Prescriptive and emergent strategy? Risks and challenges for global car companies – including green strategies Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

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Question 01

What were the main factors leading to uncertainty in the world car industry? What are the implications for the prescriptive strategies of the leading car companies? Is it possible to pursue prescriptive strategies in such circumstances?

The major factors that have led to uncertainty in the world car industry have been the fact that the profitability has been under severe pressure from the long term increasing cost issues, which include the pension and the health provisions made to all the former employees working at different United States based firms.

Moreover, another major issue has been the rising fuel prices in the international market that have made the car ownership an expensive commodity. Many car makers have been negatively affected by the increase in fuel prices as they have become rather unaffordable for the consumers and customers to drive such cars.

Thirdly, the increasing awareness amongst the common population to overcome environmental consequences has also made the sales decline. People generally have become environmental friendly and do not want to use cars because cars emit radiation that is unhealthy for the surrounding environment.

The above mentioned issues have been the leading factors, which have created the uncertainty in the world car market. Moreover, the competitions in the market where all the brands offer low prices have been another factor that has affected the market.

In the current situation, most of the companies have actually adapted themselves to the new methodology of staying competitive in the market. Most of the players have been offering cheaper cars that can run without consuming extra fuel.

Moreover, most of the automakers have also introduced hybrid cars. The motive or the idea behind the launch of such cars has been to overcome the international problem, which is to become sustainable in the market.

In the current situation, most of the current car makers have been adopting the strategy that is being followed by all the industry players. In fact, it has become quite similar to one another where most of the auto makers are offering cars that are less costly and can be considered as sustainable in the market.

Moreover, companies do not realize one thing, as sustainability and price cannot be taken into consideration at one time. A company has to compromise on one element of the industry to sustain in the other one. As the case “Prescriptive and emergent strategy? Risks and challenges for global car companies – including green strategies” states, the new hybrid technology is more costly and it cannot match with the concept of providing reduced prices to the customers.

Therefore, in the current situation, it is quite difficult for all the leading car makers to pursue prescriptive strategies in such circumstances because eventually no company in such a competitive era has the capacity and command to purse the perspective strategies. Companies have to find ways where they need to think differently and sustain and compete in the market, rather than following the footsteps of the rival firms in the market.

Furthermore, the companies have to find a method and the ways, which can be quite diverse, unique and as per the needs and wants of the customers. In the current scenario, in order to actually copy the rivals, this cannot make the car maker the market leader. Companies that compete in the market have to bring in innovation, new ideas, concepts and methods to compete and outclass the rivals.

Prescriptive and emergent strategy Risks and challenges for global car companies – including green strategies Case Solution

Question 02

What are the main competitive advantages of the leading car companies? Some strategist have argued that such advantages are now so common amongst all the leading companies that they no longer distinguish one company from another: do you agree?

Since the car industry is a mature industry where there are many players competing for the market share. Some of the leading car makers in the industry are Toyota, General Motors, Volkswagen, Ford, Nissan, Volvo, Suzuki, Renault, Daimler, BMW, etc. All the major players have tried to focus on different strategies to remain competitive in the car market.

For instance, Toyota is more renowned for its reliability factor. People consider Toyota to serve for longer duration and it would not require a lot of maintenance. On the other hand, Honda produces stylish cars, which are more expensive and have extra maintenance cost. Volvo has the competitive advantage where it offers comfort to the customers by charging extra money.....................

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