03 - SWOT Flashcards
strengths
Strong brand image + reputation
Established brand + years of experience
Strong brand portfolio
High + diversified network of suppliers
Extensive distribution network
Protected by the government
Strong market share in trucks + SUVs
weaknesses
Great dependence on the US market
Low margins + losing market share
Cost structure relies on high volume sales to drive profitability
Culture of overconfidence: neglected industry changes
- behind in EVs
No clear competitive advantage (VRIO)
opportunities
Strong demand forecasts for EVs + autonomous
EVs less complex + cheaper to produce and maintain
= economies of scale is easier
Charging stations/networks being established
Asian + EU market has great potential
Ride-share opportunities (autonomous)
Agency model (ex: Tesla)
threats
EVs + autonomous vehicles threaten existence of middle automakers
Ban of traditional ICE vehicles
Potentially being obsolete
SUVs demand shifts according to the price of gas
Highly competitive - mainly Asian market (higher margins, lower price + good quality)
EVs less complex = lower entry barriers
- Niche market entrants
Virtually maintenance-free
- impact profit streams (heavily rely on sales of parts + services)
