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
Nissan

CEO Carlos Ghosn firmly believes that the next

technological paradigm will change from gasoline-powered
cars (conventional cars) into electric motors.

Apparently

many startup companies including Tesla Motors

and BYD Auto China share this beliefs too in terms of
automotive technology future scenario.

One

of the biggest challenge for large-scale adoption of electric

vehicle are the lack of its supporting infrastructure, the
charging stations. Tesla tried to overcome this challenge by
building 500 supercharger stations throughout United States.

Case Synopsis
While

Nissan believes in electric cars technology, Toyota on the

other hand had difference beliefs which is the gasoline-electric
hybrids that would be the automotive dominant technology.

This

leads to the difference on the way they invest in

technology. Nissan builds on of its fully electric cars, Nissan
Leaf. Meanwhile Toyota expanding their R&D investment in
hybrid technology, creating the hybrid cars Toyota Prius.

Many

alternative technologies are competing to become winner

in setting a new standard for propelling cars. As time goes by,
we will know which technology will be the dominant
automotive technology.

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.

Which companies do you think are currently best positioned to

influence the next industry standard in car-propulsion technology?

4.

What would you recommend different competitors (e.g GM, Toyota,

Nissan, and Tesla Motors) do to influence the emerging industry
standard?

Related Framework: PESTEL Analysis

Related Framework: Industry Life Cycle

Case Analysis and Solution

1. Absolutely in the next couple of decades, combustion engine cars will lose
their position in the market. Such as:
Politic:

The bureaucracy changed will 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.

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.

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:

world.

Zero emission which make a better air and less polluted air in the

Legal: Government regulation regarding the price of oil and limited resources.

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. 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

4. 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

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