Strategic Innovation in the Automotive Sector

Georg Radler and Sean A. Meehan

This paper depicts an industry ripe for radical change. The car manufacturing and marketing industry today is hyper-competitive.

Strategic Innovation in the Automotive Sector

Sean A. MeehanandGeorge Rdler

 

INTRODUCTION

The car industry is undergoing rapid change. Until a few years ago, it was dominated by 'national champions'. However, overcapacity, intense competition and the resulting declining profit margins have led to an 'endgame' situation. In this consolidation process, potential survivors must own tightly defined niches or be able to reap economies of scale. This 'relentless search for synergies' led to the recent megamergers (DaimlerChrysler, Renault/Nissan, Ford/Volvo). Whilst we expect the consolidation to continue, brand management and customer satisfaction, not cost cutting alone, will have to...

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