peer’s blog: KIA Falling Off the Ladder
supportive link: Tesla Motors’ Success Gives Electric Car Market a Charge
After reading my peer’s blog post, I agree with his analysis of KIA introducing its new luxury model. It is very clear that KIA is at a very vulnerable position of this branch. It’s hard even for BMW(who ranks second in this branch) to compete with Mercedes, so it is almost impossible for KIA to climb up to the top of the ladder within a certain time period. It is necessary for companies to look for unoccupied ladders, where they have the most potential to become the leading role.
For those existing already in the industry and being dominant, it is important to have sustainable advantages. Tesla sets an example. After it first introduced a fully electric model, it also has exerted great efforts to develop its charging technologies. The company has signed up contracts with many power suppliers. These are activities that create fits to enhance the company’s business model. And they help the company to stay competitive because their strategy cannot be imitated easily by rivals. To conclude, companies should be competitive enough to avoid being threatened by new entrants.