Zap and Electric Vehicle

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  • Topic: Electric vehicles, Electric vehicle, Electric car
  • Pages : 7 (2306 words )
  • Download(s) : 256
  • Published : June 8, 2011
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1.The competition to develop and market electric vehicles has increased during the last year and is expected to continue to increase. The electric bicycle industry has four major manufacturers and a large group of small companies. The major manufacturers are Honda, Suzuki, Sanyo and Yamaha. They mainly sell products to Japan and Europe. The other group of manufacturers is much smaller in size and sales volume. These manufacturers have products they sell into the U.S., European and Asian markets. Porter's five-forces model is a powerful tool for systematically diagnosing the principal competitive pressures in a market and assessing how strong and important each one is. The electric vehicle industry is a definite for applying this technique. These are my observations about the five forces affecting the EV industry: • The rivalry among competing sellers in the EV industry is.....

Zap Case Study
Summary: Provides a case study of the Zap and the Electric Vehicle Industry. Describes how competition to develop and market electric vehicles has increased during the last year and is expected to continue to increase. Provides marketing suggestions.

1.The competition to develop and market electric vehicles has increased during the last year and is expected to continue to increase. The electric bicycle industry has four major manufacturers and a large group of small companies. The major manufacturers are Honda, Suzuki, Sanyo and Yamaha. They mainly sell products to Japan and Europe. The other group of manufacturers is much smaller in size and sales volume. These manufacturers have products they sell into the U.S., European and Asian markets. Porter's five-forces model is a powerful tool for systematically diagnosing the principal competitive pressures in a market and assessing how strong and important each one is. The electric vehicle industry is a definite for applying this technique. These are my observations about the five forces affecting the EV industry: • The rivalry among competing sellers in the EV industry is high, with new businesses popping up every year. • The barriers to entry for new competitors at this time is low, which is why rivalry is becoming stronger among companies with new companies forming left and right. • The threat of substitute products is also high because new technology combined with new and innovative companies has created many product options in the EV industry. • The bargaining power of suppliers is the EV industry is low because so many companies exist that create the parts EV markers are looking for. This gives companies more options at finding the cheapest prices for the parts they need. • Finally, the bargaining power of customers is high, because there are so many companies out there offering electric vehicles. This allows consumers to pick and choose whom they want to deal with, thus lowering the bargaining power of the business itself. The major factors causing the EV industry's competitive structure to change is product innovation and regulatory influences. With product innovation, the key to success is capturing the imagination of the customers. Also, with the rising energy costs facing the world today, governments might require permits or licenses on the EV industry thus dampening the attractiveness of the market. Before the energy problem, recharging an EV was cost-efficient, but with this rise in energy prices, a potential alteration of consumer perception about the cost of owning an EV might occur. In my opinion, these driving forces only dampen the industry thus allowing only early-movers to be the most likely to survive the competition of this industry. Is the industry attraction? Basing my decision on Porter's five-forces model, I would have to say that the EV industry in unattractive. This is because anyone can enter into the industry thus creating too much competition which will drive prices down. This driving of prices downward will cause new...
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