Logistics and Supply Chain: Jaguar Case Study
Jaguar is believed to have started in the year 1922. Immediately after the Second World War, the companies’ reputation grew abruptly. In the year 1989, the company was purchased by Ford. In 2000, Land Rover which had been bought by BMW earlier in the year 1994, merged with Jaguar which was under Ford to form a more robust Jaguar Land Rover company.
Fundamental reasons for the success of the Jaguar Land Rovers Company
Sustainable development is the way to operate at the Jaguar Land Rover Company. This is the core value that drives the long-term success of the company (Speth, 2016). The company believes that it is critical to preserving its trust from its customers. This helps it to remain to be the most recognized expensive brand thus enabling it to secure its certificate of operation. The company operates under one principle which allows it to act ethically and responsibly towards its customers, suppliers, shareholders, dealers and most importantly, giving the environment its due respect since it is the mother of all the success a company may enjoy. This happens in every business that the company undertakes in the whole world.The Jaguar Land Rover has been successfully investing in its customers, research, and development. This has helped the company to actively manage its social environment (Trefis, 2015). The company has its people at the heart of its success. The skills, passion, and commitment provided by its employees have always been the idea behind the creation of the existing cars (Jaguar, 2016). These people also use those skills to benefit the community in which they live. The company goes ahead to build a healthy relationship with its community through encouraging its employees to play their part well in the city. For example, working with disabled students or becoming school governors. The company also aims at involving a small percentage of its workers in voluntary activities such as education generation, charity work, and the environment. Its graduates spend at least two years while supporting community projects. This is part of the Jaguar Land Rovers Company. The company also continually looks at its operations and how they affect the people who live near its sites (Jaguar, 2016). This helps them to make the correct and informed choices to aid in maintaining a good relationship with its members.
Members of the local council together with representatives of the resident groups also join the Jaguar Land Rover Company to review the company’s plans and tell the company about what they think could be done to help the company function better. This helps the company to enjoy a more significant success when compared to other companies. Its policy is to struggle and meet or exceed the legal and regulatory requirements in every activity the company undertakes. It also periodically reports on its performance to the stakeholders more transparently and openly. This helps the company to realize the threats and weaknesses that it has been going through. This immensely helps it to plan even better on how to attain a more sustainable competition in the market.
Without any doubt, this is one of the reasons why the company enjoys is more continued and robust success in the market industry. The company has also set some commitments, to begin with, it positively engages with the local and global communities in ensuring that its presence adds value and brings up benefits to the society. This is its central commitment to ensuring it is committed to the well being and development of its employees as well as providing support to the social and humanitarian projects. Secondly, in concern to the environment, it is committed to continuously improve the environmental performance of its business and products through the reduction of the emissions, natural resources conservation and optimization of the use of sustainable energy and materials. Its investment in research highly promotes this. The company also makes sure that it delivers exceptional products and services which meet their customers’ needs. It also encourages and helps to ensure a shift towards a low carbon society.Jaguar Land Rover has also managed to emerge as the most significant success as a car assembly plant due to the high records it delivered regarding the high demand for luxury cars in China and North America. The growth was seen to be most influential in China with almost 32 percent. The growth was driven by the increased demand for newer models (Monaghan, 2017). The company continues to invest significantly in new models and innovation. For example, news has been circulating that Jaguar Land Rover company may be unveiling its first electric vehicle later this year (Rossolillo, 2018). In respect to its I- Pace, the company is set to unveil a couple of new electric cars for the 2019 production year. It is clear that the luxurious company has been holding up a considerably small percentage in the United States market share. But, due to its recent moves of innovations, the company may propel its significance in the United States market share to a top rank. Its step to developing electric cars is very critical to our environment. This is because it helps to reduce greenhouse gases emission. In the United States, vehicles are responsible for almost half of the greenhouse gases produced every year globally. This is because the country makes up to nearly thirty percent of the cars in use globally. This was according to a report which was issued in the year 2006 by the environment defense.
Transportation in the country has therefore been contributing to roughly thirty percent of the greenhouse gases emissions in the United States. Some efforts to curb this menace such increasing the greenhouse gases and advising people to consider using public means of transport have fallen on deaf ears (GinaMarie, 2011). Therefore, the introduction of the electric cars by the Jaguar Land Rover will see a reduced use of fossil fuels a thing which will highly contribute to the reduction of the greenhouse production. This will profoundly market the company considerably since citizens will have to spend less money on transport compared to the fossil fuel transport since electric power is relatively cheap compared to fossil fuels, and also the environment will also be profoundly saved.
How Jaguar Land Rovers Company maintains its competitive advantage
Competitive advantage is what makes a company than the competition in its company’s minds (Kimberly, 2017). Competitive advantage relies on three determinants. They include; a benefit which is how good the product from the company is to the users. Jaguar Land Rover must be evident in the interests of the product it provides. The company has to make sure that what it produces is something that the customers genuinely need. The product must offer real value to the customers. The company must know the features of its product and how it is significant to the customers. Secondly, we have the target market (Kimberly, 2017). Jaguar Land Rover Company must know who exactly its target buyers are, who buys from it and how it can make their lives better. For example, Jaguar Land Rovers Company targets the VIP buyers who need luxury cars. Then thirdly is the competition. This does not only include companies of the same type as the original company but also everything that the companies could do to subsidize the need of the products from the particular company (Queensland, 2017). For a company to maintain its competitive advantage, it must practice the following attributes.
In business, the winners who are clear no matter the size of their business are the ones who can find a new definition around the world of innovation (MacInnis, 2018). They also use new ways of communicating the value of change to their key customers. This can be achieved through the practice of collaboration. Customers are always in the box seat. They are the one who chooses to visit a company’s website. They decide to either view the advertisements on the site or not. When a company sends an email to its customers, they are the ones to choose if to open it or not. Therefore, the organization is entitled to collaborating with its customers. It can achieve this collaboration through the use of social media tools such as Facebook, Twitter, blogs or even forums (Lewis, 2018). Jaguar Land Rover organization gets the real value of innovations they come from its customers because they always tell the companies better ways of doing things. For the company to continue enjoying the competitive advantage, it must invite its customers to be part of the organizations planning. It can also be of significant benefit when an organization creates a collaborative culture in its operational activities with its customers.
The Jaguar Land Rover Company also needs to offer an understanding and useful insight into it to continue enjoying its competitive advantage. Communication with the customers can be as simple as making a phone call or submitting an online survey for a company (Conlon, 2013). If this is done with a significant sensitivity, it can provide an insight for the company to change something that was making it lose business or help it to create something that will make it continue enjoying the competitive edge. It is also very ideal for a company to share its story for it to keep enjoying the competitive advantage. It is good for the company to stand for what it knows. So many companies have not realized this. Many people prefer buying from a business they know and trust. They get to know what a company has brought to the market through what it has updated on its website. Potential customers give asking themselves questions every day whether to contact a particular business or not. The organization can answer these questions through giving its whole story for the customers to make a decision based on what the organization is. The company is just required to be real and honest with what it offers. This will help it build a long-lasting relationship with its customers while in turn making it continue enjoying the competitive advantage.
The Jaguar Land Rover organization needs to be customer-centric (Hill, 2013). It needs to step into the customer’s shoes every day through consciously thinking about its customer’s touch points such as its websites, business cards, and staff. This awareness helps a company to change how it does things.
Suitability of Jaguar Land Rovers Company’s ways of maintaining a competitive advantage to other companies
Jaguar Land Rover company is a company which is on the brink of revolutionary change. It enjoys the competitive market advantage through innovation, research, and development (PLC, 2015- 2016). Other companies as well emulate this company to advance their stability in the competitive market. This is because the success of any company is always based on its continuous process of anticipating new market trends (Vizard, 2014). If a company formulates an excellent strategic plan and employs a right mapping tools that will help it to identify the fastest growing opportunities in it, then automatically it will maintain its competitive advantage in its market of operation.
An organization has the vital needs that it needs for it to address its challenges in a way that will end transforming the way it operates and competes with the other organization (Rosano, 2008). This is referred to as sustainability. Sustainability concept is an aspect that brings (Autostadt GmbH, 2009)environment, society, and the economy together as the three aspects of sustainability. It also brings the interaction between these three components. This is concept is relevant to the Jaguar Land Rover Company. Through its strategic plan, the company has dramatically reduced the impact of their cars on the environment (Embedding sustainability through enterprise governance, 2009). This has been achieved through several methods such as thee- terrain, more sustainable manufacturing and reduction of the emission of the greenhouse gases. Jaguar Land Rover’s sustainability governance structure is part of the reason why sustainability is so embedded strategically in the way they do business (Corporate, 2014). It is this framework and architecture which enables active cross-functional engagement and optimizes the value-add from the finance team
Jaguar Land Rover (JLR), is the most significant automotive manufacturer in the United Kingdom, future-proofing of its business and embedding environmental innovation in everything it does will be substantial for the creation of stable foundations for responsible, profitable growth. To support its vision, the Jaguar Land Rover Sustainability Committee needs to develop a common and a modern understanding of sustainability issues, in the context of global system pressures, for its members and close associates.
Jaguar Land Rover group believes in wealth creation and not the economic parameter of profitability. Whatever they earn, whole-heartedly they gift it to the society in the various forms. The current leadership of the group is with Dr. Ralf Speth; he was appointed in 2010. They have booked many directions and been pioneered in various employee oriented efforts. As a result Jaguar Land Rover group is the most respected business conglomerate in the world. The individual profitability or the loss-making incidences are not affecting the strong rootholds of the group. Collectively the group has many companies operating on different continents on the earth. The collective financial performance will battle the economic threats prominently to their group companies.