Over the last few years, the worldwide electric vehicle (EV) fleet has increased significantly. As a consequence of this reason, Conventional Energy Vehicle (CEV) or traditional automobile manufacturers will be forced to reinvigorate their efforts to make electric vehicles. Competition is heating up and competitive asymmetry is growing. Since the companies in the same industry compete for the same market in a variety of different ways, this study is using strategic group theory to analyze their competitive dynamic. This research represents the first effort to explore the competitive dynamic of the automobile industry such as analyzing some event announcements which may have an impact on competitors’ stock performance between-group competition and examining how the market leader in both groups of firms (EV and CEV) within an industry varies in their competitive behaviors. The findings of this study show that the new product and innovation announcements have no impact on the stock performance between group in the automobile industry. It was also revealed in this study that the new products and innovations by the leading company of Electric Vehicle companies (Tesla) are factors that draw out a quick response from the leading company of Conventional Energy Vehicle companies (Toyota) since they feel threatened by facing increased competition.

Abstract 2
Tables and Figures
Figure 1. Global electric passenger car stock, 2010-2020 20
Table 1. Largest automakers by market capitalization 21
Table 2.1 Descriptive statistics for each company 27
Table 2.2 Descriptive statistics for the return EV and CEV 28
Table 2.3 Descriptive Statistics for the speedy response to an announcement 29
Table 2.4 Descriptive statistics for Response delay 31
Table 2.5 Descriptive statistics for Response delay between leading companies 32
Table 3. Reliability analysis for each company 32
Table 4. Conventional Energy Vehicle Companies’ Product Announcement 34
Table 5. Electric Vehicle companies’ Product Announcement 35
Table 6. Conventional Energy Vehicle Companies’ Innovation Announcement 36
Table 7. Electric Vehicle companies’ innovation announcement 36
Table 8. Response delay between leading companies 37
Figure 2. Response Delay (Time-length) between groups and firms 38
Table 9.1 Independent samples t-test for both groups 39
Table 9.2 Independent samples t-test for leading companies 40
Chapter I Introduction 6
Research Background 6
Research questions 8
Chapter II Literature Review and Hypothesis Development 10
Theoretical Framework 10
Strategic Group theory 10
AMC Framework 12
Hypothesis development 14
Type of announcement 14
New Product Announcement 15
Innovation (Research and Development) Announcement 16
Response delayed 17
Chapter III Methodology 20
Sample 20
Event study 22
Data source 23
Data analysis 23
Reliability analysis 25
Independent samples t-test 25
Estimation of abnormal return 25
Chapter IV Results 27
Descriptive Statistics 27
Reliability Analysis 32
Hypothesis Testing 33
Event Study Analysis 33
Independent samples t-test 38
Chapter V Conclusions 41
Discussion and Conclusions 41
Theoretical Implications 44
Managerial Implications 45
Limitation of the research 46
Future Research 46
References 48
Company’s event announcement 54
Tesla 54
Toyota 54
BYD 55
Volkswagen 56
Mercedes Benz 58
BMW 59
General Motors 61
Ford 62
Honda 62
Appendix 65

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