Environmental Engineering Reference
In-Depth Information
Cooperation should also be a way to display
one's strategy in front of competitors and stake-
holders in order to enable different strategies to
emerge within a representation of the future based
on a low carbon economy scenario. The World
Business Council for Sustainable Development
Project “Mobility” is one of example of this kind
of cooperation.
If technology is crucial to cope with carbon
transition, the real issue is much broader than
technological. In 2010, people living in urban areas
represents over 50% of the world population. By
2030-2050, this ratio is expected to grow up to
70-80%. The strongest expansion to urbanisation
will come from China and India, and even more
largely from emerging countries. At the same
time, oil reserves are likely to reach a limit and to
decline. Innovation in terms of partnerships and
ability to cooperate with non-classical partners
is crucial. Partnership with oil company in R&D
decision within car industry should be progres-
sively forgotten. Nature of partners should change:
architects and urban planners as partners seem to
be much more relevant to anticipate the insertion
of cars in the future city. Cooperation with local
players from emerging countries especially China
and India will be a key advantage considering
that more and more innovations will come from
those markets, which are already driving costs
down. Vijay Govingarajan, with Jeffrey Immelt,
GE CEO, already mention the notion of “reverse
innovation” to explain that Western markets are
becoming an extended market of some innovations
which have been already implemented in emerging
countries locally. Chery from China, that has just
bought Volvo in late 2009 and Tata in India with
the Electric Nano are to be serious competitors in
Western markets in the coming decade.
Nevertheless, the ability to stabilize techno-
logical solutions fitting urban context will make
the difference: urban challenges in Mumbai are
not Paris'ones. For example, in Paris, a system
of public service for bikes with stations all over
the city has been set up. EV development in Paris
should take into account Velib'success.
In terms of corporate strategy, car manufactur-
ers will be able to capture margin where it seems
the most profitable, through partnerships and
operational experiences with other players along
the new value chain (from conception to car end
of life and re-use). As an example, battery busi-
ness seems to be a future Eldorado, as long as one
does not take the risk to fail at the very beginning.
Car manufacturers have direct interest to keep a
close look at the technology without investing
too much in it, but rather stimulate other players
to do so. Once for the most efficient solutions
to emerge, they can buy or cooperate with the
emerging player.
Hence cooperation to market EV, HEV and
other solutions is likely to be the key to success
for future car industry business models. Whereas
during the whole XXth century, cars were as-
similated to speed and performance, XXIst cen-
tury may need a new imaginary axis based on
environmental-friendly values. Successful EV
manufacturers will be also able to create that
new imaginary environment to attract customer
out of “combustion society”. A good image is a
condition to attract customer out of the path of
“car-as-usual”. The fact that China refused to buy
Hummer considering that it has no bright future
is significant of how shareholders are valuing the
goodwill of car manufacturer.
CONCLUSION
Traditional strategic approaches based on competi-
tive market environment analysis are increasingly
challenged. In particular, the political momentum
around global environmental issue (such as cli-
mate change) aspires to transform the traditional
fossil-fuel based-economy into a low-carbon and
sustainable world..
Businesses adopt a large set of strategies in
a wide spectrum comprising “green washing”,
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