| The automotive ecosystem is in the midst of significant change, with increasing challenges in consumer demands, technology development, globalization, integration and collaboration. A new era is rapidly approaching in which the very definition of personal mobility will change. Multi-modal transportation will become increasingly common, and intelligent vehicles will cater to diverse consumer needs for information, environmental responsibility and safety. Automotive companies are racing to develop new business models to help them maintain responsible growth. In this dynamic new age, we believe, a focus on the development of compelling personal mobility solutions, retail transformation, global execution and extensive partnering will be the keys to success in 2020. |
Navigating the economic transformation
The growing uncertainty and its widening impact create an urgent need for action. This paper offers our perspective on what business leaders need to do to succeed in the new economic environment, To provide guidance, we have identified patterns in the chaos of economic transformations such as the current one. On the gloomy side, many companies without the cash reserves or fundamental strength do not survive such periods, as we have seen with the dramatic collapse, bankruptcy or threat of bankruptcy facing seemingly rock-solid companies in financial services, retail, real estate, automotive and other sectors, starting with Bear Stearns, then Lehman Brothers and cascading through the global economy. And this trend is global, with many manufacturing companies, for example, closing in Shenzhen, China, and US, European, Japanese and Korean auto manufacturers facing major losses. Already, Ssangyong, the South Korean automaker majority owned by China’s SAIC Motor Corporation, filed for bankruptcy in January 2009. And many other troubled companies are surfacing as well in diverse sectors in Europe, Asia and North America.
On the positive side, history shows that even periods of tremendous dislocation produce winners. Looking back to the panic of the 1870s – a period similar to the present with a mortgage bubble leading to a financial collapse and an extreme tightening of credit – those with cash, like Rockefeller, Gould and Carnegie in the United States, seized opportunities to establish dominance in oil, steel, railroads and other then emerging industries. And while some financial institutions collapsed, a new generation of innovative banks like Deutsche Bank was established on the back of the new industries. Likewise, during the 1930s, those who succeeded focused on the emerging industries of that era, notably movies, radio, automotive and electricity. Today, many of the early winners are focused on value-oriented customers, entertainment and opportunities in such industries as life sciences, telecommunications and the environment, as well as “flight” sectors like gold.
What separates the winners from the rest of the pack in times like these? What strategies and characteristics can be emulated and applied today across diverse industries, regions and competitive positions?
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