More than one major auto company teeters on the edge of bankruptcy today. Several large auto suppliers have already fallen into bankruptcy, while other auto suppliers are merging together or considering consolidation. Cost of labor and materials are rising. With that kind of news, you might think the automotive industry is in deep, deep trouble.
But is everyone really in trouble? Our study indicates that something different is happening: successful automotive companies—and there are many of them—are shifting away from the way things have traditionally been done. What is different is that today's successful automotive companies are becoming more flexible and agile. As part of IBM's ongoing research into the automotive industry, the Institute of Business Value (IBV) set out to identify why many automotive companies are successful, despite what appears to be a difficult industry environment.
The team found that the leading automotive companies have flexible business models that help them to adapt and 'change lanes' based on changing conditions and the particular environment they are facing. Please download the full study to learn more about these findings and details of key dimensions of today's flexible business models including: responsiveness, differentiation, efficiency and impact.
