How to take strategic options in the car industry for the year 2000

Date of publication: June 15, 1992

Company: RISC S.A.

Author: Bruno Colin


Since the beginning of the 20th century, the car has reflected and highlighted the values and symbols of its time, and is now considered as a central element in the day to day life of the modern society. 1. A car manufacturer currently needs four years to fully produce a new model, from the starting point in a R&D laboratory to the launch. In between, laws may change or evolve. The building of a United Europe implies new legislations - "environmental friendly" car, the usage of more recyclable materials, new types of enginen (electric, hydrogen). 2. In parallel with economic facts, the consumer or the driver has also changed. His relationship with his car differs completely from the beginning of the decade, fitting with his new values. 3. Last main point, car industry is no longer targeting a local market, but a transnational market: the Euro-driver or the world-wide driver. BMW, for example, is an export- oriented company. Two thirds of the production are exported. Many manufacturers believe that strategic markets should not be left to importers, and want to develop trans-"local markets", in order to feel themselves at home in other countries. The strategic options taken in a given moment by a car manufacturer will drive its policy for many years. The best it is able to anticipate the future, the best it will score. The purpose of this paper is to illustrate, in a concrete way, how RISC can enhance through Socio-Cultural approach chances of success, far away from crystal bowl.

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