Case Study: Lakes Automotive Example | Graduateway
The automotive sector has witnessed a sea change over the last decade, disrupting the conventional ecosystem of automotive players. Car connectivity growth is predicted by Gartner to reach one billion in , which is expected to have some major impact on product features like safety, infotainment, mobility and vehicle management that will enable new revenue streams and business models for automotive OEMs. Another major change has come across the manufacturing plants where every piece of information is getting tracked with all the sensors and high-tech devices placed around. But all these technological advancements are fuelling the newer set of challenges like buying channels and consumer buying behaviour has grown complicated. They need an extra push in the form of offers, discounts or add-on accessories which leads to depleting margins. It is been furthered by the industry shifting towards a global supply chain, so auto manufacturers are exposed to not only local but global competitors as well.
Each company — regardless of their origins as a Silicon Valley start-up or an iconic Detroit stalwart — needs to determine which set of capabilities it will need to be successful in its quest to get closer to the customer. And with customer sentiments moving from owning vehicles to consuming vehicles based on subscription models allowing greater choice of vehicle, time, and use options , automotive companies are putting bets on where to play, with whom to partner, and how to go about doing so. In my work, I find that a number of roles are emerging to consider what business model — and resulting capabilities would be needed — to win in the new automotive world. While many companies particularly startups have predefined growth and exit strategies, many companies are still trying to forge ahead in the brave new world. Some have figured out their initial direction and some are still working on it with the help of partners.
AutoCorp is a fast growing startup that helps streamline the automotive repair process by providing mechanics at auto-repair shops with precise diagnostic recommendations. This helps mechanics focus more attention on troubleshooting harder issues and on up-selling opportunities. In order to rapidly get to market, AutoCorp approached Greenlake to develop a system that provided accurate recommendations regarding maintenance services for various types of automobiles entering an auto-repair store as early as possible.