For example, automakers such as Toyota are investing in developing hydrogen fuel cell vehicles. Other alternative fuels are also beginning to gain ground in some markets. This development poses a major threat to fuel retailers, particularly those that operate numerous stations where fuel purchases account for a significant share of profits. By 2030, more than a third of all new vehicles sold will be fully or partly electric. As battery costs continue to decline, automotive OEMs are investing heavily in EVs. For example, the UK has mandated that, by 2040, all new cars and vans sold in the country should be capable of achieving zero greenhouse gas emissions, a requirement that will increase demand for battery electric, plug-in hybrid electric, or hydrogen-fueled vehicles. The first is the rollout of regulations aimed at limiting greenhouse gas emissions. Two forces are spurring the rise of electricity and other alternative fuels. ![]() (See Exhibit 1.) In all three areas, advances in digital technology-including big data and analytics, AI, the IoT, robotics and automation, and virtual and augmented reality-are driving and enabling change. The pace of disruption in the fuel business is breakneck, as alternative fuels grab share, The Reimagined Car, and consumers expect greater convenience, quality, and personalization. Those that boldly seize the opportunity will find themselves in a winning position. Instead, companies must fundamentally rethink their business and aggressively embrace innovation and new technology. Making modest changes or tweaks to the business will not suffice. To successfully adapt, fuel retailers must embrace a new mindset. Third, they need to develop new capabilities-including digital expertise and, in some cases, capabilities related to entirely new areas such as last-mile logistics or real estate. This process includes changing formats in some locations to meet customer demand, divesting locations that will not be profitable, and investing in assets that support the push into new products and services. ![]() Second, retailers need to transform their network of service stations and assets. This effort entails reinventing the overall customer journey and using digital tools to extend the customer relationship beyond occasional visits to the service station. First, they need to move from a vehicle-centric business model to a customer-centric one in order to capture new product and service opportunities. To prevent such a decline, fuel retailers need to take action in three areas. In a market environment in which electric vehicles (EVs), autonomous vehicles, and new mobility models take off rapidly, up to 80% of the fuel-retail network as currently constituted may be unprofitable in about 15 years. Although the environments differ from one another markedly, a significant portion of the fuel retail network in some markets could be unprofitable by 2035-even in the scenarios in which new mobility models are less disruptive and fossil fuel sales do not decline precipitously. Fuel retailers can use these market environment scenarios to analyze how their business might fare in the years ahead under different conditions and to position themselves to adapt over the short, medium, and long terms. ![]() To help companies understand what the future will look like and what they can do to adapt to it, BCG has conducted an in-depth study of the fuel retail industry, detailing four very different market environments that are likely to emerge around the world, each defined by changes in mobility and consumer lifestyles. Fuel retailers must develop a comprehensive response that adjusts the products and services they sell, adapts their network and business model, alters the layout of their service stations and convenience stores, and harnesses new digital tools. The ongoing shifts will alter the contours of competitive advantage in the industry and require a fundamental transformation of the standard business model. The impetus for these disruptions comes from an array of powerful new digital technologies-everything from artificial intelligence (AI) to robotics to the Internet of Things (IoT). ![]() Among the most powerful of these are the rise of alternative fuels (particularly electricity) for mobility, the emergence of new models in mobility, and the evolution of heightened consumer expectations around convenience and personalization.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |