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Sharing Economy - Downstream Extension of the Value Chain of German Automotive Manufacturers and of their Competitors

Csizmazia, Roland Attila (2015): Sharing Economy - Downstream Extension of the Value Chain of German Automotive Manufacturers and of their Competitors. Published in: International Journal of Knowledge and Innovation in Business , Vol. 2, No. 3 (10 November 2015): pp. 1-24.

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Abstract

Although recent worldwide sales figures of the major German automotive manufacturers (Volkswagen, Daimler, BMW) are excellent, the European sales level has not been recovered post to the crisis (Statista 2015a and ICCT 2014). Multiple reasons are responsible for this sluggish recovery. The most significant factors are the continuously decreasing levels of real income, changes of mindset, the emerging importance of sustainability, the compliance with the increasingly stringent emission rules set by governments of developed countries, and the increasing costs of vehicle ownership run by internal combustion engine. German automotive manufacturers have seen the modifications of the market environment. Hence, they have tried to find the appropriate response by both introducing electric vehicles (EVs) and services that specifically target the younger generations. The main goal of this case study is to analyze how and why German automotive manufacturers and their competitors, e.g., the German railway company, respond to these challenges by extending their value chains and how they attempt to transform from classical automotive manufacturers to mobility providers.

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