This thesis analyzes and evaluates current macro-environmental trends in the German automotive industry and their evolutionary impact on automotive business models and competitiveness of traditional German car manufacturers.
To enhance the understanding of industry evolution and strategic change, the German automotive business is explored through the lens of market innovations. Drawing upon the industry evolution model of Henderson and Clark (1990), the impact of automotive market innovations on strategies of German OEMs with regard to inter-firm collaborations are classified and analyzed.
For evaluation of motives and strategic fit in cross-industry collaborations, sources and key success factors of inter-firm competitive advantages are elaborated. Synthesizing and refining among others the theories of Barney (2007), Dyer & Singh (1999), and Williamson (1993), new resources as derived from inter-organizational relationships are depicted in terms of competitiveness and their relations to German car manufacturers are discussed.
Identifying the red oceans and the blue oceans in the German automotive industry according to the business model theory of Kim and Mauborgne (2005), four scenarios for the strategic realignment of German OEMs in response to industry dynamics are formulated. Within this scope, modifications of business model elements are elaborated according to the strategy canvas of Osterwalder et al. (2005) and revisions of existing automotive business models are proposed.
Having studied the business model concept as a possible integrator of traditional strategic perspectives on industry evolution and firm performance, the thesis concludes with the insight that in order to capitalize on the emerging automotive trends, German OEMs need to intensify qualitative partnerships as a new source of sustained competitive advantage. Advanced cross-industry collaborations opening up new business opportunities must be addressed by shift of corporate strategy and redefinition of business models for better realignment of firm resources to current industry-transforming parameters thus ensuring long-term profitable growth in an increasingly connected environment.
Table of contents
1 Introduction
1.1 Motivation of this study
1.2 Research problem and objectives
1.3 Outline of the thesis structure
2 Methodology
2.1 Scientific approach
2.2 Research methods
2.3 Methods of data collection and verification
3 Theoretical Background
3.1 Innovation and industrial change
3.1.1 Innovation types and industry evolution models
3.1.2 Innovation and industry life cycle models
3.2 Business models and strategy
3.2.1 Business model definitions and key components
3.2.2 Blending the business model concept with strategy
3.3 Firm performance and collaboration
4 Outline of the German Automotive Industry
4.1 Market overview and recent developments
4.2 Specific characteristics of the German automotive industry
4.2.1 Value chain design
4.2.2 R&D infrastructure
4.2.3 Education, Tax and Location Factors
4.3 Market fragmentation of major German OEMs
4.4 Current automotive mega trends
5 Industry evolution and strategic change
5.1 Sources of market innovations
5.2 Nature and types of market innovations
5.3 Initiation and motives for strategic change
5.4 Impact of strategic change on industry profit pools
5.5 Summary and conclusion
6 Sources of competitive advantage
6.1 Analysis of inter-organizational relationships
6.2 Evaluation of motives and strategic fit in collaborations
6.3 Assessment of new resources in terms of competitiveness
6.4 Summary and conclusion
7 Strategic realignment of German OEMs
7.1 General changes in business strategy
7.2 Red Oceans and Blue Oceans in the German automotive industry
7.3 Developing Blue Ocean strategies for German OEMs
7.4 Summary and Conclusion
8 Revised business model proposition for German OEMs
8.1 Modifications of business model elements
8.2 Revision and amendment of existing business models
8.3 Challenges and key success factors of new strategies
8.4 Summary and conclusion
9 Conclusion and perspectives
9.1 Findings and implications
9.2 Recommendations for future research
Objectives and Research Themes
This thesis examines the impact of evolving macro-environmental trends on the traditional business models of German automotive original equipment manufacturers (OEMs). The study investigates how these manufacturers can maintain their competitive advantage amidst industry transformations by integrating business model concepts with traditional competitive theories and fostering cross-industry collaborations.
- Analysis of automotive industry evolution and strategic change through market innovations.
- Evaluation of motives and strategic fit for inter-firm collaborations across industry boundaries.
- Strategic realignment of German OEMs using Blue Ocean Strategy and Business Model Canvas frameworks.
- Development of a revised business model proposition for German OEMs to ensure sustained profitable growth.
- Empirical investigation of consumer demand and managerial assessment of future industry scenarios.
Excerpt from the Book
Sources of market innovations
According to the father of innovation management literature Peter Drucker (1985), innovations stem from seven major sources, specifically: unexpected occurrences, incongruities, process needs, industry and market changes, demographic shifts, changes in consumer perceptions, and new knowledge. Geels (2006) offers the similar classification and amends Drucker’s categories by introducing one new perspective: the social source of innovation. This view is also shared by Tuomi (2003) who elaborated on the issue of innovation not being made in the world of objects, but rather in the mindsets and society. Emphasizing the social and relational aspects of innovation, Tuomi (2003) advocates an open approach towards innovation reaching beyond firm boundaries.
We will resolve upon applying the open innovation approach to our analysis of German OEMs, since it helps develop a holistic understanding of how inbound and outbound openness facilitates innovation process and triggers new business models.
Traditionally, German OEMs exploited their own R&D endeavors to enhance their performance. However, research and development’s escalating costs and a shorter innovation life cycle urge automakers to search outside their boundaries for external sources of innovations. There is an overwhelming consensus among scholars and business practitioners that open innovations can yield far better results to the bottom line of OEMs than traditional inward innovation model (Ili et al., 2010; Gassmann et al., 2010; Lazzarotti et al., 2013; Lange, 2014; Selbach, 2104).
Summary of Chapters
1 Introduction: This chapter outlines the motivation for the study, defines the research problem and objectives, and introduces the overall thesis structure.
2 Methodology: This chapter describes the scientific approach and research methods, including qualitative and quantitative data collection and verification techniques.
3 Theoretical Background: This chapter provides the theoretical framework, covering industrial change, business model theory, strategy, and firm performance through inter-firm collaboration.
4 Outline of the German Automotive Industry: This chapter analyzes the current state of the German automotive industry, covering value chain, R&D infrastructure, market fragmentation, and current mega trends.
5 Industry evolution and strategic change: This chapter examines industry evolution using market innovations and discusses sources of innovation, open innovation, and the impact on industry profit pools.
6 Sources of competitive advantage: This chapter explores inter-organizational relationships and analyzes how specific resources and effective governance contribute to competitive advantage.
7 Strategic realignment of German OEMs: This chapter defines changes in business strategy and develops new strategic scenarios for German OEMs using Blue Ocean strategies.
8 Revised business model proposition for German OEMs: This chapter elaborates on modifications to business model elements and addresses key success factors for new strategic approaches.
9 Conclusion and perspectives: This chapter summarizes findings, addresses study limitations, and provides recommendations for future research.
Keywords
German Automotive Industry, OEMs, Business Models, Strategic Realignment, Open Innovation, Inter-firm Collaboration, Blue Ocean Strategy, Market Innovation, Competitive Advantage, Industry Evolution, Resource-Based View, Connectivity, Car-sharing, R&D Management, Strategic Change.
Frequently Asked Questions
What is the core focus of this thesis?
This thesis focuses on the evolutionary impact of current macro-environmental automotive trends on the traditional business models of German car manufacturers.
What are the primary themes discussed?
The central themes include industry evolution, open innovation, inter-firm collaboration, strategic realignment through Blue Ocean strategies, and the development of sustainable competitive advantage.
What is the main objective of this study?
The main objective is to determine how German OEMs can integrate business model concepts with traditional competitive theories to better navigate changing market dynamics.
Which scientific methodology is employed?
The study adopts a system approach, utilizing an abductive research process that combines theoretical literature reviews with empirical investigation, including executive and consumer surveys.
What does the main body cover?
The main body covers the theoretical foundations, a detailed outline of the German automotive industry, the evolution of market innovations, an analysis of competitive advantages through collaboration, and strategic realignment proposals.
Which keywords characterize this research?
The research is characterized by terms such as German Automotive Industry, OEMs, Business Models, Strategic Realignment, Open Innovation, and Competitive Advantage.
How is the "open innovation" concept applied to German OEMs?
The authors apply open innovation to argue that German manufacturers must shift from strictly internal R&D to collaborating with external partners—such as tech companies and suppliers—to access new knowledge and capabilities.
Why is the "Blue Ocean Strategy" relevant for German OEMs?
It provides a framework for German OEMs to move away from "red oceans"—saturated markets with cut-throat competition—toward "blue oceans" where they can create uncontested market space through innovation and new value propositions.
What conclusion does the study reach regarding car-sharing?
The study concludes that car-sharing represents an architectural innovation that should be managed separately as a distinct entity, whereas connectivity models can be better integrated into the dominant business model.
- Citar trabajo
- Lisa Sobotta (Autor), Markus Peetz (Autor), 2015, Moving towards a new paradigm of collaboration. The influence of current automotive trends on mobility business models and competitive advantage of traditional German OEMs, Múnich, GRIN Verlag, https://www.grin.com/document/292856
