Question Using the Value Chain model as a point of reference, identify and discuss which of SEAT's internal value-adding activities will be most relevant in supporting SEAT to launch the 'Minim?' into your chosen city. ? Remember that you can present a summary of key points in a table or diagram.? A SWOT analysis is not acceptable.? Refer to the Assignment Task 3 Briefing slides when preparing thisDubai is the city
BACKGROUND TO ASSIGNMENT The planet is becoming more urban. By 2030, more than ve billion people 7 about 60 percent of the world population 7 will live in cities. We are also becoming more mobile and more connected. New technologies and business models are pushing aside the privately-owned automobile and other less efcient modes of transportation. Whether from autonomous vehicles, the electrication of transportation, shared networks of'ears, scooters and bicycles, or the advent of SC wireless, the world of mobility is changing almost daily. Nowhere will that transformation be felt more acutely in the coming decades than in the world's major cities where increased urban density and congestion make the tasks of creating and maintaining urban transport systems ever more complex. This is why developing and improving urban mobility is a top priority of cities around the globe. If a city cannot move its people, goods and data efciently, it is difcult to see how it thrives. Three broad technological trends will be primarily responsible for reshaping urban mobility in every city 7 digitization, automation and electrication. The sharing (or collaborative) economy, a fourth trend, has led to new business models in which the mobility service provided is more important than its ownership... SEAT, SA. is a Spanish automobile manufacturer with its head ofce in Martorcll (near Barcelona), Spain. The rm has been a Wholly-owned subsidiary of Volkswagen Group since 1986. The rm is strategically repositioning itself from a vehicle manufacturer to a provider of shared mobility services (i.c. Where users pay for transportation only when they need it, rather than owning a personal vehicle that is not used most ofthe time), especially in increasingly crowded urban areas. As stated by Luca De Moo, the rm's Chairman: \"We are convinced that vehicles will become the second largest connected platform after the mobile phone and we will have the chance to integrate them into a rich ecosystem. This transformation forces us to innovate and move beyond the scope of being just a carmakcn stretching our value chain towards new mobility services, platforms and data businesses As part of this repositioning, SEAT has identied 'compact urban mobility' (is. short commutes less than 10 kilometres within the city environment, using a small vehicle) as a core area for strategic deveiopment. The rm unveiled its \"Minimo' concept vehicle at the 2019 Mobile World Congress to demonstrate SEAT's vision ofthe 'compact urban mobility' oftomorrow. Integrating the elds of electrication, connectivity and shared mobility the 'Minimo' is a 2-passenger quadricycle primarily intended for business-to-consumer free-floating carsharing providers* that has been designed to: ' have a considerably smaller ecological footprint (3.] square metres) than a normal car (72 square metres) while providing safe, agile travel and easy parking ' release zero emissions due to its allelectric powertrain reduce the operating costs of carsharing providers by 50%, as the integrated battery-swap system means the vehicle rarely needs to be taken to a recharging point ' provide a convenient and smooth digital user experience for users based on hyperconneetivity with built-in S-G technology allow the vehicle in the future and subject to further development of autonomous technologies - to pick up the user when requested, thereby solving one of the main carsharing user pain points. Delayed due to the global pandemic and global semiconductor chip shortage, the 'Minimo' will now enter into production in February 2024, leaving the rm with only 12 months to decide which city from across the globe will be most attractive for the product launch. SEAT's international strategy team have already undertaken some initial desktop research and have identied Stockholm (Sweden) and Dubai (United Arab Emirates) as potentially attractive markets for the product launch of the 'Minimo'. As an external consultant, you have been commissioned by the team to evaluate which of these 2 potential city-level markets is more attractive to launch the 'Minimo' vehicle into and to then analyse the more attractive city-level market in greater detail. * Two of'the main types of!)usiness-to-consumer car-sharing models are: Round-trip Station-based earshot-ting 7 the user only has the choice of a round trip. picking the car up at Station A and returning it to Station A when they arenished. Those who plan trips ahead of'rimc or are lookingfor a car at a specific time would benefitfrom these sewiccs, Free-oating carsharlng (eig. cango. Gig or Drichow) 7 the user can see which cars are available within a set operating area on a mobile app and choose the one closest to them. Once the user isnished using the can they can drop of)T the car at any location within the set operating area, saving time and avoiding unnecessary trips. Those who are spontaneous and decide lastminute that they need a car would benefit from these services. SEAT intends to sell its 'Minimd ' vehicle to businesstoconsumer freeoating
