04 - Strategy Diamond (Recommendations)

Question 1

arenas

Answer 1

EU: expansion (potential, 2025: 30% EV of market)
- slowly stop selling ICE (France, Germany…etc)

US: E-trucks - leverage on their market share + demand (chicken tariff + profitable segment)

China not worth it - incentives lead to saturation

distribution: agency model + own stores and service locations

Question 2

vehicles

Answer 2

EVs - cost leadership strategy
- outsource batteries (ex: Workhorse)

Autonomous - fast follower strategy
- acquisition of autonomous car brand
- joint Venture w/ ride share app (like Uber x Volvo)

Question 3

differentiators

Answer 3

use past/brand loyalty + benefit from reg. bodies
- build exclusive charging stations for all brands

lower priced compared to Tesla - satisfy the lower market segment
- as lithium batteries become cheaper

focus on customer service + after sales service
- namely in physical locations / services

focus on sustainable + ethical practices (importance of its brand image)

Question 4

staging

Answer 4

Start with acquisition to gain knowledge + tech

Continuously build charging networks

Focus on EV to build the foundation for the autonomous vehicles to come -> once established: autonomous (ride share launch)

Question 5

economic logic

Answer 5

achieve economies of scale (EVs)
- necessary to increase margins

higher margins from agency model

leverage on the US truck + SUV market
enormous potential in the EU

money from the charging stations