Changing Business Models
The automotive industry has been and will keep facing fundamental changes in its entire DNA. Intensified by the economic downturn, profit-margins are continuously getting under even higher pressure. Possibilities for product differentiation get fewer and loyalty continues to decline.
Existing market players are looking for vertical and horizontal integration opportunities. They are entering new markets or extending their breath of services to tap into more lucrative areas.
Yet they are increasingly confronted with new players that are entering and competing on the new “mobility” market. Selling a car becomes merely one part of supplying this new demand. Successfully creating and sustaining advantage becomes a continuous challenge for old and new players.
New Consumer Behaviors
Today’s generation of drivers, who live in a fundamentally changed ecosystem, are demanding to be pleased even more. Whether they are “young up-and-comers”, “professional users” or “empty nesters”, consumers demand companies to consistently cater to their continuously changing expectations – even post purchase.
Where in the past only a few dimensions determined the outcome of a consumer’s buying decision, today this has become a multi-dimensional, sub-segment based, dialogue driven and unforgiving process that highly depends on successful 1:1 multi-channel communication. A challenge no one can solve independently.
Product, price and value proposition comparisons become key to the consumer decision making process – and today’s consumer (whether private or business) has all the transparency possible – just a fingertip away.
Especially the younger segments challenge the classical model of investing significant money into a product that will devaluate from the moment of purchase. They are looking for innovative concepts that deliver mobility at lower Total Costs of Ownership and more value-add.
The most impactful change yet to come will be “the internet of things”. Starting with an ever-increasing amount of sensors in and around the car, the car or driver’s interaction with real-time information coming in from all sources, enabled by continuous connectivity, will shape a new product experience in which the physical car is only one part of a mobility offering.
Customers will demand innovation cycles that parallel the developments as they experience them in their non-car related environment. A new social platform – they will not buy a new car to enable the service in their car.
This requires a new approach by all market participants to disconnect mechanical innovation from electronic innovation. At the same time this enables them to deliver more revenue moments with the customer than just at the car’s purchase. Successful companies will have to become a mobility services provider.
Automotive: Experience across a wide range of industries and processes
Dicitas Consulting offers its customers an extensive amount of experience from projects in and around the automotive industry from strategy to implementation, from starting-up to sustaining, from realignment to turnaround, in industry segments like motorbikes, cars, trucks and more.
We have worked successfully with the top- and front-line of:
– Original Equipment Manufacturers
– National Importers
– Dealer Groups
– and other stakeholder groups
Selection of capabilities and processes:
– Sales and After-Sales Excellence
– Marketing, CRM and Digital Transformation
– Customer Service
– Order to Cash, Purchase to Pay
– Inventory and Warehouse Management
– Manufacturing and Plant Logistics
– Supply Chain Planning & Execution
– Dealer Integration
– Product Lifecycle Management
– Project Portfolio Management
Please contact us to discuss your situation and let us show you the value Dicitas Consulting can add for you.