The disruption of the automotive industry: a guide to the strategic positioning of new players and traditional OEMs

Abstract

Historically, high entry barriers in the automotive industry made it challenging for entrants to pose a threat to traditional OEMs. However, recent developments have seen new players gain a foothold in the market. This study identifies electrification, amplified by digitalization and governmental support, as the main disruptor of the automotive industry, while other factors are secondary. To position themselves for competitive advantage, new players are recommended to differentiate themselves through innovation and superior technology. Traditional OEMs, in contrast, should respond by fighting back, focusing on the luxury segment, or launching spin off brands.