Driving the future

: the strategic reinvention of the DTM Group amidst market changes in the automotive industry. From core rigidities to dynamic capabilities

Abstract

This dissertation examines the strategic adaptation and market evolution of the DTM Group, a leading drivetrain manufacturer, amidst the dynamic changes and crises they experienced in the automotive industry. Initially, DTM exhibited core rigidities as it struggled to transition from its reliance on internal combustion engine components to embrace electric vehicle technology. These rigidities hindered the company's ability to pivot and adapt to rapidly changing market demands. It was only when the market changes severely impacted DTM's profitability that the company recognised the need for strategic reinvention. Using a comprehensive case study approach, this research examines DTM's strategic initiatives such as engineering transformation, cost reduction through outsourcing, strategic localisation and customer base diversification. The findings reveal how DTM has successfully leveraged its dynamic capabilities to innovate and remain competitive during market disruption. Key challenges and constraints are discussed, highlighting the need for continuous adaptation in the face of technological advances and market shifts. By transforming its rigid structures into dynamic capabilities, DTM has not only survived but also positioned itself as a forward-looking player in the EV market. The study provides valuable insights for strategic management in rapidly evolving industries, highlighting the critical role of dynamic capabilities in overcoming core rigidities and sustaining competitive advantage.

Date of Award	26 Jun 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Cardeal (Supervisor)