
and Tesla Motors) do to influence the emerging industry standard?

Case Analysis and Solution

1. Absolutely in the next couple of decades, combustion engine

cars will lose their position in the market, based on PESTEL

analysis:

Politic: The bureaucracy changed will automatically affect the entire

system in the industry.

Economy: Prices of oil have risen and oil is a limited (and restricted)
supply. Therefore people like more willing to try or even create new
technologies that substitute the traditional engine. The industry also
hit niche market which only targeted segment would purchase.

Social: People is more concern and conscious about Global warming.

This has affected consumers purchasing habits. They willing to
purchase products that are environmentally friendly, even if these
products carry a premium price.

Case Analysis and Solution

Technology: Alternatives of fuel-powered car in the market

such as Tesla, Toyota Prius and many more. Given that all these
technologies are at an introductory stage, over the next couple
of decades, all these different alternatives will converge into the
next dominant engine, displacing the internal combustion.

Environment: the conventional cars still produced pollution

while electric cars is zero emission which make a better air and
less polluted air in the world.

Legal: Government regulation regarding Partnership with

foreign company.

Case Analysis and Solution

2. Factors that will be the
most critical in setting the
next industry standard for
technology :
Prices
Performance/reliability
Convenience
Introductory stage : Gain more
awareness and little competition

Case Analysis and Solution

3. Conduct SWOT analysis for Nisan and Toyota!
Nissan (Electric
Cars)

Strength

Practical in use
(simpler engine)

Opportunity
Changing
behavior
regarding with
global warming

Weakness

Pricey
Battery issues
Temperature
sensitive

Toyota (Hybrid Cars)

Strength
Flexibility (Longer
fuel distance)

Threats
Lack of appropriate
infrastructure

Opportunity
Less competitor

Weakness
Pricey
Higher
maintenance cost
(double engine)
Battery issues
Temperature
sensitive
Threats
Limited natural
resources (due to

Case Analysis and Solution

4. Companies that currently best positioned to influence
the next industry standard in car-propulsion
technology:
Two firms as the best positioned: Toyota and Nissan.
Toyota has a reputation for being an influencer in the auto
industry and it is now placing strong bets on a smooth
transition out of internal combustion with its hybrid products.
Nissan, is on a full transition to a pure electric vehicle, and
has developed its own model, the Leaf.

Case Analysis and Solution

Analyze the business environment in the near future? What
are opportunities and threats for Nissan! Please explain!
From

the SWOT in number 3, we could see that the opportunity

for Nissan would be the changing behavior regarding with Global
Warming. People will tend to buy Nissans electric car to reduce
the emission.

The

threats would be the lack of infrastructure, which is charging

stations, this will give disadvantage for electric cars

For

the near future, Nissan still insufficient for penetrating the

electric cars due to the lack of infrastructure and it needs more
time to build the supporting infrastructure.

Case Analysis and Solution

5. Recommendation for competitors
Invest

more in R&D

Automakers must reconcile massive research-and-development expenses with

meager sales for at least the first generation of alternative-fuel cars. They end
up subsidizing the purchase of thousands of vehicles to the tune of thousands of
dollars per sale, and they must balance their costs against consumer demand.
Make

a Strategic Alliances

A good example for a firm interested in offering pure electric vehicles would be
to form an alliance with battery manufacturers. Strategic alliances may also
prove useful in developing an appropriate business model. For example, an
alliance with Better Place could give a car manufacturer a first-mover
advantage by including only batteries that fit their models and not those of
their competitors.

Conclusion and Recommendation

Conclusion
It conclude that both Hybrid cars and Electric cars are on par in terms
of economical aspects. Hybrids is deemed to be more promising for near
future while electric is deemed to be promising in the long run.
Recommendation
A firm should be really concern about how the business running. How
effective their Business Strategy to generate profit, how they create a
best business model, how their Action plan to implement the business
strategy and business model. Because without a good Business
Strategy, A company lacks the focus needed to achieve corporate goals
and develop plans that will move the company forward.

Lesson Learned
Nowadays, people is actively seeking for a new alternative
against anything in this world. And technology will always
keep growing and developing by the time. So, its important for
a firm to create a SCA, because it may be the most important
goal of any organization and may be the most important single
attribute on which each firm must place its most focus.
Therefore, a firm which has a better competitive advantage,
they will survive in the market.

References
Frank Rothaermel, 2014. Strategic Management: Concepts. 2 nd
Edition. McGraw-Hill Education

THANK YOU