p 4 From this statement it appears that prominent buyers are mostly less price

P 4 from this statement it appears that prominent

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incentives, fuel efficiency, and the cost to charge a battery.” (p. 4) From this statement, it appears that prominent buyers are mostly less price-sensitive, but controversially, they’re much more concerned about the batteries’ autonomy and charging time. Therefore, it arises that buyers play a vital role in this sector and their power remarkably influences e-car companies. Turning to the bargaining power of suppliers, the world growing demand for e-cars is generating new opportunities, also providing a consistent source of incomes. Indeed, for established automakers it’s somewhat achievable to focus on these prospects because few differences are in place among conventional and electrical cars; however, precisely those differences, as new engines, batteries and charging systems, plays a decisive role in the market. In recent years, vertical integration in the production of batteries has declined with growing outsourcing, yet automakers remain deeply involved in the design and production of batteries for their vehicles. Joint ventures, as well as partnerships, are allowing automobiles companies and battery manufactories a higher interdependence, permitting large-volume manufacture and robust relationships; the latter, however, could lead to the creation of dominant or even monopoly firms. Considering possible threats of new entrants, the increased capacity of the e-car industry is expected to draw latent investors and venture capital. Still, it’s also correct to assume that this market is likely to sell at modest volumes for a while.
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The majority of the prominent players of the traditional automobile sector are already into the industry, although most of them only with prototypes. Despite that, the players until now compose a low number. The main threat could arise from the Asian markets, especially China, where consumers seem likely to embrace the new trend. More actors could enter this segment in the future, principally due to ecological incentives and policies reforms. Still, new entrants aren’t considered a threat nowadays, not least because further growth and development are required. By the same token, also the threat of substitutes doesn’t represent a critical issue, several kinds of alternatives are already conceptualised, such as hydrogen, solar and biofuel cars, yet the sector is still executing a massive amount of research to make the technology profitable. To conclude, considering the rivalry among competitors, companies can partially rely on their R&D, most of the time open innovation is the answer for a reliable product, therefore cooperation is the cornerstone for success as well as the main obstacle. The electric car industry is mostly about technology, this led to an inevitable strategic alliance game. 3. Emerging business models in the car industry The design and evolution of the business models have matured growing attention, especially in the automotive industry. Companies aren’t willing anymore to remain faithful on those, by now antiquated, models based on preconceptions of another time.
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  • Fall '10
  • Deneffe

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