|By Business Wire||
|February 19, 2014 08:34 AM EST||
Mobile internet is gearing up and the automotive industry is yet another lever in order to fuel the growth. The different strategies chosen by the automakers highlight the fact that the future is still blurry. Competition between OEMs and internet giants such as Google or Apple, who see the car as just another mobile device, will intensify over the next years. In order to identify possible fields of action, OEMs should thus focus even stronger on refining vehicle-related services and strengthening their own value chain through connectivity.
Renaissance of "Connectivity"
In recent years, vehicle connectivity has seen a renaissance. Premium OEMs are not the only ones who have significantly stepped up their activities - for the first time, the volume segment has also begun to consider connectivity a strategic lever. However, as of today, no coherent, value-added concept could be established. "Unlike in the consumer electronics industry, connectivity and online services in the automotive industry are still in a very early stage of development. Even though nowadays every well-known manufacturer offers comparable features in the car, it is doubtful whether they really add value for the customer", comments Dr. Jan Burgard, Partner at Berylls Strategy Advisors.
Partnerships Are Becoming Increasingly Popular - With the Consumer Electronics Industry as Well
It is only logical that automakers are gradually entering partnerships with other industries in order to access resources and competencies they lack themselves. Google, one of the internet’s giant and active in certain automotive sub-segments for many years, has just announced the "Open Automotive Alliance" at CES 2014 in order to make the vehicle part of its own Android ecosystem - a strategy that Apple has also been pursuing since its announcement of "iOS in the Car".
We can expect solutions developed by Google's new alliance to have greater impact because, in the future, Android will also be geared to the needs of the automotive industry. "In our opinion, the global take rate of Android in the automotive segment will range from 5% to 32% by 2020", says Simon Chanias, Analyst at Berylls Strategy Advisors.
The Value for Manufacturers Can Be Found "In-House"
Integrating a mobile operating system can be an advantage for automakers. By leaving the largely unprofitable field of "infotainment services" to the consumer electronics industry, OEMs can focus on their core competencies. In order to optimize their value chain, automotive manufacturers are well advised to take a closer look at the potential inherent in connectivity: "The untapped potential of the vehicle as a mobile data supplier puts the business case of the "connected car" into an entirely new light", adds Hendrik Todte, Principal at Berylls.
About Berylls Strategy Advisors
Founded in May 2011 by partners with substantial automotive experience, Berylls Strategy Advisors is a top management consulting firm specializing in the automobile industry. Together with its customers - OEMs, automotive suppliers, engineering service providers, investors, and companies in adjacent business segments – Berylls’s consultants work on the key challenges of the automotive industry in the fields of strategy, M&A and operational improvement. The team of partners and consultants at Berylls Strategy Advisors are distinguished by their long-standing experience and their vast automotive know-how; their ideas are innovative and their solutions focus on measurable results. Thanks to project-related strategic partnerships, Berylls has access to technological expertise and market intelligence, and ensures that the developed strategies are successfully implemented.
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