The auto industry: adapt to disruptive innovations or risk extinction

Abstract

Purpose

This paper aims to examine the automotive industry and how it ripe for disruption. By examining the current state of the industry and how technology will shape the future of the car, this paper outlines why the automotive industry is ready to be disrupted and provides insights as to whom the major players may be in the future and why.

Design/methodology/approach

This paper uses examples from companies and the media to identify how the automotive industry is ready to be disrupted.

Findings

This paper identifies that the automotive industry is ready to be disrupted. With Tesla having secured over 400,000 pre-orders for its new Model 3 sedan, there is a movement that will pave the way to a new era of the automobile.

Practical implications

This paper demonstrates that a new way of thinking is needed for top managers at traditional automakers. In this paper, a new way of thinking about the future of the car is presented.

Originality/value

This paper takes a new perspective on what the future of the automobile may resemble and the companies that will likely be involved as a result of the disruption in the industry.

Citation

Butler, F.C. and Martin, J.A. (2016), "The auto industry: adapt to disruptive innovations or risk extinction", Strategic Direction, Vol. 32 No. 11, pp. 31-34. https://doi.org/10.1108/SD-05-2016-0069