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The opportunities and threats for the German Future Mobility SMEs related to the “Digital Single Market” Initiative by the European Commission

Term Paper 2016 16 Pages

Business economics - Company formation, Business Plans

Summary

On June 2nd 2016, transport service provider Uber attracted a record US$3.5 billion investment from Saudi Arabia's Public Investment Fund and reached a valuation of US$62.5 billion. The platform business is now worth more than German car manufacturer BMW, proving the enormous potential of innovation in the sector of future mobility. Uber and the other world´s leading digital platform businesses have a combined market capitalization of US$4 trillion, but only 4% of this value is generated by European firms. Incumbent businesses in the mobility sectors around the world are fighting with how to prosper in an increasingly digital and platform-based business environment, but European enterprises appear to be hampered due to the absence of a large, accessible digital market to support their growth.

Although the EU reached a high degree of economic integration, it is especially difficult for innovative start-ups, in sectors with a need for high initial investments, to scale their business up in Europe. Many highly innovative start-ups in this sector, therefore, move to the U.S. during their growth phase. Juncker´s Commission set-up a Single Digital Market Strategy in 2015 providing significant changes for the digital economy in Europe.

This paper outlines the German start-up scene in the sector of future mobility and analyzes their barriers for internationalization. As a conclusion, opportunities and threats related to the DSM Initiative will be derived.

Details

Pages
16
Year
2016
File size
1.5 MB
Language
English
Catalog Number
v338402
Institution / College
European School of Business Reutlingen
Grade
1,3
Tags
german future mobility smes digital single market” initiative european commission

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Title: The opportunities and threats for the German Future Mobility SMEs related to the “Digital Single Market” Initiative by the European Commission