Plugging in the Consumer Case Analysis
“PLUGGING IN” THE CONSUMER: THE ADOPTION OF ELECTRICALLY POWERED VEHICLES IN THE US
INTRODUCTION
U.S. consumer interest in non-fossil fuel vehicles is relatively positive. There are several issues that American faced about fossil fuel such as pollution, dependency on oil imports, concerns of how long fossil fuel supply will be worn-out and especially fluctuation of foreign-oil prices and the more expensive cost of fuel for American household. Some actions have been taken both by the policy maker such as formed an air pollution control department to reduce smog (in the City of Los Angeles, CA) and passed the Clean Air Act in 1970. Those efforts already reduced the car emission by more than 95%. The car manufacturer also took action by developing more and more efficient internal combustion engine (ICE). There are several alternative technologies of more efficient vehicle such as, Electric Vehicle (EV), Diesel and Fuel Cells. However, a new standard of source of vehicles power has not been established yet. As the result car manufacturer tend to develop several new alternative power sources. Honda for example, while developing Hybrid Electric VehicleHEV (the Insight) it also develop a fuel cells vehicles (FCV). The purpose of this report is to analyze the business situation regarding the development and marketing of alternative-fuel vehicles in the US and proposing a new product introduction strategy for a hypothetical alternative-fuel car for the period 2012-16.
Page 1 of 8 Pages
SITUATION ANALYSIS
History Awareness in electric propulsion of vehicles is on the rise throughout global automobile industry. The revival of interest in electrification is attributed primarily to public concerns about air quality and the world oil crises. Furthermore, the combination of several air and energy regulation caused most major vehicle manufacturers to offer a limited number of electric vehicles. However, none of these vehicles was a commercial success.
NEEDS AND
INTRODUCTION
U.S. consumer interest in non-fossil fuel vehicles is relatively positive. There are several issues that American faced about fossil fuel such as pollution, dependency on oil imports, concerns of how long fossil fuel supply will be worn-out and especially fluctuation of foreign-oil prices and the more expensive cost of fuel for American household. Some actions have been taken both by the policy maker such as formed an air pollution control department to reduce smog (in the City of Los Angeles, CA) and passed the Clean Air Act in 1970. Those efforts already reduced the car emission by more than 95%. The car manufacturer also took action by developing more and more efficient internal combustion engine (ICE). There are several alternative technologies of more efficient vehicle such as, Electric Vehicle (EV), Diesel and Fuel Cells. However, a new standard of source of vehicles power has not been established yet. As the result car manufacturer tend to develop several new alternative power sources. Honda for example, while developing Hybrid Electric VehicleHEV (the Insight) it also develop a fuel cells vehicles (FCV). The purpose of this report is to analyze the business situation regarding the development and marketing of alternative-fuel vehicles in the US and proposing a new product introduction strategy for a hypothetical alternative-fuel car for the period 2012-16.
Page 1 of 8 Pages
SITUATION ANALYSIS
History Awareness in electric propulsion of vehicles is on the rise throughout global automobile industry. The revival of interest in electrification is attributed primarily to public concerns about air quality and the world oil crises. Furthermore, the combination of several air and energy regulation caused most major vehicle manufacturers to offer a limited number of electric vehicles. However, none of these vehicles was a commercial success.
NEEDS AND