Strategic Management Coursework

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By extrapolating the trends occurring in US to Japan automotive markets, US will initially face difficulties. US and Japan both have strong capabilities in advanced materials. Japan tends to be stronger in areas such as coatings and primary metals, whereas, US based firms tend to be stronger in polymers and polymer composites. Extrapolating one of the trends i.e. Electric cars are of significant effort in US and Japan. The industrial base of US rechargeable batteries is weak as compared to Japan’s industrial base. Currently Japan is world’s top choice in developing and producing rechargeable batteries. Making technology easy for use, Japan is marketing small lithium batteries that can be used in electric vehicles for a prolonged period of time.

3. The competitive stance that would be advisable to the competitor would be to adopt the blue ocean strategy.

Blue ocean strategy is all about breaking the competition and to grow the demand, rather than dividing up existing demands and benchmarking competitors. By breaking out of the red ocean of competition, blue ocean strategy acknowledge market space which makes the competition irrelevant.

For the better understanding of the blue ocean strategy there are three areas of interests that need to be answered by the company.

Firstly, what factors in the industry, should be eliminated. Secondly, what factors below and above the industry standards should be eliminated. Finally, what are the factors industry should create, that they never had before? These series of questions implement a framework known as eliminate-reduce-raise-create grid. This framework allows companies to evaluate all the factors in the industry to compete on, this help them to detect the wide range of assumptions they make in competing. As described in the above grid, once it’s implemented, the successful strategy should combine the three characteristics. Firstly and most importantly, it should be focused, clear and one hundred percent oriented. This must be clearly shown in the value curve. The new strategy proposed must be of high detergency from the average industry as the aim of blue ocean strategy are markets that go beyond the boundaries of currently existing strategies. In order for the strategy to be successful it must have a strong compelling tagline, which can assure interest from the customers.

For instance, Tesla, for high performance electric cars with zero emissions, Tesla made an uncontested market space, intending to target environment friendly consumers who are willing to purchase eco-friendly cars. The innovation of the product was focused on a few factors, namely, Eco- friendly, price, quality, reliable brand image. All of these factors resulted in high loyal customer relationship that has been buying the electric cars in the US.

Despite of high competition, Tesla did not withhold its highly patented technologies but it offered its competitors to access the innovative property, So that competitors can use high tech technology to produce electric cars. Traditional US car makers can work with Tesla to increase market share and sales, because Traditional US car makers are also looking for manufacturing hybrid vehicles and currently the market size for electric or hybrid cars is only 1% of the total market size and the automotive industry is planning to increase the overall market share.

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References

- US Autos: Adding New Routes". Ft.com. N.p., 2017. Web. 26 Feb. 2017.

- N.p., 2017. Web. 26 Feb. 2017.