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Reflective Analysis of Article Extreme disruption in the automotive industry

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Added on: 2022-12-07 09:24:37
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  1. Introduction

The word disruptive in the business context is referred to as innovation. It is a type of innovation that develops new markets and trends in the market. This innovation or change disrupts an existing market it also destroys the market-leading firms, their networks, their products, and their alliances (Kukova, 2016). The word disruption has been used many times because it is seen in many industries such as the hotel industry by Airbnb, the television industry by web series and Netflix, etc. Sometimes a new innovation is not disruptive but those are the revolution in the particular sector. This particular report is going to discuss how the extreme level of disruption affects the automotive industry (Anon, 2019). The report will also discuss the key issues discussed in the article, the importance of those issues to the automotive industry and the implication of these issues.

  1. Key issues

Some of the key issues discussed in the article are the level of disruption in the product itself, disruption in usual macro trends, the change in developing industry trends and the problem of bringing new changes in the business model of the company so that they can remain in the market (Anon, 2019).

  1. Importance and discussion of the issues

In the car industry, the disruption is hitting the industry on a whole new level because the entire automotive industry is affected extremely by such change, these changes need a lot of investment and research on how to bring these changes. The first issue discussed in the article was: The issue of the disruption in the product itself: The importance of these issues in the car industry is increasing day by day, and the big and well-known players of the industry such as BMW, AUDI, Mercedes Benz, etc, are investing billions of dollars in research and development of these cars (Anon, 2019). The three major disruptions faced by the auto industry are connectedness, autonomous and service models (Litman, 2019). These three trends rely more on emerging technology and for the available companies, they have to adapt and come up with such technology so that they can remain in the market and could maintain customer loyalty.

supplier, he is impacted because the smart car or electric cars need different type of raw material which can be used in the manufacturing of such cars so the supplier needs to come up with all then new raw material if he wants to remain in the market (Anon, 2019). And lastly, companies’ internal stakeholder which is very important for the company has affected these stakeholders are employees of the company they need to increase the efficiency and learn new knowledge about the smart and electronic cars so that they can remain as the employee in the company.

  1. Conclusion

After studying the above report, it could be concluded that the automotive industry is facing a lot of disruption due to the change in the environment of the business. This change is because of the increasing level of technology and the expectations of the customers. And the company has to adapt according to the change in the process of satisfying customers they have to opt for a high level of marketing so that they can understand the consumer and motivate them to buy the products. So, this report discusses how the car manufactures accept those changes to stay in the long run.

  • Uploaded By : Katthy Wills
  • Posted on : December 07th, 2022
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