In Europe alone, the automotive industry accounts for roughly 12 million jobs.
The global automotive industry is witnessing rapid growth with high demand from regions such as China and India. Also, low-interest rates and declining fuel prices are further driving the growth of the automotive industry. With the growing concern for improving the return on capital, leading manufacturers are focusing on refining their business models to connect with the customers and drive loyalty. Moreover, the industry is also dominated by factors such as improving per capita income and growing customer sentiment. By 2020, the global profits for automotive OEMs are expected to rise by 50 percent. Although the automotive industry is witnessing promising growth, several factors may hinder the growth of the industry.
- Changes in customer demand: With the implementation of stringent government regulations to curtail emissions, customers in the automotive industry are moving towards the use of greener, fuel efficient, and sustainable vehicles. Moreover, the introduction of e-vehicles over conventional petrol vehicles is also forcing automotive manufacturers to promote the use of alternative fuels such as shale gas and CNG in their production lines.
- Changes in brand loyalty: Today, with the altering preferences of the customers, the customers have become more informed and confident in their purchasing decisions. The customers are rethinking their buying preferences, and to retain the potential customers, leading businesses are planning to redefine their product offerings in the automotive industry.
- Technological advances: Technology is a major threat to companies operating in the automotive industry. The global automotive industry has witnessed rapid transformations with a considerable number of competitors offering a differentiated set of products. Therefore, to stay relevant and updated with the current market scenario, organizations should rely on innovations while offering quality in the products offered.
To address these challenges and analyze the competitive landscape, leading organizations are leveraging competitive intelligence solutions. Competitive intelligence is all about gathering and analyzing information about the competitive environment to make better-informed decisions. Competitive intelligence solutions can help derive actionable insights into the competitors, their offerings, and refine their marketing strategies to enhance their business opportunities.
The Business Challenge
- The Client: Automotive components manufacturer
- Area of Engagement: Competitive intelligence
[spacer height=”20px”]A renowned client in the automotive components sector with a considerable number of offerings spread globally wanted to profile and identify the most prominent competitors and compare their product offerings with that of the competitors. The client wanted to stay relevant and updated about the technologies and new products of the competitors. With the help of Infiniti’s competitive intelligence solution, the automotive components manufacturer wanted to streamline their product offerings and refine their marketing models to improve the business performance. The primary concern of the client was to understand the supply and demand curve and analyze the strengths and weaknesses of the competitors to improve their business decision.
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To profile the most profitable segments and increase market shares for the automotive component manufacturer, the competitive intelligence experts at Infiniti carried out an extensive research, which included primary and secondary research. The aggressive methodology comprised of interviews and discussions with prominent stakeholders in the automotive components space. Furthermore, to help the automotive components manufacturer gain a competitive advantage over their counterparts, the experts compiled information from a wide array of sources such as trade shows, paid industry databases, and prominent government bodies in the automotive components space.
The Solution Benefits and the Business Impact
The competitive intelligence solution offered by Infiniti helped the automotive components manufacturer address bottlenecks pertaining to market entry. The client was also able to identify lucrative markets and gain unique market insights to spur market shares. The solution also helped the automotive components manufacturer gain substantial information about the competitors and the relevant technologies. The solution also sought ways for the client to anticipate competitive activity and assess the market disruptions and interpret events.
The future of automotive components space will be marked by innovations due to digitization, increasing automation, and new business models. Moreover, the penetration of electric vehicles will help reinvent the current automotive components space, which a higher emphasize on R&D. Moreover, the automotive industry will also witness the advent of new trends in terms of electrification, shared mobility, connectivity, and autonomous driving, which will have a further impact on the automotive components space.