Business Question

CompetencyIn this project, you will demonstrate your mastery of the following competency:
• Communicate professionally to diverse internal and external audiences
Scenario
Your presentation to stakeholders was wildly successful and the company has determined that it
is in their best interest to move forward with the diversification strategy you recommended.
Since you did so well with the presentation, you have been asked by company leadership to
prepare a draft of the press release that will go out to announce this new strategy. Your press
release is meant for the external audience that was not represented at the all-stakeholder meeting:
a group that includes customers, vendors, suppliers, and the general community.
Directions
Using the template provided, draft a press release that reflects your company’s new venture and
how it affects the general external audience. Your press release should address the
following rubric criteria:
• Address the key points appropriate for external audiences.
• Summarize the diversification decision.
• Explain why the decision was made.
• Explain where in the marketplace the new products are launching.
• Identify who benefits from this product in both the company and the community.
Project Four Template
Press Release
(Replace the bracketed text with your responses. Remove this note before submitting to your
instructor.)
[INSERT ATTENTION GRABBING HEADLINE IN ALL CAPS.]
[Insert strong lead sentence.]
[Address the key points appropriate for external audiences.]
[Summarize the diversification decision.]
[Explain why the decision was made.]
[Explain where in the marketplace the new products are launching.]
[Identify who benefits from this product in both the company and the community.]
[Insert closing paragraph incorporating the who, what, when, where, and why.]
[your name]
Sales Department Manager
Milestone One Template
Executive Summary
5/27/2024
Description of Problem
The company has been building engines for the automotive industry in the United States.
However, it is considering diversifying into another industry to explore new opportunities and
increase revenue sources. The diversification is to make the company products be utilized in
other industries, which will assist in mitigating risks linked to market fluctuations in the
automotive industry and increase the overall revenue. With this diversification idea, the
challenge is to identify an industry that has a promising future for the company, and that will
match the technological capabilities of the company. The diversification will reduce the
dependency on a single market and assist in capitalizing on emerging trends and technological
advancement in other sectors. An analysis of the current U.S. automotive manufacturing industry
will assist in knowing what exactly to look for while exploring the new industry. The new
industry, in this case, is the U.S. telecommunication industry.
Description of the Current U.S. Automotive Industry
The automotive industry in the United States accounts for 3 % of the U.S. GDP, with a
total value of 1.53 trillion dollars in revenue from road vehicles (Carlier, 2023). It is a major
player in the local and global economy, where it ranks second in the manufacture of motor
vehicles. In the United States, Ford, General Motors, and FCA are the major players in the
automotive industry, where they produce and sell more than half of the total industry output
(Klier & Rubenstein, 2020). The sector manufactures different types of vehicles, from light ones
to heavy trucks. Based on the fuel types, electric vehicles have a sale of 15%, 25% for hybrid
vehicles, and 60 for gasoline (Jung, 2020). Most of the sales are from the southern and Midwest
regions of the major automotive manufacturing hubs.
Current Automotive Market Trends
Trend towards Different Types of Motors
The automotive industry’s profound transformation stems from the shift towards
sustainability and environmental consciousness. There has been a major shift from traditional
gasoline engines to electric and hybrid motors. Stricter environmental regulations and increased
awareness of climate change is making customers to change their vehicle preferences (Klier &
Rubenstein, 2020). Governments from all over the world are implementing policies to reduce
carbon emissions. They are offering incentives for electric vehicle manufacture and purchases.
As such, most automotive manufacturers are heavily investing in research and development to
improve the range and affordability of hybrid and electric vehicles.
Trends in Customer Demands
There is a change in the features customers are looking for when purchasing a car. They
prefer vehicles that have advanced technological features and are aesthetically appealing on the
interior and exterior. Customers are checking for safety features such as automatic emergency
braking, lane-keeping assistance and adaptive cruise control. They are also going for vehicles
that have features such as WI-FI, integrated GPS and advanced driver-assistance systems. They
are also keen on the exteriors and interiors of a vehicle such as the trims, color choices and
finishes to fulfill different tastes.
Trends in Body Types
The purpose of purchasing a vehicle is to make a customer choose a certain body type. Currently,
consumer preferences is more versatile on trucks and SUVs. SUVs are preferred for their
spacious interiors, safety features, and higher seating positions. Individuals who want a vehicle
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for more cargo and family uses highly prefer these vehicles, thus there is a decline in the demand
for the sedan.
Description of the New Industry
U.S. Telecommunication Industry
The telecommunication industry plays an essential role in the modern connectivity for
both personal and business communications. The industry provides services such as internet
access, fixed-line telephony and mobile communication.
It is an attractive industry due to the high growth potential driven by the escalating
demand for faster and more reliable communication. Various business sectors need strong
telecommunication infrastructure because of digital transformation. Technological advancements
such as the innovation of fiber optics, Internet of Things, and 5G network are contributing to the
growth of the telecommunication industry. These advancements are increasing the reliability and
speed of communication networks. The increased Internet penetration in urban and rural areas is
enlarging the customer base, thus increasing the demand for high-speed Internet services.
The Federal Communications Commission valued the United States telecom industry at
133 billion U.S. dollars in 2023, which reflects the extensive infrastructure of the industry
(Taylor, 2023). The industry is expected to grow even further with the ongoing investments and
upgrades in networks. Telecommunication services are available nationwide, but they get a lot of
revenue from the urban areas where a lot of people have settled and have a lot of businesses.
Current Market Trends in the New Industry
The industry’s trending products and services include 5G services, which provide faster
download speeds, and fiber optics, which provide internet services using high-bandwidth
applications such as online games and streaming (Liu, 2022). The customer demands in this are
high-speed internet, reliable mobile services, and integrated digital solutions. These demands are
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from individuals and businesses that are looking for seamless connectivity across different
platforms.
Appendix A
Explanation from Porter’s Five Forces Analysis of the New Industry
Rivalry among Existing Competitors
Intense competition exists in the U.S. telecommunication industry from established
companies such as Comcast, T-Mobile, and AT&T. These companies compete in service quality,
prices, and technological advancements to ensure each gets a significant market share.
Threats of New Entrants
The threat is low due to the high capital investment required for infrastructure, brand
loyalty to already established customers, and strict regulatory requirements.
Bargaining power of Suppliers
The power is moderate as suppliers offer critical infrastructure development components
and advanced technologies. However, the established companies have several suppliers, making
it easy for them to negotiate favorable terms.
Bargaining Power of Buyers
The power is high as there are several choices, and the customers can choose the telecom
providers and thus can easily switch services to where they find better deals.
Threat of Substitute Products
The threat is moderate since even though traditional telecom services experience
competition from internet-based communication services, the need for reliable internet and
mobile services neutralizes this threat.
Appendix B
Summary of Findings from Porter’s Five Forces Analysis Comparing Both Industries
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Rivalry among Existing Competitors
In the two industries, there is high competition from the already established brands such
as Ford and General Motors in the automotive industry and Comcast and Verizon in the
telecommunication industry. These established companies compete for a larger market share,
have heavily invested in innovation and have competing marketing strategies. The
telecommunication industry is in high demand for high-speed and reliable connectivity for both
businesses and individuals.
Threats of New Entrants
In the automotive industry, the threat is moderate, and low in the telecommunication
industry. There are higher barriers to entry in the telecommunication industry than in the
automotive industry. The regulatory compliance, capital investment required, and extensive
infrastructure make it complex for the new players to enter the new market (Skiti, 2020). In
contrast, even though substantial capital is required in the automotive industry, new companies
can join the industry by leveraging technological advancements to enter the market.
Bargaining Power of Suppliers
The two industries are experiencing moderate to high supplier bargaining power, though
in different dynamics. The power in the automotive industry is higher for certain specialized
parts, while in telecommunications, multiple suppliers and negotiable contracts mitigate the
power.
Bargaining Power of Buyers
In the two industries, buyers have bargaining power as there is the availability of choices
and comparison tools. In the automotive industry, the power comes from the different brands and
digital platforms that offer information, while in the telecommunication industry, there is a high
switching ability and multiple service options that give buyers significant leverage.
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Threat of Substitute
The two industries face moderate threat, though the nature of these substitutes differs. In
the automotive industry, the substitute comes from alternative types of vehicles and
transportation methods. In the telecommunication industry, the substitute is from Internet-based
communication services such as Voice over Internet Protocol.
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References
Carlier, C. (2023). Automotive industry in the United States-Statics and Facts. Statista.com.
https://www.statista.com/topics/1721/us-automotive-industry/#topicOverview
Jung, H. (2020). Fuel economy of plug-in hybrid and hybrid electric vehicles: Effects of vehicle
weight, hybridization ratio, and ambient temperature. World Electric Vehicle
Journal, 11(2), 31. https://doi.org/10.3390/wevj11020031
Klier, T., & Rubenstein, J. (2020). Overview of the U.S. Automobile Industry. New Frontiers of
the Automobile Industry: Exploring Geographies, Technology, and Institutional
Challenges, 41-66. https://doi.org/10.1007/978-3-030-18881-8_2.
Liu, X. (2022). Enabling optical network technologies for 5G and beyond. Journal of Lightwave
Technology, 40(2), 358–367. http://dx.doi.org/10.1109/JLT.2021.3099726
Skiti, T. (2020). Institutional entry barriers and spatial technology diffusion: Evidence from the
broadband industry. Strategic Management Journal, 41(7), 1336–1361.
https://doi.org/10.1002/smj.3146
Taylor, P. (2023). Telecom in the United Stated-Statistics and Facts. Statista.Com.
https://www.statista.com/topics/11603/telecoms-in-the-us/#topicOverview
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Appendix A
Figure 1: Explanation from Porter’s Five Forces Analysis of the New Industry
Appendix B
Figure 2: Summary of Findings from Porter’s Fi
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9
Diversification to the Telecommunication
Industry
Introduction
 The company seeks to diversify into the telecommunication industry.
 The diversification will assist in mitigating risks linked to market fluctuation in
the automotive industry.
 Analyzing the current trends in the automotive industry will give insights into
the dynamics shaping the two industries.
 Data visualization and analysis will assist in making informed decisions that
benefit the company and the stakeholders.
The Current State of the U.S. Automotive
Manufacturing Industry
 Gasoline vehicles are the leading in the market
with 60%.
 There is a significant presence of hybrid vehicles
by 25%.
 Electric cars are at 15%, a growing presence
(Jung, 2020).
 Even though gasoline prices are still high, they
are decreasing at an increasing rate.
Current Automotive Industry Trends-Motor Types
 There has been a major shift from gasoline
engines to electric and hybrid motors.
 Every year, there is a decline in the number of
gasoline vehicles sold.
 There is a significant increase in the number of
hybrid and electric vehicles sold.
 The shift is due to changes in consumer
preferences.
Current Automotive Industry Trends-Customer
Demands
 The customers’ demands are in the form of
advanced features, technology integration, and
aesthetic appeal.
 Cars with advanced safety features is 40%.
 35% of cars have technology integrations (Avikal et
al., 2020).
 Cars with an aesthetic appeal, such as high-quality
interiors, are 25%.
Current Automotive Industry- Body Types
 Customers currently prefer trucks and SUVs to
sedans.
 The two body types are preferred for their
spacious interiors and safety features.
 SUVs are suitable for family use and have a
high driving position.
 In 2023, SUVs had the highest demand at 45
percent, followed by trucks and sedans.
Trends in Telecommunication Industry- Expected
Growth Areas
 It has high growth potential due to increased
demand for reliable and faster communication.
 The 5G network is one of the areas expected to
grow.
 There is fiber optics due to the demand for high
loading speed in organizations.
 Fiber optics supports high-bandwidth
applications such as online gaming.
Trends in the Telecommunication Industry-Types of
services offered
 The 5G services are the most trending services,
with an approximation of 50%.
 Fiber optics comes second with 30%
 The Internet of Things has a 20%
 These are the services in high demand in the
telecommunication industry
Trends in the Telecommunication IndustryCustomer Demand
 Customers are demanding high Internet
speed, mobile services, and integrated digital
solutions.
 There is an upward trend for high-speed and
reliable connectivity.
 Increase use of smart devices in personal and
business communication increases the
demand.
 Customers want seamless connectivity across
different platforms.
Summary of the Collective Data for the Two
Industries
 There are significant changes in the two industries, due to shifts in
consumer preferences, regulatory changes, and technological advances.
 The automotive industry is working to meet the needs for sustainability and
advanced technology.
 Telecommunication focuses on offering seamless experiences in terms of
high-speed connectivity.
 Understanding these trends will help in strategic decision-making for the
engine manufacturing company
What Data Is Not Saying About the
Telecommunication Industry?
 The data does not provide information on regulatory challenges such as
licensing requirements.
 There is no information about the infrastructure limitations, such as
network coverage gaps.
 There is no information on cyber security risks now that it relies on digital
technologies.
 It lacks information on market disruptions, maybe from disruptive business
models and shifts in consumer behavior.
Decision Making Models
 The Rational model is a step-by-step approach to decision-making, (Chi,
2023).
 Intuitive Model- the model depend in gut feelings, past experiences and
instincts to guide decision making (Decision Innovation, 2024).
 Recognition-Primed Model- It focuses on recognizing patterns in familiar
situations to derive an effective solution.
 Among the three, the Recognition-Primed Model is the best for
diversification into the telecommunication industry.
The Choice of Decision-Making Model
 The decision of diversification is complex and in uncertain environment.
 The decision is time-sensitive and requires prompt action to capitalize on
emerging opportunities.
 The model allows expertise to guide decision-making based on past
experiences.
 The model allows for flexibility, considering that the telecommunication
industry continues to change due to technological advances.
References
Avikal, S., Singh, R., & Rashmi, R. (2020). QFD and Fuzzy Kano model-based approach for classification of
aesthetic attributes of SUV car profile. Journal of Intelligent Manufacturing, 31(2), 271-284.
https://doi.org/10.1007/s10845-018-1444-5
Chi, C. (2023). Rational Decision Making: The 7-step process for making logical decisions.
https://blog.hubspot.com/marketing/rational-decision-making
Decision Innovation, (2024). Intuitive Decision-making. https://www.decision-makingsolutions.com/intuitive_decision_making.html
Free Management books, (2023). The Recognition-Primed Decision Model.
https://web.archive.org/web/20220926215218/http:/www.free-management-ebooks.com/news/recognitionprimed-decision-model/
Jung, H. (2020). Fuel economy of plug-in hybrid and hybrid electric vehicles: Effects of vehicle weight,
hybridization ratio, and ambient temperature. World Electric Vehicle Journal, 11(2), 31.
https://doi.org/10.3390/wevj11020031,
References
Klier, T., & Rubenstein, J. (2020). Overview of the U.S. Automobile Industry. New Frontiers of the Automobile
Industry: Exploring Geographies, Technology, and InstitutionalChallenges, 41-66. https://doi.org/10.1007/9783-030-18881-8_2.
Taylor, P. (2023). Telecom in the United Stated-Statistics and Facts. Statista.Com.
https://www.statista.com/topics/11603/telecoms-in-the-us/#topicOverview

Diversification to the
Telecommunication Industry
Key Message
 The company has made a diversification decision in the telecommunication
industry.
 It is a move to respond to the current market conditions in the automotive
industry.
 It is also a forward strategy towards securing long-term growth and stability for
the organization.
 The volatility and regulatory pressures in the automotive industry prove the need
for diversification
Decision about the DiversificationQuantitative Data Visualization
The sales distribution of gasoline,
electric, and hybrid vehicles shows
the shift towards more sustainable
options.
The shift shows that indicates that
the company’s dependence on
gasoline engines should be
diversified to remain competitive.
The sales trends show a decline in
gasoline vehicle sales.
The decline shows a shift towards
sustainable and advanced
technology.
Decision about the Diversification-Quantitative
Data Visualization cont’d
 There is a high demand for technology integration in vehicles.
 Customers prefer vehicles that have technological features such as WI-FI
and GPS.
 These demands align with those in the telecommunication industry of 5G
services and fiber optics.
 Therefore, diversifying to such an industry aligns with the strategic goals of
being part of high-growth sectors that are sustainable.
Decision about the Diversification-Qualitative Data
Visualization
 From the derived data of the two industries, there
are key themes from what customers prefer the
most.
 The theme of sustainability, connectivity, and
innovation stems from what customers are looking
for in the two industries.
 These themes indicate that customers are shifting to
sustainable technological solutions.
 Therefore, the customer preferences match the
company’s move to diversify into the
telecommunication industry.
Decision about the DiversificationQualitative Data Visualization cont’d
 There is an alignment of technological advancements and regulatory trends across
both industries.
 For both, the push is on sustainable technologies supporting diversification.
 For example, vehicles are now made using recyclable material to minimize
environmental impact, and there is integration on the Internet of Things (LlopisAlbert et al., 2021).
 There is 5G network meant to enhance connectivity in developed and
underdeveloped areas.
Likelihood for Success
 The possibility for success is based on the market potential and growth trend
in the telecommunication industry.
 Telecommunication presents a robust growth direction with a sustainable
market potential.
 The company already has existing technological capabilities that can be
leveraged in the telecommunication industry.
 Therefore, there will be a smoother transition and diversification process.
Likelihood for Success cont’d
 The diversification decision will succeed since the company is already
accustomed to the regulatory environment in the telecommunication industry.
 There is significant investment in both the private and public sectors.
 The company has a competitive advantage due to its technological expertise.
 The company is already known to work for high-quality, innovative, and
reliable products.
Impact of Moving to Telecommunication
Industry
 The diversification decision will reduce the risks that come with depending on
one sector, such as market fluctuations.
 For internal stakeholders such as employees, there will be new career paths and
chances for career enhancements.
 External stakeholders, such as customers, will benefit from the integration of
telecommunication services such as IoT solutions.
 Suppliers and partners will get into partnerships with other suppliers in the
telecommunication industry
Summary of the Findings
 There is a rigid rationale for the diversification decisions into the
telecommunication industry.
 Per the quantitative data, the shift towards sustainable vehicle options
shows the need for diversification.
 Qualitative data matches consumer preferences in the two industries.
 Technological advances and regulatory trends support the decision to
diversify
Research, Conclusions and Reasoning
 The automotive industry is experiencing significant transformation due to
changes in the regulatory frameworks and shifts in consumer preferences.
 The decline in gasoline vehicle demand will have severe long-term effects
on the company, thus the need for diversification.
 The company seeks to diversify into an industry with a high growth
potential.
 The diversification is to give a sustainable source of revenue and spread the
risks.
Rationale
 Based on the Recognition-Primed Model, the diversification decision
should not be rigid but flexible (Free Management books, 2023).
 The telecommunication industry keeps on changing, thus calling for
adjustments in decisions to meet new demands.
 There will also be leveraging of technological capabilities for a smoother
transition.
 There must be adherence to the regulatory framework in the transition.
References
Avikal, S., Singh, R., & Rashmi, R. (2020). QFD and Fuzzy Kano model-based approach for classification of
aesthetic attributes of SUV car profile. Journal of Intelligent Manufacturing, 31(2), 271-284.
https://doi.org/10.1007/s10845-018-1444-5
Free Management books, (2023). The Recognition-Primed Decision Model.
https://web.archive.org/web/20220926215218/http:/www.free-management-ebooks.com/news/recognitionprimed-decision-model/
Jung, H. (2020). Fuel economy of plug-in hybrid and hybrid electric vehicles: Effects of vehicle weight,
hybridization ratio, and ambient temperature. World Electric Vehicle Journal, 11(2), 31.
https://doi.org/10.3390/wevj11020031,
References
Klier, T., & Rubenstein, J. (2020). Overview of the U.S. Automobile Industry. New Frontiers of the Automobile
Industry: Exploring Geographies, Technology, and InstitutionalChallenges, 41-66. https://doi.org/10.1007/9783-030-18881-8_2.
Llopis-Albert, C., Rubio, F., & Valero, F. (2021). Impact of digital transformation on the automotive
industry. Technological forecasting and social change, 162, 120343.
https://doi.org/10.1016/j.techfore.2020.120343