Auto industry evolution: our second special issue of 2003

Citation

Randall, R.M. (2003), "Auto industry evolution: our second special issue of 2003", Strategy & Leadership, Vol. 31 No. 4. https://doi.org/10.1108/sl.2003.26131daa.001

Auto industry evolution: our second special issue of 2003

We proudly present our second special issue this year: "The ongoing evolution of the world auto industry – innovative strategies, new business models''. The issue looks at the world auto industry in transformation from the perspectives of four sets of veteran consultants who follow it closely. This is a feast of information and insights for readers who want to learn more about the industry. But there is also a wealth of new ideas here that are highly relevant to other industries. Some examples:

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  In "Now or never: the automotive collaboration imperative", Daniel Blake, Tom Cucuzza and Sanjay Rishi propose a new business model for the automotive industry – one that is based on the concept of the high-performing collaborative community. In essence, this model takes the form of a race between closely integrated collaborative communities of manufacturers and suppliers. This is a model that that should be studied by many other industries as well, from high tech to publishing.

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  In their article "Metamorphosis in the auto industry'', Cathleen Benko and Warren McFarlan identify the traits industry leaders are adopting to effectively manage new ways of doing business in an era of discontinuity. As the authors explain in their new book, Connecting the Dots: aligning projects with objectives in unpredictable times, these traits need to be championed by leaders in all rapidly evolving industries.

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  In "Demand innovation: GM's OnStar case'', Adrian Slywotzky and Richard Wise describe a new form of business innovation focused on growing new value by discovering new forms of customer demand. Their case study of OnStar, the General Motors mobile communications hardware system and service package, looks at how a company can develop a new offering by addressing customers' driving needs from a fresh perspective.

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  In "Achieving competitive differentiation: the challenge for automakers'', Herbert K. Tay takes a classic strategic management approach to analyzing the automakers' efforts to produce innovation that attracts customers in an era of global overcapacity. His article reminds us that though just three types of attributes characterize the fundamentals of distinguishing any product – quality, cost/value, and timeliness – the rivalry for meaningful competitive differentiation is dynamic, intense, and never ending.

Though it is not about the auto industry, the final article in this issue, "What strategic investments should you make during a recession to gain competitive advantage in the recovery?'' is noteworthy for a number of reasons. For one, it is timely. For another, its research-based advice cuts through the current fog of economic uncertainty: "In a recession, dare to invest aggressively in marketing, innovation and customer quality''. The author, Keith Roberts first joined PIMS (Profit Impact of Market Strategy) in its US office in 1979 and was responsible for the development of many of the benchmarking models the company pioneered. Now that PIMS is a European firm, he is based in London.

Finally, the multi-talented S&L contributing editor, Alistair Davidson, deserves a round of applause for the close up photographs of autos that illustrate this special issue. The full range of his photo hobby can be seen on his Web page (www.eclicktick.com), which also has links to his recent management whitepapers.

Robert M. RandallEditor