Abstract

As a small-size automotive company, Mazda's operations have recovered sharply thanks to their popular models and favorable macro conditions. However, there may be a bumpy road ahead of Mazda because it is lack of scale in comparison with industry leaders, which is becoming increasingly important in the competitive automotive industry due to modular platform trends. In addition, Mazda lacks a strong business presence in emerging markets where the majority of projected growth for the automotive industry is expected to come in the coming years. Major automotive OEMs across the world are investing heavily on technology development such as NEV (new energy vehicle) and modular platform which will strengthen their competitiveness in the future, while Mazda lacks resources in comparison to its gigantic peers to compete. Mazda already experienced collaboration with another automotive company, – Ford Motors, - in the past. Even though the relationship has already dissolved, both companies mutually benefitted from the alliance. This suggests that by forming an alliance with another automotive company, Mazda can make a break through to respond industry trend. Mr. Taisei, who is in charge of the corporate strategy, has to propose to Mazda’s board members, a relevant strategic partner to make Mazda achieve economies of scale and solve other problems at the same time. It seems like Mazda should find a reliable partner and form a mutually beneficial alliance to compete within the automotive industry.

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