What is the difference between credit versus debit – what is the strength and weakness of each.”’
Lastly, the Brexit uncertainty serves as an economic threat towards Jaguar. It leads the automotive industry in a position vulnerable to trade tariffs, trade wars, and disruptions to supply chains. In fact, Brexit would bring the end to Jaguar’s just-in-time delivery for its parts. Consequently, Jaguar would need major investment in warehousing to stock all the goods that might arrive over a longer time period.
Opportunities
Emission policies across the globe and in the UK such as the ‘T-Charge’ in London and the ‘Birmingham clean air charge’ serve as opportunities for Jaguar to become more environmentally friendly when developing its electric cars. Its agreement with Blackberry Ltd on March 2018 [16] to develop technology for next generation vehicles and similarly the opening of the manufacturing plant in Slovakia on October 2018, and technical engineering office in Hungary 2019, [17] act as good starting points to innovate and invest in this opportunity. Doing this will counteract the threats of currency fluctuations from Brexit and the unpopularity of diesel worldwide whilst maintain healthy relationships with its suppliers in central and Eastern Europe.
Future Performance Analysis
Jaguar’s existing strategy consists of tackling its main threats by generating enough investments for the launch of its electric cars as its £2.5bn turnaround programme shows [18]. It is also preparing for the upcoming Brexit deal. Its recent action of cutting 4,500 jobs across the UK [18] is a reasonable strategy as it allows the company to create a budget ready for future changes and face its tough competition.
Jaguar’s main goal should be to try and turn its new products to ‘Stars’ on a BCG matrix where it has the potential to provide a high percentage of the future profits of the business and secure them. To do this, the company could use Porter’s Generic Strategies as a foundation to face this competition.
Cost leadership
Achieving cost leadership may be difficult for Jaguar as it is simply facing too many threats. Two ways in which Jaguar can achieve cost leadership are: by reducing costs by charging industry-average prices or to increase market share by charging lower prices [15]. These strategies may not be ideal for the upcoming electric models as Jaguar cannot afford to charge lower prices for the expensive to manufacture electric cars. However, for the ‘Dogs’ on a BCG Matrix such as the XJ -Range and other F-types, reducing their costs may change the market share and increase profits. This is assu