Instant Oil Change Strategic Evolution: How Can Valvoline Balance Maintaining Growth and Profitability with Market Adaptation?

Author
Neil Tocher
Topic
Human Resources & Organizational Behavior
Strategy & General Management
Length
6 pages
Keywords
strategic management
organizational change
automotive market adaptation
profitability growth
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

This decision-based case discusses how Valvoline should adapt its strategy to the Instant Oil Change division in an evolving automotive landscape. The instant oil change segment was highly profitable, had been growing rapidly, and seemed to be better positioned than its price-focused competitors. However, significant market volatility lurked on the horizon. The electric vehicle transition threatened to upend a business built on oil changes required by internal combustion cars, connected car technology’s emergence threatened Valvoline’s ability to provide maintenance to such cars, and new mobile service models could soon enable the business to go to the customer instead of the customer coming to the store which could upend traditional store-centric services. As such, the firm needed to identify how to best serve a changing market without sacrificing its current business servicing traditional, internal combustion cars.

Learning Outcomes

After completing this assignment, students will be able to:

1. Identify and discuss factors that may impede strategic adaptation in firms facing impending market change.

2. Describe the influence market forces have on customer likelihood to adopt emerging technologies.

3. Explain why firms’ core competencies and successful business strategies may hinder their abilities to adapt to changing markets.

4. Articulate how companies and employees resist change and identify actions firms can take to neutralize change resistance.