Impact of Strategic Management

Impact of Strategic Management with Special focus to Digital Age – A Mintel Study Related to Coda Automotives

Abstract

This paper is designed to bring out the facts which is related to Coda Automotive. With the right intention and the focus to bring the best for the society Coda Automotive have taken the initiative to support the environment by introducing the environment friendly cars which are designed to deliver the best. The main focus and intention to choose this company as a consultant is to show case the facts of the company being not so renowned or successful as compared to it big competitors. The selection of this company is aimed to derive and discuss the facts which could be implemented in the company protocol and the execution system which is further exhibited as to be the moot point for the consumers in general. However, there are certain facts which could be the best tool for the growth of the company and for the overall expansion of the business using the digital age. This paper also aims to discuss the strategic management and the impact of it and Coda Automotive has been chosen to show case such facts which could actually improvise the base factors inclining towards the implementation of digital technologies as its equipment.

Introduction

Strategy management is one of the core foundations of any marketing plan and is related to the progress of the alliance. A precise strategy is a business’s overall future plan which involves the total layout of the types and timings of marketing activities. Here we are taking the “Coda” automobiles whose marketing strategies are running at the inclining stage of the product life cycle. Coda Automotive is an American private company. Its headquarter is located in Los Angeles, California. The Coda name generally arrived from one of a musical term that deals with the manufacturing of battery system cars and also power storage applications. At this digital age, huge transformations are taking place that has a large impact on the Coda Company[1]. The digital transformations tend to remove many barriers in order to capture the entire market with all new technologies. Thus it is very important for any company to improve the managerial strategies as well as the digital strategies just similar to that of the cyber criminals that aims at building various criminal approaches. With the development of digital transformation, the Coda Company can actually work on improvising the various strategic challenges with respect to the digital age. Strategic management is the tool which has shown various effects on the marketing strategy of different organizations. However in case of Coda the impact of strategic management is on the declining side.

Well, the digital age transformation can create a huge impact on the Coda Company or any other automobile companies. The sale of autonomous vehicle will increase to a large extent that may reach up to 23 million by 2030. The automobile industries that were running with huge competition and fought tremendously with each rivalry companies, has started investing huge sum of money in order to build up with all new technologies there by maintaining a strong connection with the automobile companies as well as with the consumers[2]. Those automobile companies perform better with the digital transformations; it is obvious for them to hold a stronger position in the market.

Strategy Analysis in-relation to the Marketing

Political forces

The Coda automobile industry currently faced with major political issues that is free-trade vs protectionism and along with the level of state subsidies to national producers. Hence issues with the political forces are highly volatile that may result into increase in the ongoing price for the customers that usually discourage them from procuring.

Economic forces

Coda automotives are also concerned with the economic factors which resulted the product life cycle of the company at an inclining stage. The most influencing factor is the recession which has increased unemployment and decreased the consuming power of the customers. The prices of raw materials, especially for the steel are rising at a tremendous rate. Due to these economic forces, the fuel prices also raised.

Sociocultural forces

The social forces has changed the customers purchasing pattern mainly due to the problem of recession. Consumers as a result got more and more alert to cope up with the car market and are strongly seeking for the best deals. The fame earned by the brand is a bi-element of the socio-cultural forces which perceives the brand as a facet of quality. That is how these socio-cultural forces effect the marketing strategies of the alliances.

Technological forces

The Coda automotive have also got adversely affected due to various technological forces. The well-known car market has introduced various innovative technologies. The Coda automotive is aiming to improvise its manufacturing process with more technologically developed tools and techniques.

Legal forces

Last but not the least, though Coda automobile is called as the builder of Environment-friendly cars at the automobile study in 2010, the discharge laws has resulted into higher building cost of cars. As a result the Coda automotive failed to gain their popularity and market strength in the existing business environment.

Competitor analysis

The performance of the Coda got focused by verifying the status of the competitor analysis. The Coda group operates in many countries with an objective of positioning itself as the economic, global and surrounding leader among all the automobile constructors. The Coda automotive initial sales was low that resulted into termination of more than 14% of its workforce. Mercedes-Benz, Audi, Porsche, Toyota, GM etc are the major competitors of Coda Automotive.

Customer / client analysis

Customers or the clients play a crucial role in any business environment. Customers act as the most important tool for the survival of any business organization. They share a strong bonding in between those corporate organizations who buy and sell goods & services on the basis of their satisfaction. Thus, we can say that no business entrepreneur can think of operating their day-to-day business without any clients. Clients are the foundation of any business organizations.

Suppliers

Suppliers are those which grants goods and services for the business. Coda group focuses on the price factor of the suppliers. Suppliers are considered necessary for the growth of the business.[3]

Public

Public are those individuals who prevail interest in the work and in the outcome and facilities of the business. Therefore, they are directly or indirectly active in the open market and they also capitalize shares in the market.

Digital Implementation and its Impact

With the new digital implementation, the automobile industry is going through a flamboyant transformation, fulfilling all the aspects of its business right from the company design to the performances of the company[4]. Over the next few decades, if the Coda Company gets involved with the new digital era, than it can generate huge revenue and large company savings. With the invention of new technologies, more than 50% of the car purchasing process goes online which indicates the fact that there may be big opportunity for the automakers to influence the car buyers for various purposes. However, digital marketing is also considered as a tool which has helped numerous organization for promoting their product and services and marked their presence in the competitive world. It is relevant and precise to state her that the companies like Coda must be able to adhere the concept of digital age by promoting their products and services using platforms like social media or digital advertisement and much more. The concept of better marketing and the promotion of the service and products go valid with the scenario if the mass population is enabled with a single piece of information which is spread widely through a digital platform. In order to increase the productivity, the Coda Company should go for adopting new technologies which can be done by improving the formal sector through travel and tourism which can create more potential for the automobile companies. Thus, in order to implement digitization, the Coda Company should first encourage their merchant and also make some strategies to incentivize the customers. /p>

Strategy Marketing

The Coda Company should build certain strategies related to the marketing aspects in order to promote their product and services in a more flamboyant way. Since Coda operates with different brands, so it should adopt various targeting strategies from its portfolio so as to differentiate between each of the strategies that are being implemented by the automobile industry. The Coda automobile should also use the value-based positioning strategies in order to build an attractive image in the minds of the car buyers. The Coda automobile should put its strategic focus mainly on strange thing the company brand in order to optimize its resources so as to come out of the loss market and diminishing working employees.

SWOT analysis

SWOT analysis is a study which is undertaken by an organization to identify the internal strength and weaknesses as well as its external opportunities and threats.

Objectives

The main objective of Coda automotive was to strongly focus on the basis of the customer centric designs and promote vehicles which could grab the attention of millennial and also the regular car users. The only objectives of Coda automotive was to bring innovations that is innovations everywhere, every time and at every place. This automotive has started to generate various informations regarding the functions and performances of the all Coda electric cars. It mainly aims at specializing the electric vehicles. Thus Coda automotives aims at capturing the entire interest of the car market. It offers car services that are different from other car manufacturers. Coda group objective is to hit a strong stability in creative and technological aspect of the company. /p>

• Coda automotive has been trying to optimize its resources by decreasing the number of employees, developing the loss market and various other steps that are helping the company to control its day to day cost.
• Its main objective is to adopt the growth of electric car vehicles in global prospects.
• Coda automotive have also implemented a corporate strategy to focus mainly on improving the car performances along with bringing up safety measures thereby reducing the cost of the cars.
• Another objective of the Coda automotive is to broaden the product portfolio that will be beneficial for the company as far as the competition, growing market and the economies of scale is concerned.
• It possesses a philanthropic strategy that shall support social and cultural growth as well as economic development in the local communities.
• Coda has set an objective of comparing the previous year’s turnover with the current year’s total turnover so as to increase the total sales and volume of the company.
• Coda automobiles aims at setting certain goals for their group like production of a new car model within a specific time period so as to capture the whole market interest for gaining its profitability and growing the economic aspects of the company over its competitors.
• It also aims at reducing the cost of manufacturing its electric vehicles that controls and gives a new structure of the car design. The Coda automotive will be acting as one of the leading automobiles in the coming days.

Target market

There is no precise niche market for the Coda automotives company. Hence defining target market is not relevant.

Positioning

Coda is based at California with a focus to expand its wings across the globe of the best enhancement of the business and promote the unique concept of ecofriendly cars and targeting the niche of comfort and quality lovers for its models and designs.

Marketing mix strategy

Product

Coda group is considered as one of the biggest producer of cars in Italy and has won the eighth position across the globe. The company usually follows that its vital tool are products and customer satisfactions. It has a record of producing machines and carriages, aircraft, transport for Armed purpose etc. Coda’s commercial transports mainly consists of SUV vehicles, Sedans, Hatchback and auto-parts. It also manufactures agricultural products, commercial vehicles like buses and trucks, construction and metallurgical products. The product range comprises both small cars and luxury cars in Italy.

Price

Coda is an international company which exists in all over the globe. The goods re of superiour standards and are mostly present in various nations of the Globe. Hence it has a strong opposition in the customer market for which it is not able to adopt premium pricing policy. As a result Coda group has also developed rate-based pricing system for achieving higher standard products than their competitors.

Distribution (place)

The Coda group has emerged its quality and has been trying to showcase its footprints across the globe. The real market is situated in Europe and South America and has a joint ventures in several nations like Indonesia, Pakistan, Australia, Algeria and Italy with a combine deal broadly with the companies like Tata Motors in a well-known country that is in India and another company Chery Motors located in China. Coda group has a strong distribution network which includes dealership programs. Moreover, its yearly manufacturing capacity is on the inclining side.

For services only

Sales persons, marketing managers, general managers, automobile designer, automobile mechanics etc. takes on the responsibilities to serve the best to its customers. Coda is equipped to provide the services to its customers at the best of its excellence. However years ago Coda has also taken the initiative to introduce the customer retention policy with its effective loyalty program. Though different initiatives of Coda survived for a short span of existence due to its frequent changing decisions of its own management. Broadly, the marketing services of Coda includes the talent of the marketing team which caters different marketing policies and services which involves customer satisfaction policy too.

People

Alliance like Coda automotives is furnished with a cluster of experts for the best execution of work for its customers. However as due to the declining market and pre-assumed by the experts which states that Coda may vanish by 2020 it is fathomed that the service related people of Coda is not on the enthusiastic style for execution of better delivery of the products and services. The motivation of the management and its people has kept the Coda survived for ages and has served the best policies for achieving the target audience.

Process

The process of execution of polices could not be evaluated for the Coda as it has changed from time to time. However there are executions which made Coda a renowned automobile company for its better products and services.

Physical evidence

The physical evidence of the company could be evaluated by the existence of the company in the market. There are various gossips about the existence of Coda but the physical evidence could not be counted on this part. The people, the team the decisions and the role of management has made the organization capable to exist for ages. However, it could be recommended that the practice of execution and the management of people and services in Coda needs a revision to keep up with the sphere of generation.

In the past few years technology has begun an era where the economic forces and technology have put the buyers in control of their communications with businesses. On the other hand these businesses hope to understand & serve their clients (in a global digital economy) and undergoing digital transformation that includes investing and realigning in new business models and technology with primary emphasis on customer experience[5]. Looking at the current Automotive Market scenario it is estimated that by the end of the year 2030 the overall market will grow up to 4 Billion Dollars. 30 % of this amount will potentially be driven by technological advancements that are changing the automotive sector. It is said that the future of automotive innovation will be governed by four main technologies-

• Automation
• Connectivity
• Electric Power &
• The Shared Economy

These players have already initiated nvesting huge capitals (in billions) to change the automotive game. Instead the process of transformation is not only channelized exclusively on the product but also on the overall processes as well.

In terms of competition, Coda Automotive is a car manufacturing industry all around the globe. Championing the digital technology & creating a unique customer experience is the primary motto of the company that proves its existence. Its unique vision towards innovation and zeal towards customer satisfaction helps to keep it moving towards the ladder of success[6]. The company is striving hard to discover ways to keep its customers interest intact in terms of how to leverage the customer data to assure single, unified view in every stage (from the development of product & car design to CRM- Customer Relationship Management).

With the help of digitalized technologies in the coming years the Automotive Companies will use its customer data not only to churn out the sales, but also to offer great features, new customer experiences & differentiating experiences such as the Eco Drive software introduced by CODA. The Eco Drive is software that gathers environmental performance metrics in detail in terms of the following-

• Throttle openings
• Engine revs
• Gear changes
• Speed
• Overall fuel economy from every single trip

Digital transformation trends in automotive industry

Studies reveal that by the end of the year 2020 as a result of technological advancements and growing digitalization there will be tremendous increases in investments in automotive industry say up to 82 billion dollars. This is due to the fact that these industries have quickly learned the fact that in order to meet the customer demands they must adapt themselves to digitally enhance their expertise over the current trends that are transforming the automotive industry.

Digital Sources- In the process of buying a car

In earlier days the Coda lovers find it quiet difficult to find a pervasive salesman who can offer they true intense back & forth negotiations while making the final purchases. Previously buying a car was a source of stress. Gone are the days when the customers were mainly equipped with a newspaper advertisement, felt ill-informed and pressured when buying a new vehicle. Today before finalizing any Coda model the customers research it online before stepping in the showroom.

In such scenarios some of the websites display purchasing details in just a few clicks to the customers. Not only this also the showrooms are gradually being modified into digital market places furnished with virtually real capabilities[7]. One of the best examples to this is the Audi virtual showrooms where only a few number of cars are actually displayed. These cars are displayed via giant video screens revealing useful buying details. Such kind of virtual capabilities permits the visitors to listen to authentic sound effects, sneak a 360 degree peek inside & outside and even open doors of their potential new car model. Looking at a positive response from their customers (to research/ buy online) the car companies are more likely to start selling cars/ car parts directly via their respective sites.

Autonomous Driving

As per the studies conducted by different scholars, it is estimated that the autonomous vehicle is just going to become normal in the coming years just like an elevator. Just like when we step on to the flow the elevators starts working without pressing any button. Similarly in the coming years the cars will work the same way[8]. The chances of cars driving on their own will become a reality one day. The credit to this goes to the collaboration of a number of advanced technologies.

From GPS-> to sensors -> to cameras to -> connectivity & algorithms

Automated Vehicle will tackle all kinds of conditions &situations. It is also estimated that such vehicles will minimize the deaths and accident rates occurring due to automotive vehicles. This will ultimately give the drivers freedom of travel[9]. With the passage of time assisted driving is becoming more and more mainstream.

The primary aim is to make this feature more easily available to public in less expensive car models. It is assumed that the technique for assisted-driving will be very useful in minimizing the car accidents & reducing the costs of insurance in the years to come. It is going to provide the best car services to people who are willing to take their services. The technology for self-driving is being experimented in different corners of the world (not as prevalent on-the-road). A number of barriers & regulations are impeding this growth. This is due to the fact that anything that is transformed into something which is digitized & gets connected to the Internet, the security towards cyber threat also increases exponentially.

Improved manufacturing & connected supply chain

Like other industries, transformations in digital trends are being utilized to personalize the experiences of the customers and customize their needs accordingly. Similarly the automotive industry is not indifferent towards such transformation. Digitalizing the connected supply-chain brings the below mentioned advantages-

• Lowers down the costs more effectively
• Engages the clients
• Collects useful information (customer related) &
• Uses that information to serve them better

In the recent times the car manufacturing industries has shifted away from the domestic &regional manufacturing & towards a more decentralized approach for both supply chain as well as manufacturing. A part from lowering down the cost it has opened doors for more clarity n the manufacturing process, accelerating design, supply chain & final delivery.

Exchange of information is made possible via different kinds of social media & IoT (Internet of Things) offers instant feedback that “communicates” to a smart factory. This in turn utilizes AI &advanced algorithms to conduct activities such as managing workflow &creating schedules, and has robots accomplishing various activities (with people) on assembly lines. Such kind of connected technologies raise productivity levels and minimize defect rates. For instance, a study conducted on a manufacturing plant in the year 1990, reveals that initially it was 25 % utomated in comparison to today(year 2018) which is 75% utomated. It was also noticed that digitization has lowered down the defect rates to ess than 12 per million rising the output to a greater extent. Despite a number of challenges associated with finance while in building these smart industries, the remarkable improvements towards performance, flexibility & production will more likely overrule this hurdle[10].

Predictive Maintenance

How will you be notified whether your car tires need air? Does any of your car part is required to be replaced? In cases of car maintenance no guess work actually works. These days the hi-tech vehicles enable us to know when they require any kind of replacement or maintenance. With the use of latest self-diagnostic systems automatically alert their car users whenever there is any kind of issue. This allows the drivers to drastically lower the mechanical recalls and failures, by proactively servicing their vehicles from time to time. Such kinds of widespread changes pose great challenges to the car manufacturing industries. However, the advantages of technological enhancements & the digital revolution of the automotive industry far outweigh these challenges.

Coda is also aiming to mark its presence across the globe being the world’s best automotive company. Championing the digital technology & creating a unique customer view is the motto of the company that keeps it moving towards the ladder of success. The company is striving hard to discover ways on how to leverage the customer data to assure single, unified view in every stage (from the development of product &car design to CRM- Customer Relationship Management). Studies reveals that before making any purchases 92% of the customers opt their car specification online. Hence CIOs must understand their clients from their basic requirements and leverage the power of their digital-tools to assure that businesses revolves around their customers, get an idea of what they do & don’t like & encourage clients to head toward the dealership.

Keeping in mind the prevailing Automotive Market scenario it is assumed that in the coming twenty years the overall automotive market will grow tremendously to a greater extent. A lot of capital will be driven by technological advancements in this sector.[11] This will completely revolutionize the automotive sector. It is assumed that in the coming years the future of automotive innovation will be governed by technologies such as- Electric Power, Connectivity, Automation and the Shared Economy.

This will further help the Automotive Company to use customer data not only to increase sales, but to offer great features, customer experiences& differentiating experiences such as EcoDrive. The Eco Drive is software that gathers environmental performance metrics in detail in terms of the following-

• Throttle openings
• Engine revs
• Gear changes
• Speed

Eco Drive then makes suggestions on how to modify a person’s driving style in the best possible manner to minimize expended emissions in real time, via accumulated information on the site and on the vehicle’s display. For instance, when &how the driver shift gears or apply the brakes, how well he/ she maintains the car, the inside temperature, tyre pressures etc. all part of the Eco Drive recommendations too. This software highlights all such kinds of parameters &challenges the drivers to utilize them to their benefits, enhancing the growth of their eco-friendly ranking which they are even invited to compete against others & share with those who are a part of Eco Drive online. Statistics reveals that Eco Drive customers end up saving up to 6 % to 16% more fuel as compared to those who are not the part of this. However customers have different levels of concern on the basis of their digital experience and knowledge.

The young customers who grew up with the Internet will have connected devices as a part of their everyday lives will be expected to be less worried. While on the other hand those customers who are more reluctant to give up information are expected not being able to participate in such kind of experiences[12]. This is because like many other industries Coda strongly respects regulations in terms of data. The company is striving hard to discover ways to keep its customers interest intact in terms of how to leverage the customer data to assure single, unified view in every stage (from the development of product & car design to CRM- Customer Relationship Management).

When the software (Eco Drive) does not give any consent and the users are unable to access the software. Hence it is the duty of businesses &corporations all around the world to help in building the trust needed for clients to want to choose in to these experiences without thinking that the information shared by them will be used or breached in the wrong way. As a result of smart use of customer data various brand experiences emerge to take more care than ever.

Conclusion

To narrate and evaluate the strategic implementation process of Coda automotive as described above there are certain changes which need to be impose into practical practice such as the brand guideline and the brand design implementation which needs to be updated according to the contemporary market based trategic competition. It could be also precise and relevant to state that Coda caters the composition of brand value and product value to its customers.

Implementation of designs and brand guidelines could not prove sufficient for Coda to expand its market as the market expansion also depends on the core features and largely inclined to the price factors which is further co-related to the marketing niche and target audience. To further state about better business sphere of Coda across the globe it is vital that Coda adopts new market procedures, new styles, new features for its products and fathom actual industry requirement for its own niche. As Coda has earned its fame through its products and services, it is still equipped with its own capability of delivering better and cost efficient products for its market existence. The Coda automotive includes various chain partners like Continental automotive Systems, Lear, Hella, Celgard, OMITEC and many more. It has more than 20 suppliers and partners all over the world. It aims at educating various customers about the car sustainability, car performances and green energy generating technology by conducting various educational seminars that reaches more than 700 students. However the implementation of strategic management and the usages of digital technology could be the best tool for enhancing the business across the globe.

References

Automotive and Transformation (2018) fetched from http://www.ddsplm.com/wp-content/uploads/2017/06/Siemens-PLM-Coda-Group-Automobiles-NVH-cs-Z3.pdf

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George, M (2011). The view of digital technology in coming years. Ed.2. Philadelphia- The Samuel Printing. pp. 61-72

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Greto.K.(2013). The upliftment of automobile industry with the digital sequence.Ed.5.Philadelphia- The Publishers. pp. 52-85

[1] Baase, S. (2009).The future of automobile marketing.Ed.3.New York- The Sages.pp21-28

[2] Brey, P. (2006) Comparing the strategy of marketing development and its theories.Ed.2. California- The press.pp10-15

[3] George, M (2011). The view of digital technology in coming years. Ed.2. Philadelphia- The Samuel Printing. pp. 61-72

[4] Mark, G (2012). The focus on the digital technology for the industry advancement Ed.3. New York- The Sages.pp.61-72

[5] Greto.K.(2013). The upliftment of automobile industry with the digital sequence.Ed.5.Philadelphia- The Publishers. pp. 52-85

[6] Camp, J. (2012) Paradigm of the marketing of automobile companies.Ed.5.California- The Press.pp.21-42

[7] John, F. (2008) Significance of marketing and it implications. Ed.2 New York- The Sages-pp.61-82

[8] Roe, P.R (2007). The introduction of marketing strategies.Ed.1. New York- The Sages.pp.21-25

[9] Bynum, T (2013).The marketing strategies of the product based organization.Ed.4.Philadelphia- The Press.pp.51-81

[10] George, M (2011). The view of digital technology in coming years. Ed.2. Philadelphia- The Samuel Printing. pp. 61-72

[11] Greto.K.(2013). The upliftment of automobile industry with the digital sequence.Ed.5.Philadelphia- The Publishers. pp. 52-85

[12] Brey, P. (2006) Comparing the strategy of marketing development and its theories.Ed.2. California- The press.pp10-15