A public limited corporation (PLC) from the United Kingdom operating in this sector includes Jaguar Land Rover Automotive PLC. Although the Jaguar Land Rover car company is headquartered in Whitley, Coventry, England, it produces vehicles worldwide. Its primary business is creating, producing, and distributing high-end automobiles marketed under the Jaguar and Land Rover names. Production facilities for Jaguar Land Rover vehicles may be found in several nations, including the United Kingdom.
Market Structure of Jaguar Land Rover Automotive PLC
Motor vehicle production is an oligopoly in the automotive manufacturing business. The market is dominated by a few major enterprises in an oligopoly. “Big players” dominate the car manufacturing business. Jaguar Land Rover and other global brands benefit from economies of scale (Hemzo, 2023). They have the money, technology, and distribution to compete (Hemzo, 2023). The car business demands large expenditures in R&D, new technology, production infrastructure, and marketing. This high entrance barrier keeps smaller enterprises out, allowing a few big ones to dominate (Hemzo, 2023). The largest corporations also compete fiercely. Features, design, performance, and branding distinguish each company’s goods. Product innovation and technical developments are vital to competitiveness.
The vehicle manufacturing sector has complicated supply chains and dependency on suppliers of components, raw materials, and services (Hemzo, 2023). These linkages affect industrial dynamics. Safety, emissions, and environmental restrictions control the vehicle sector. These rules may affect industrial businesses’ operations and strategies.
Large organizations like Jaguar Land Rover Automotive PLC have hierarchical structures. Multiple management levels have defined lines of power and communication channels. The Board of Directors oversees the organization and sets strategic goals (People | JLR Corporate Website, n.d.). The CEO oversees the executive management team, which comprises professionals in operations, finance, sales, marketing, and R&D. Product development, production, supply chain management, marketing, and sales are handled by departments and divisions under the executive management team (People | JLR Corporate Website, n.d.). These divisions collaborate to run the organization smoothly and accomplish its strategic objectives.
Jaguar Land Rover is a key participant in the car manufacturing oligopoly. A few major enterprises dominate oligopolies. Rover and other global automobile giants battle for market share and brand differentiation in a comped. Jaguar L is in a competitive market, and Rover’s oligopoly structure reflects its industry dominance (People | JLR Corporate Website, n.d.). The hierarchical structure helps the organization adapt to market dynamics, changing customer preferences, and industry trends via unambiguous decision-making and efficient coordination (People | JLR Corporate Website, n.d.). Jaguar Land Rover’s organizational structure allows it to compete and react to market needs despite the industry’s complexity and the necessity for significant expenditures in R&D, innovative production, and marketing.
STEEPLE Analysis of Jaguar Land Rover Automotive PLC
Social Factor Analysis:
Shifting Consumer Preferences: Over the last 5-10 years, consumer preferences in the automotive industry have undergone significant changes. There has been a growing demand for electric and hybrid vehicles, increased emphasis on sustainability, and a preference for more technologically advanced features and connectivity (Agrawal, 2023). Jaguar Land Rover has responded to these changes by introducing electric models and integrating advanced technologies into their vehicles.
Demographic Changes: Demographic shifts, such as urbanization and an aging population, have impacted the automotive industry (Agrawal, 2023). Urban dwellers often prioritize compact and efficient vehicles, while an aging population may seek more comfort and accessibility features. Jaguar Land Rover has adapted to these trends by offering a range of vehicles that cater to different customer needs, including compact SUVs and luxury sedans.
Technological Factor Analysis:
Electric Vehicle Technology: The emergence and advancement of electric vehicle (EV) technology have significantly impactedotive industry (Agrawal, 2023). Jaguar Land Rover has embraced this trend by introducing electric models like the Jaguar I-PACE, demonstrating its sustainability commitment and aligning with the growing demand for EVs.
Connectivity and Autonomous Driving: Technological advancements have enabled the integrvehicleon of connectivity features and autonomous driving capabilities in vehicle2023). Jaguar Land Rover has incorporated technologies like infotainment systems, smartphone connectivity, and advanced driver-assistance systems to enhance the driving experience and cater to evolving customer expectations.
Environmental Factor Analysis:
Sustainability and Emissions Regulations: Environmental concerns, including climate change and air pollution, have increased regulations and standards for vehicle emissions (Agrawal, 2023). Jaguar Land Rover has responded by investing in cleaner technologies, developing hybrid and electric vehicles, and improving the fuel efficiency of their models to comply with emissions standards and reduce their environmental impact.
Sustainable Manufacturing: Jaguar Land Rover has also focused on sustainability in its manufacturing processes. They have implemented measures to reduce waste, energy consumption, and carbon emissions in their production facilities (Agrawal, 2023). Additionally, they have incorporated recycled and sustainable materials in their vehicle designs.
Political Factor Analysis:
Government Incentives and Regulations: Governments worldwide have implemented various incentives and regulations to promote electric vehicle adoption and reduce carbon emissions (Agrawal, 2023). Jaguar Land Rover has benefited from government subsidies and grants to support the development and sales of electric vehicles, which have facilitated its entry into the electric vehicle market.
Legal Factor Analysis:
Intellectual Property Protection: Jaguar Land Rover, like other automotive manufacturers, invests heavily in research and development to innovate and protect its intellectual property (Agrawal, 2023). They rely on legal mechanisms such as patents, copyrights, and trademarks to safeguard their designs, technologies, and brand identity from infringement.
Ethical Factor Analysis:
Corporate Social Responsibility: Jaguar Land Rover has committed to corporate social responsibility by actively engaging in sustainable practices, promoting diversity and inclusion, and supporting local communities (Agrawal, 2023). They have initiatives to reduce their environmental impact, improve working conditions, and contribute to social causes, showcasing their ethical stance and concern for stakeholders beyond their immediate business operations.
Economic Factor Analysis
Microeconomic Factors Affecting Demand
Consumer Income: Consumer income changes can significantly impact Jaguar Land Rover vehicles. During economic growth and increased disposable income, consumers may have higher purchasing power, increasing demand for luxury vehicles. Conversely, during economic downturns or recessions, consumers may reduce their spending on non-essential items, affecting the demand for luxury vehicles.
Price of Substitutes: The availability and pricing of substitute goods, such as vehicles from other manufacturers or alternative modes of transportation, can influence the demand for Jaguar Land Rover vehicles. If the price of substitutes decreases or their quality improves, it may lead to a decrease in demand for Jaguar Land Rover products.
Consumer Preferences: Changing consumer preferences, influenced by fashion trends, environmental concerns, and technological advancements, can impact the demand for specific vehicle models or features. Jaguar Land Rover needs to continually assess and adapt its product offerings to align with evolving consumer preferences.
Demand and supply Curve Diagram:
Determinants of Supply and Factors Influencing Supply
Production Costs: The costs of labor, raw materials, and other inputs required for manufacturing vehicles directly impact the supply of Jaguar Land Rover products. Changes in these costs, such as wage rates or the price of key materials, can influence the company’s ability to supply goods and services.
Technological Advancements: Improvements in production processes and technologies can enhance the efficiency and productivity of Jaguar Land Rover’s manufacturing operations. Technological advancements can increase supply by reducing production costs, improving quality, and shortening production lead times.
Government Regulations: Compliance with various regulations, such as safety standards and emissions regulations, can impact the supply of Jaguar Land Rover vehicles. The company must invest in research and development, manufacturing processes, and modifications to meet regulatory requirements, which can affect supply levels.
Competitiveness of the UK Market and its Impact: The UK automotive market is highly competitive, with several domestic and international manufacturers vying for market share. The competitiveness of the market can have several impacts on the future of Jaguar Land Rover:
Pricing Pressure: Intense competition may lead to price competition and reduced profit margins. Jaguar Land Rover must carefully manage pricing strategies to remain competitive while maintaining profitability.
Innovation and Product Differentiation: Rover must continuously innovate and differentiate its products to stand out. This inv to stand out in a competitive market solves investing in research and development to introduce new technologies, improve vehicle performance, and offer unique features that appeal to customers.
Market Share and Expansion: Competitiveness affects Jaguar Land Rover’s ability to gain and maintain market share. The company must mostly assess market dynamics, consumer trends, and competitor strategies to position its market presence effectively. This may involve strategic decisions such as entering new market segments, exploring international markets, or developing partnerships and collaborations to enhance competitiveness.
Random Shocks and Fiscal Policy Impacts: Random shocks are unforeseen events that can significantly impact the UK government’s fiscal policy and subsequently affect the UK economy and Jaguar Land Rover’s business. Some examples of random shocks include:
Natural Disasters: Natural disasters such as floods or earthquakes can disrupt supply chains, damage infrastructure, and affect the economy. This can decrease automobile demand and impact Jaguar Land Rover’s sales and production.
Financial Crises: Economic downturns or crises can result in reduced consumer spending, tightened credit availability, and decreased business investment. These factors can adversely affect the demand for luxury vehicles like those produced by Jaguar Land Rover.
Policy Changes: Changes in government policies, tax regulations, or trade agreements can create uncertainties and impact the automotive industry. Alterations in fiscal policy, such as changes in tax rates or incentives for electric vehicles, can influence consumer behavior and ultimately impact Jaguar Land Rover’s sales and profitability.
Fiscal policy, which refers to the government’s use of taxation and spending to influence the economy, can have implications for Jaguar Land Rover and the overall business environment. For example:
Tax Incentives: The government’s fiscal policy may include tax incentives or subsidies to promote the adoption of electric vehicles. This can create opportunities for Jaguar Land Rover if they produce and market electric models.
Infrastructure Investments: Government spending on infrastructure development, such as road networks or charging stations for electric vehicles, can support the growth of the automotive industry and benefit Jaguar Land Rover by improving accessibility and customer convenience.
In conclusion, the analysis of Jaguar Land Rover Automotive PLC’s external business environment using the STEEPLE framework highlights the significant factors that have influenced the company over the past 5-10 years. Social factors, such as changing consumer preferences, and technological advancements, like electric vehicle technology, have shaped the company’s strategies and product offerings. Environmental concerns and regulations have driven Jaguar Land Rover’s sustainability initiatives. Political and legal factors, including government incentives and intellectual property protection, have impacted the company’s operations. Ethical considerations have driven Jaguar Land Rover’s commitment to corporate social responsibility. The microeconomic factors of income levels and consumer confidence affect the demand for the company’s vehicles, while production costs and technological advances influence the supply. The competitiveness of the UK market poses challenges and opportunities for Jaguar Land Rover. Understanding these factors is crucial for the company’s success and future growth in the dynamic automotive industry.
Agrawal, V. (2023, February 22). Jaguar Land Rover (JLR) SWOT & PESTLE Analysis | SWOT & PESTLE. SWOT & PESTLE.com. https://www.swotandpestle.com/jaguar-land-rover/
Hemzo, M.A., (2023). The Luxury Market. In Marketing Luxury Services: Concepts, Strategy, and Practice (pp. 21–43). Cham: Springer International Publishing. https://link.springer.com/chapter/10.1007/978-3-030-86073-8_2
People | JLR Corporate Website. (n.d.). Www.jaguarlandrover.com. https://www.jaguarlandrover.com/leadership
JAGUAR LAND ROVER REPORTS POSITIVE CASHFLOW AND PROFIT MARGIN IN THE FOURTH QUARTER | JLR Media Newsroom. (n.d.). Media.jaguarlandrover.com. https://media.jaguarlandrover.com/news/2022/05/jaguar-land-rover-reports-positive-cashflow-and-profit-margin-fourth-quarter