EV Market Business Opportunity Analysis Report Term Paper

Overview

The electric vehicle (EV) market has received a considerable boost in recent years thanks in no small part to the rise of Tesla and its Model 3. However, while Tesla is basically a luxury EV manufacturer and most other automakers in the business are approaching the EV design with a tendency towards luxury over affordability, the idea behind this venture is to provide a cheap, high-quality EV to consumers that is practical, appealing, and safe. Considering that internal combustion engine (ICE) cars have reached a plateau in terms of how much further advanced they can get, and the EVs from Tesla, VW, Porsche and other firms are all going after the luxury consumer market, there is room for an innovate EV idea that will transform the entire industry just as the first car transformed the horse and buggy industry. This idea aims to be disruptive. The product will be called EVX and the design is for a collapsible, light-weight, portable EV with a detachable battery, small enough to fit in one’s briefcase or purse, that can be charged in one’s home, at one’s workplace or anywhere there is a regular outlet. The design will be patented and will appeal to consumers who have tired of the endless options in terms of luxury EVs and traditional ICE cars. The EVX will be a new form of transportation with extraordinarily low energy consumption costs: it will be a no frills, cost-cutting concept that will be available new to consumers for under 5000 pounds. As Trout and Rivkin (2006) point out, a producer must differentiate or die—and that is what this innovative idea aims to do.

Role of Entrepreneurs and Entrepreneurship on Innovation

Entrepreneurs and entrepreneurship play big roles in the delivery of business innovation. As Weinberger (2016) notes “entrepreneurs are creating jobs at more than twice the rate of established companies.” Enterpreneurs bring creative ideas and solutions to static or stagnant markets, inspiring consumers to try new products (Baron & Tang, 2011). However, there are mitigating factors: indeed, individual traits of the entrepreneur, “such as risk tolerance, entrepreneurial alertness, education and previous entrepreneurial experience, influence innovation in new ventures” (Fuentelsaz, Maicas, & Montero, 2018, p. 686). Entrepreneurs have to be smart about how they approach the marketplace. Betting too much on one single innovation could put an entire firm at risk—which is the problem currently facing Tesla, as Elon Musk, the CEO of Tesla has admitted to “betting the company” on the Model 3 (Crum, 2018)—a big risk considering that Tesla was essentially competing in a niche market and that the Model 3 would have to appeal to the mass market in order to generate the kind of returns the company would need. So far that has not happened. Thinking outside the box and embracing innovative leadership styles can assist in the delivery of business innovation.

Alternative approaches and tools to identify, select and manage emerging opportunities include thinking about what the need in the marketplace is, what factors will influence buyers’ decisions in the coming years, what the geopolitical threats are to the current way of life, and whether the upcoming generation is indeed ready for something new. Considering the many changes happening all over the planet, a truly affordable EV that foregoes the frills of the luxury brand models could be exactly what the market is looking for. Climate change worries, economic worries (particularly how a Brexit will impact the UK), and numerous other concerns are weighing on the minds of the upcoming generations and with car prices soaring it is time for a genuinely new concept in transportation to emerge.

SWOT Analysis as an Entrepreneur

My own strengths are that I can think outside the box. I have many creative ideas and solutions, and I am able to attract the right talent to help me bring my ideas to life. I know that talented people typically need only a direction, an idea to focus on, and that satisfies their need to apply their talents on…

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…Competitors

The EVX stacks up well with competitors: Tesla, MG, Audi, Mercedes, and Jaguar off the top five EVs in the UK and they are all luxury brands. Each of them offers numerous frills and luxury options, which is their primary strengths (Car, 2019). None of them offers what the EVX will offer, which is the truly inexpensive, no frills option. One cannot get an EV in the UK under 20k pounds and the EVX will be only a quarter of that, making it an unbelievable option for price-conscious consumers. Considering that a downturn, now expected, in the global economy is likely to turn all consumers price-conscious (Inman, 2019), competitors will be priced out of the market by the EVX and its patented design will prohibit them from producing a comparable product.

USP and Value Proposition

The USP is the EVX’s low cost, low price, removable battery and collapsible shell design. This differentiates it from competitors. It is something no competitor has attempted. It will appeal to price-conscious consumers and all green consumers. The personal relationship with customers will be based on the idea that the EVX was made for them—not for the wealthy class. The value proposition is that the EVX will truly be the next step in meeting the common everyman’s transportation needs.

Funding

Start-up capital will need to be raised from investors, who can be sold shares in the company. However, a better option will be crowdfunding, which will allow me to retain total control of the company and turn to donors for funding options. People want to take part in the next big innovative design, and many ordinary people are interested in funding creative endeavors like this one. So if they find an idea on a site like Kickstarter or GoFundMe that they believe in, they will donate and look forward to their contribution making a difference in the world. As Angerer, Brem, Kraus and Peter (2017) show, crowdfunding is a legitimate way to fund a start-up in today’s…