Taken from http://www.sustainabilitybythesea.org/wp-content/uploads/2013/03/toyota-prius.jpg

I think this is an absolutely intriguing article that discusses that integrating transportation method which focuses on fuel efficiency is not a good enough measure to prevent greenhouse emission issues.

This is particularly interesting because of how we discussed in one of the lectures about fuel efficient cars (particularly Tesla cars, the Nissan leaf, and the Toyota Prius), discussing about its business plan and how it was effective in creating a point of difference which focuses on emission standards. In my particular group we discussed about how our environmental standards are improving, and that these fuel efficient cars can be seen as a solution to such environmental issues.

I think if this study gains further evidence, and reaches the awareness of the public it may significantly damage the businesses which invest greatly in fuel efficiency. There are a great deal of automobile companies which has greatly invested in fuel efficiency, as they believed it was the future of the market. If the general view on the fuel efficient automobile incorporates the fact that it may not be a good enough solution, potential customers will be less willing to invest in such markets – significantly cutting its revenue streams.

In the current market, having a high fuel efficiency is a very strong point of differentiation that can greatly attract consumers that have high environmental standards. However, the strength of this point of differentiation will be weakened greatly. In terms of Porter’s four generic strategies, it will definitely fit under the focus strategy, however will not really go under either of the cost or differentiation column – therefore can be seen that incorporation such point of difference will be a flawed strategy to take.

http://www.cbc.ca/news/business/road-transportation-emissions-1.3314447