Technological innovation became important for other reasons too. Technology can only help you cater to the high expectations of customers and keep them satisfied. Now the expectations are set very high and customers want everything in a single product. In the 21 st century, technology is your biggest source of competitive advantage. Positive experience with a brand leads to higher level of trust and higher customer satisfaction translates into better brand image and therefore higher sales. A lot of marketing in the automobile industry takes place through the media and stronger image means higher coverage of your brand and products. Moreover, a higher brand equity and stronger brand image can help with marketing too. If your customers love you, it is one of your biggest sources of competitive advantage. Brand image and brand equity are important reasons that can help automotive makers in such times. While the scandal was expected to have tarnished its reputation and must have taken the brand a lot of time to overcome, it did not take very long for the famous automotive brand to shift gear and get back in form. Volkswagen’s recent Diesel scandal case can be cited as an example. However, brand equity becomes a source of competitive advantage and in the long term helps you bear small and big shocks that could otherwise shake an automotive brand’s roots. Responding to customer expectations in time and providing them a product that suits both their style needs and utility expectations is an important strategy that helps brands build equity. From Ford to Toyota, BMW and Audi, all these brands cater to different segments of customers with varying tastes. The brand image of some is connected with technology. Some of the brands have the image of sporty and stylish while other have more of a premium image. From luxury to low cost, there are a wide range of alternatives available to customers. There are a variety of car brands in the market with varying brand images. Your brand equity results from your customers’ perception of your brand. While this is not the only source of competitive advantage and will not alone help you against fast changing market conditions, still it has a great role in helping you survive fast changing winds. How your customers think of your brand to a large extent affects your sales and profitability. The industry landscape is changing and apart from cost pressures legal challenges are also making the situation difficult for automobile makers.īrand image can be a major source of competitive advantage. It is expected to be in even better shape by 2020. It has evolved through several phases and is in a much better situation than it was some years ago. While the situation today may be more demanding and intensely competitive, the industry is pretty aggressive about growth. It has continued to spend on technologies that make driving safer and better for people. The automotive industry has a long history of innovation and technological growth. In Japan too, the number is above 5 million. In Europe, it accounts for nearly 12 million jobs and in US around 8 million. It is one of the most important players in the global economy. The global automobile industry is remarkable for so many things and apart from its immense growth in the last century, it has created billions of jobs around the world. Sources of Competitive Advantage in the Automobiles Industry
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