'The European Way: An analysis of the automotive industry' by PA Consulting Group
European car manufacturers face particular challenges to deliver growth or at least retain market share in an increasingly congested market. With emerging markets providing opportunities, but increased competition, consumers now have greater choice and European OEMs need to look at greater collaboration across the industry to deliver competitive advantage and acquire new customers.
This analysis of the automotive industry by PA Consulting looks at how the US, Asian and European manufacturers have performed over the past decade with the conclusion that the Asian OEMs have strengthened their position and moved into new territories, while the US strategy has largely failed. For European car manufacturers, the challenge is to remain competitive and this strategic analysis presents an approach that plays to the strength of the European market and looks at opportunities within a broader context.
“It is important to understand that competition between German OEMs should not be the main centre of attention in the future. Instead, focus should be on a common response to the Asian competition” says Engelbert Wimmer, member of PA’s management group and author of the analysis by PA Consulting Group.
The European Way is a combination of six inter-related strategies to ensure success over the next decade. It includes the following:
Systems view
- Transcending the industry e.g. strategies to reduce CO2 emission
External view
- Getting supply relationship management right e.g. building relationship with suppliers for technological leadership
- Embracing co-opetition e.g. sharing the cost and risk for technological advances
Internal view
- Focusing on innovation eg developing competence centres for innovation
- Fixing products and processes eg evaluating your global manufacturing footprint
- Capturing downsteam eg understanding the value of the customer after the sale of the car.
"The industry must step out of the box labelled ‘building and selling cars’ and instead try to define itself as provider of value oriented, environmentally sustainable, secure and intelligent mobility solutions based on a social responsibility”, says Engelbert Wimmer.
'The European Way' can be accessed at www.paconsulting.com/europeanway For a hard copy contact Juliet Prowse, below.
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