COMPETITIVE STRATEGIES IN PREMIUM AUTOMOTIVE SEGMENT
COMPETITIVE STRATEGIES IN PREMIUM AUTOMOTIVE SEGMENT

Summary/Abstract: This paper analyzes how leaders in premium segments adapt their competitive strategies to the radical restructuring of the automotive industry. The analysis is based on the case study of the BMW Group. The automotive industry faces disruptive innovations which threaten to radically change the competitive structure. Leaders’ traditional competencies are no longer sufficient to satisfy the customers’ changing preferences within the premium automotive segment. This research points out the new competencies in the digitalization and electrification that a premium automotive company has to abide by in order to survive the hyper competition and sustain competitive advantage. The study highlights the necessity of reshaping the existing competitive strategies within the premium automotive segment to cope with the rising technological uncertainty and fierce competition. Strong investment in new technologies, efficient, agile and flexible production systems and implementation of hybrid competitive strategy result in strong performance within the premium automotive segment. Findings show that the transformation from the traditional premium auto company to a mobility tech company represents a key to gaining and sustaining the competitive advantage within the premium automotive segment. The paper expands the existing research literature by providing a detailed analysis of how disruptive innovations affect competitive strategies of leaders within the premium automotive segment.

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