Treadwell Singfield Pallavi Singh Oladotun Awosemo Jason Beaton "This combination represents exceptional value to our shareholders. The new company will be in an improved position to serve its customers' needs on a global basis." — Sergio Marchionne Making Money While Doing Good
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Treadwell Singfield
Pallavi Singh
Oladotun Awosemo
Jason Beaton
"This combination represents exceptional value to our shareholders.
The new company will be in an improved position to serve its
customers' needs on a global basis."
— Sergio Marchionne
Making Money While
Doing Good
OUR JOURNEY
Goals
Situational Analysis
Financial Analysis
Segmentation
Targeting/Positioning
Recommendations
Implementation
Timeline
GOALS – PILLARS OF SUCCESS!
Innovation
Community Impact
Profitability
GOALS – WHAT GETS MEASURED GETS DONE!
• Innovation: Develop product for luxury market (US).
• Impact: Reduce annual deaths per year among drivers in US.
Short Term (2018)
• Innovation: Create scale to bring production of AC to mass market, and develop marketing strategy focused on the African American community.
• Impact: Significantly reduce annual deaths per year among drivers in US, China, & Brazil.
Medium Term
(2020)
• Innovation: Bring technologies to the transportation industry.
• Impact: Significantly reduce annual deaths per year in India.
• Profitability: $12B adjusted EBIT for 4 cars in 3 regions
Long Term (2025)
SITUATION
“44% of U.S. drivers will consider buying a fully autonomous vehicle within the next 10years, and 20% would be willing to pay an extra $5,000+ for the advanced technologyrequired to operate such a vehicle.” –BCG
COMPETITORSMaturity of Product
Autonomous
Non-Autonomous
Semi-AutonomousMass Market Premium
Clutter industry & no one has reached full autonomy
Strengths
- Brand portfolios targeting unique segments
- Partnership model
- Experienced engineering team
- Global reach and production ability
- Increased earnings per share (last 3 years)
Weaknesses
- EBIT down 12% after 5 years
- Lower liquidity compared to other larger OEMs
- Profits in NAFTA dependent on trucks and larger utility
vehicles
- Credit rating below investment grade
Opportunities
- Portfolio extension into white space
opportunities
- Web services & autonomous vehicles
- Potential to guide infrastructure
- Increase in access to affordable financing
Threats
- Uncertainties in China
- Lack of developed infrastructure in developing world
- Currency fluctuations and volatile interest rates
- Volatile interest rates in Brazil
- Strict import restrictions in global environments
COMPANY (CORE COMPETENCIES)
Volume (Scalability)
Partnerships
Marketing (Advertising)
Product Development
RECOMMENDATIONS
Segmentation
Implementation
US: Launch a catalog of vehicles that
capture sales from mass market and
premium segments
China & Brazil: Utilize new production
facility and growing strength of Jeep
brand
India: Establish early presence in India
through ride-sharing and public
transportation
Targeting/Positioning
Target younger, mass market consumer
Mass market will capture significant
portion of African American community
Target premium consumer
Target US, China, and Brazil regions
Establish early B2B presence in India
B2B vs. B2C
Younger vs. older
Premium vs. mass market
Regions of high impact
AVAILABLE CONSUMER SEGMENTS UTILIZING VEHICLES
ALL CONSUMERS
B2B
Affordability
B2C Age
Region
Transportation
Services
Delivery Services
Premium vs. Mass Market
Older vs. Younger
LATAM, APAC, NAFTA, EMEA
ROAD TRAFFIC DEATHS BY TYPE AND REGION
CHOOSING NOT TO ENTER EUROPE OR THE WESTERN PACIFIC
• Healthy growth %, but limited sales in Western Pacific
• Majority of market in Italy and European market is overcapacity.