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3.Gaining competitive advantage Market penetration/expansion, owning innovation and having an effective corporate strategy development process top the list of strategic initiatives for the C-suite to drive competitive advantage. Market penetration/expansion strategies Product/service innovations and collaborations Marketing and sales initiatives Presence/success in new Owning innovation and Digital marketing and emerging markets and in collaborations (within sales strategy are seen regional niche segments/ 67% and outside the auto 77% as critical, followed by 66% bodystyles continue believe market penetration/ industry) are perceived believe product/service the need to invest in believe marketing and sales to be a top priority expansion strategies to offer signifi cant innovations and collaborations customer analytics. initiatives enhance value on the C-suite growth enhance value proposition competitive advantage. enhance value proposition Interestingly, innovative proposition agenda. For suppliers, However, business model/ fi nancing and retail in particular, supporting commercial collaboration strategy for alternate automakers’ localization opportunities with non- powertrain vehicles were efforts by expanding into 28% auto companies are yet 26% at the bottom of the list. 26% key markets enhances feel well-prepared to to be fully exploited. their value proposition. implement market feel well-prepared to feel well-prepared to penetration/expansion implement product/service implement key marketing initiatives strategies and collaborative and sales initiatives initiatives of respondents selected presence and success 39% of automakers identifi ed leveraging online, 49% in high-growth markets and segments 42% of respondents selected technology or digital and social media for marketing 69% are doing it to enhance value proposition business model collaborations and sales suppliers selected ownership of innovation Only 56% of Asia-Pacifi c respondents are doing it to 80% and R&D 12% are well prepared differentiate from competition Only 44% of them are focused on hiring talent for 45% of captive fi nance companies selected innovation access to intelligence and data analytics 57% of suppliers selected global presence to around customers support automakers for localization of captive fi nance companies selected 80% are doing it to differentiate from competition European suppliers are better prepared, as compared to 45% residual value management US and Asian suppliers 8 | Changing lanes 2015-16 | The automotive C-suite’s agenda

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