Bm633 Strategic Agility Partnerships September Assignment Sample

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Johnson's Mazda Oxford: Innovation, Sustainability & Growth

Johnsons Mazda Oxford is thus a symbol of the technological innovation and environmental integrity it stands for but also that the exhilarating driving experience that purchased Mazdas deliver to customers. Being based in the beautiful city of Oxford, this dealership has been part of the incredible global network belonging to Mazda that is a brand renowned throughout history for its leading developments in car creation and innovation. Since an event-rich heritage is steeped in historical milestones like the rotary-powered Mazda 787B triumph, which won the epic 24 Hours of Le Mans race back in 1991 such that it continues to form part as a major chapter commanding memorable attention whenever the discussion about the traditional blending with innovation. On being a part of a company employing between 4,00 and 5,000 people around the world johnsons Mazda Oxford garners immense knowledge base and pooled resource.

Johnsons Mazda Oxford Product/Service BCG Matrix

Category	Description	Examples
Stars	High growth, high market share products. These vehicles are leaders in high-growth areas, requiring significant investment to maintain their position but also generating strong returns.	Mazda CX-5, Mazda3 (latest models with SKYACTIV technology)
Cash Cows	Low growth, high market share products. These are established, successful models that generate consistent revenue with less need for investment.	Mazda MX-5 Miata (a classic, consistently popular model)
Question Marks	High growth, low market share products. These vehicles or services show potential but require substantial investment to increase their market share. Decision-making is crucial for these to become Stars or phase out to avoid becoming Dogs.	New electric vehicle (EV) models, experimental designs
Dogs	Low growth, low market share products. Less profitable or potentially loss-making options, which might be considered for discontinuation unless they serve a strategic purpose.	Older models nearing end of life, less popular variants

Target market and market share

Johnson Cars showed remarkable financial results in the year 2020, given that it was deep in the middle of challenging COVID-19 pandemic conditions (Johnsonscars.co.uk., 2023). The AD100 car retail group located in Redditch and one piece in its network was Johnsons Mazda Oxford which showed significant increase of 14.1% turnover from £ 457.2 million to ¢495.6 million making a huge increment over the course of the year Additionally, the company recorded a significant increase of 410% in profit before tax from £ 632 thousand in 2019 to $3, pdt5 at l- y nnDecember 3 I emigrating ron It (Johnsonscars.co.uk., 2023).

Mazda and that includes Johnsons Mazda Oxford defining success, therefore depends on the target demographic in large part. Vehicles, such as the Mazda3 and CX-5 models are very much appreciated by individuals aged from thirty to fifty (Johnsonscars.co.uk., 2023). The baby boomer generation usually earns a combination of performance, style and reliability in its cars which Mazda has been doing all along (Mazda.com., 2022).

Firm Sustainable Development Goals, Strategic Capabilities, Strengths and Weaknesses

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SDG Framework Contribution

The sustainability efforts that Mazda has adopted follow a system designed on pillars with the natural world, people, society, and responsible management at its core (Mazda.com., 2022). One of the focus is thus clear companies' initiatives towards carbon neutrality by 2050, with an interim goal for their factories globally by the year 2035 to act in a proactive way to mitigate climate change challenges. Diversified CO2 reduction solutions are also highlighted by Mazda, which makes use of various novelties to adapt to the local type of energy and push for automobile electrification (Mazda.com., 2022). In addition, their goals to increase female management and promote a diverse workplace exemplify the company’s concern with social sustainability. When tackling these major issues, Mazda’s operations directly support some SDGs—namely those for climate action control impact production and gender equality.

Business model canvas

Section	Analysis
Key Partners	? Suppliers of sustainable materials Electric and hybrid technology developers Environmental NGOs
Key Activities	? Development of electric and hybrid vehicles Research in sustainable technologies Community engagement and environmental conservation efforts
Key Resources	? SKYACTIV technology Research and development facilities Global dealership network
Value Propositions	? Environmentally friendly, innovative vehicles Commitment to carbon neutrality by 2050 Enhanced driving experience with a focus on safety and efficiency
Customer Relationships	? Personalized service through dealerships Customer support and education on eco-friendly driving Engagement through sustainability initiatives
Channels	? Dealerships, including Johnsons Mazda Oxford Online platforms for sales and customer engagement Social media for awareness and community building
Customer Segments	? Environmentally conscious consumers Businesses looking for sustainable fleet options Governments and municipalities seeking green transportation solutions
Cost Structure	? Research and development for sustainable technologies Marketing and promotional activities Operations and logistics with an emphasis on sustainability
Revenue Streams	? Sales of electric and hybrid vehicles After-sales services including maintenance and parts Partnerships and collaborations focused on sustainability

VRIO analysis

Resource/Capability	Valuable?	Rare?	Costly to Imitate?	Exploited by Organization?
SKYACTIV Technology	Yes	Yes	Yes	Yes
Global Dealership Network	Yes	No	No	Yes
Commitment to Carbon Neutrality by 2050	Yes	Yes	Yes	Yes
Diverse Workforce and Inclusive Work Environment	Yes	No	No	Yes
Research and Development in Sustainable Technologies	Yes	Yes	Yes	Yes

Strengths and Weaknesses

The strategic capabilities of Mazda, which are mentioned above in connection to the VRIO analysis and Business Model Canvas, prove a good innovation towards fuel-efficient technologies, environmentalism, superior global dealership network as the key forces (Favaro, 2020). These strengths make Mazda a leader in terms of future launches involved with eco-friendly vehicles, which will create more demand in the industry. On the other hand, Mazda will struggle to quickly grow its electric vehicles (EVs) while taking into account the cost of shifting towards sustainability (Mazda.com., 2022). Further, weakness within the neighbouring of world approaches and the imitation nature in terms of technology that occurs so fast cause vulnerabilities in the automotive industry. Additionally, to research and development as its strategy, Mazda also acts in order to ensure diversity within the population of employees (Mazda.com., 2022).

Competitor and Macroenvironmental Analysis with Strategic Scenario

Porter’s five forces

Force	Analysis
Threat of New Entrants	Low. The automotive industry has high barriers to entry due to significant capital requirements, established brand loyalty towards companies like Toyota, Ford, and Volkswagen, and stringent regulatory standards.
Bargaining Power of Suppliers	Moderate. While there are many suppliers in the industry, key components and technology partnerships (e.g., batteries for electric vehicles) are dominated by a few, such as Panasonic and LG Chem.
Bargaining Power of Buyers	High. Customers have a wide range of choices among competitors like Honda, Nissan, and Hyundai, leading to high price sensitivity and demand for innovation.
Threat of Substitute Products	High. With the rise of alternative transportation modes (e-bikes, public transport) and services (Uber, Lyft), consumers have viable alternatives to owning vehicles, especially in urban areas.
Rivalry Among Existing Competitors	High. The automotive market is intensely competitive, with major players like Toyota, Honda, and Volkswagen aggressively competing on innovation, pricing, and customer service.

PESTEL analysis

Factor	Analysis
Political	? Brexit implications lead to new trade agreements and tariffs affecting automotive imports (SMMT, 2020). ? Government incentives for EVs include grants and tax benefits.
Economic	? Post-COVID-19 recovery shows an uptick in vehicle sales, with a 3% GDP growth forecast for 2021 (Gov., 2023). ? The UK's inflation rate at 2.5% impacts consumer purchasing power (Gov., 2023).
Social	? A 30% increase in consumer interest towards EVs and hybrids in the UK (Statista, 2019). ? Social movements for sustainability influence buyer preferences for eco-friendly vehicles.
Technological	? The UK government's investment in EV charging infrastructure and technology development supports Mazda's electric vehicle initiatives (Assets.publishing.service., 2021).
Legal	? Strict emissions standards by the UK government require cars to meet Euro 6 standards ? impacting Mazda's vehicle offerings in the market.
Environmental	? Mazda's commitment to reducing its environmental impact aligns with the UK's target for a 68% reduction in greenhouse gas emissions by 2030.

Strategy A

Mazda plans a £500 million UK investment to expand its EV and hybrid range, targeting 30% annual sales growth, sustainable mobility leadership, and a £200 million NPV by 2035.

Rationale

This approach includes Mazda dramatically increasing its Electric Vehicle (EV) portfolio and hybrid vehicle installment in the United Kingdom across the next five years relatively to be approaching 2030 (Mazda.com., 2022). It will move over consumer inclination demand for sustainable transportation choices. The rationale behind this strategy is to establish Mazda as the front runner in sustainable mobility solutions in the UK due to government incentives for EVs, an emerging consumer preference in green electromobility solutions ahead of a total ban on petrol and diesel vehicles’ sales by 2030 (Mazda.com., 2022).

Costs

The budget for funding the implementation of this strategy is estimated to around £ 500 million. This budget will finance R&D development of new EV and hybrid models, the modernization of manufacturing plants supportive for EVproduction as well as promotional services targeted at the general public and marketing campaigns devoted to highlighting personal advantages of owning a green car. Also this figure encompasses investment in building charging stations.

Revenues

Growth on Mazda’s UK EV and hybrid portfolio portends to immense revenue growth for the company overtime, with sales being projected to grow at an average of 30% annually through 2035 (Mazda.com., 2022). The idea is to achieve a payback period of 7 years. NPV stands at or is estimated £200 million, whilst there is an ARR of 8%. The market is based on eligible EVs, assumed to be listed in the UK and relates to projections of end-user climate–consistent development priorities granted by consumer trends as well as regulation changes (Mazda.com., 2022).

Strategy B

Mazda’s £150 million digital transformation strategy enhances UK customer experience with AR/VR, mobile apps, and seamless digital integration, targeting 20% revenue growth and stronger loyalty within five years.

Rationale

Strategy B targets the full digital transformation of Mazda as well as the improvement of customers’ experience throughout the entire value chain. In the next three years, that is 2024-2027 markets of the UK intend to have seamless digital integration, integrated mobile commerce and viable Tools in the customization of vehicles which will include AR/VR experiences displayed in showrooms as well as mobile applications for after service care afterwards (Statista, 2019).

Costs

According to estimations, the mentioned strategy of digital transformation will cost around £150 million (Mazda.com., 2022). This budget will be invested in the creation of digital infrastructure, developing software, training personnel to work with new technology and advertising by way of announcing a novelty. The donor’s fund will be obtained from the operating budget of Mazda, it can also include some financing the manufacturing investment through technological others and digital innovation grants.

Revenues

This technique is projected to support rave competitive advantage and improve revenue growth by 20% in the first five years following implementation. Concentrating on developing customer satisfaction and engagement, this logical payback period will be for 5 years, based on steady growth in the volume of sales thanks to a better buying experience and an increased level of loyalty.

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SAFe Analysis

Criteria	Strategy A: EV and Hybrid Expansion	Strategy B: Digital Transformation
Suitability	? Highly suitable, aligns with environmental trends, regulatory pressures, and Mazda’s SDG commitments. ? Meets growing consumer demand for sustainable vehicles in the UK.	? Suitable, responds to evolving consumer expectations for digital engagement and personalized experiences. ? Enhances brand loyalty and market differentiation.
Acceptability	? High acceptance among stakeholders due to positive environmental impact and alignment with global sustainability goals. ? Potential resistance from investors concerned about high upfront costs.	? Generally accepted by customers and stakeholders.
Feasibility	? Moderately feasible, considering Mazda’s existing capabilities in innovation and technology. ? Requires significant investment in R&D and infrastructure. ? Potential challenges in rapid market penetration and competition with established EV brands.	? Highly feasible with existing technological resources and digital infrastructure. ? Lower initial investment compared to Strategy A. ? Requires effective change management and digital literacy among staff.

Strategy Discussion and Recommendation

Strategy A - EV and Hybrid Portfolio Expansion: This approach takes advantage of growing demand not only in the world but also in particularly in the United Kingdom of people who want to save on sustainable forms and meet environmental regulations and customers’ needs (Sovacool and Hirsh, 2009). It is also a big statement indicating how Mazda company focuses on innovation and sustainability reflecting that it is among the leading companies through this transition to low low-carbon economy.

Strategy B - Digital Transformation and Customer Experience Enhancement: This strategy provides faster positive results as soon as there is a lower cost of implementation and consideration given towards improving rates that take effect through digitalization (Hafsi and Assar, 2020).

Recommendation

Feasibility and Cost Efficiency: Because Strategy B is cheaper, keeping the initial investment low and still having some success despite all of the current odds, it seems a sensible option (Sosna, Trevinyo-Rodríguez and Velamuri, 2010). It capitalizes on the strength of Mazda vehicles in terms of technology, allowing for a rapid implementation that can be seen in the short term.

Market Differentiation: For Mazda, the need for differentiation from its competition will become increasingly saturated. Differentiation through improved customer experience serves as a complementary strategy to product-based approaches (Ianiro et al., 2023).

References

• Assets.publishing.service., gov.uk (2021). Taking charge: the electric vehicle infrastructure strategy. [online] Available at: https://assets.publishing.service.gov.uk/media/6245ba40e90e075f15381cf0/taking-charge-the-electric-vehicle-infrastructure-strategy.pdf.
• Favaro, N. (2020). Has the green economy revolutionized the car industry and customers choices? dspace.unive.it, [online] 5(4). Available at: http://dspace.unive.it/handle/10579/16606.
• Gov., uk (2023). Impact of Blue Book 2023 changes on gross domestic product - Office for National Statistics. [online] www.ons.gov.uk. Available at: https://www.ons.gov.uk/economy/grossdomesticproductgdp/articles/impactofbluebook2023changesongrossdomesticproduct/2023-09-01.
• Hafsi, M. and Assar, S. (2020). Does Enterprise Architecture Support Customer Experience Improvement? Towards a Conceptualization in Digital Transformation Context. Enterprise, Business-Process and Information Systems Modeling, 5(4), pp.411–427. doi:https://doi.org/10.1007/978-3-030-49418-6_28.
• Ianiro, G., Niro, A., Rosa, L., Valenti, P., Musci, G. and Cutone, A. (2023). To Boost or to Reset: The Role of Lactoferrin in Energy Metabolism. International Journal of Molecular Sciences, [online] 24(21), p.15925. doi:https://doi.org/10.3390/ijms242115925.
• SMMT (2020). Brexit and the UK Automotive industry. [online] SMMT. Available at: https://www.smmt.co.uk/industry-topics/europe-and-international-trade/.
• Sosna, M., Trevinyo-Rodríguez, R.N. and Velamuri, S.R. (2010). Business Model Innovation through Trial-and-Error Learning. Long Range Planning, 43(2-3), pp.383–407. doi:https://doi.org/10.1016/j.lrp.2010.02.003.
• Sovacool, B.K. and Hirsh, R.F. (2009). Beyond batteries: An examination of the benefits and barriers to plug-in hybrid electric vehicles (PHEVs) and a vehicle-to-grid (V2G) transition. Energy Policy, 37(3), pp.1095–1103. doi:https://doi.org/10.1016/j.enpol.2008.10.005.
• Statista (2019). Topic: Electric vehicle market in the United Kingdom. [online] www.statista.com. Available at: https://www.statista.com/topics/2298/the-uk-electric-vehicle-industry/.
• Mazda.com., (2022). MAZDA SUSTAINABILITY REPORT 2022. Available from https://www.mazda.com/globalassets/en/assets/sustainability/download/2022/2022e_all.pdf. Accessed on 02.02.2024
• Johnsonscars.co.uk., (2024). MAZDA OXFORD. Available from https://www.johnsonscars.co.uk/mazda/locations/oxford/. Accessed on 02.02.2024