The Electronic Vehicle Battery Industry. The need for Standardization to lessen the impact of a closed Buyers’ market


Essay, 2016

9 Pages, Grade: 1,0


Excerpt

Content

Summary of Analysis

Sociological Variables

Technological Variables

Environmental Variables

Economic Variables

Political Variables

Barriers to Entry

Bargaining Power of Buyers

Bargaining Power of Suppliers

Industry Competitors

Threat of Substitute Products

Conclusion

Forecast and/or Implications

Works Cited

The Electronic Vehicle Battery Industry: The need for Standardization to lessen the impact of a closed Buyers’ market

BUS520.31 – Competitive Intelligence

2016-06-12

Summary of Analysis

The electric vehicle battery is directly codependent to the electric vehicle industry. Both industries suffer from the high switching cost for batteries. Economies of scale and high capital investments have established a competitive and rather closed market. Within this market the buyers’ power is omnipresent. The automobile makers are following a backward vertical integration strategy to increase the benefit within the supply and development chain. At the same time traditional combustion engines still threaten electrification due to customer distrust and again the high switching costs.

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Sociological Variables

Consumers are seeking alternatives to traditional transportation. The public awareness of climate change and especially CO2 Emission increased over the last decade (Accenture, 2014; International Economic Development Council, 2013). Customers are looking for “green” and alternative ways to lessen their imprint upon the earth. At the same time the general awareness and acceptance of new technological advances was accepted within public opinion. eSolutions like electronic payment, but also eMobility and the Internet of Things (IoT) is accepted as a present reality.

The electric vehicle battery industry, directly benefits from the sociological phenomenon of IoT and its implications through the growing acceptance of its own technology.

Technological Variables

Rapid technological improvements open up new business models and more efficient usage of current technologies. The technological advancement prompted the development of eSolutions. eMobility derived from this phenomenon (Accenture, 2014). It also opened up new and emerging revenue streams. Additionally, the newly developed technologies allow for a more efficient usage of resources and synergy effect throughout industries (ibid).

The electric vehicle battery industry is able to profit directly from these technological advancements as they are the cornerstone for long-lived and capable battery development.

Environmental Variables

Growing awareness prompts need for “green” solutions. Within the electrification value chain partners and collaborators are encouraged to implement green and alternative solutions that lessen the impact on nature and society (Accenture, 2014). Thus, electric vehicle battery companies can directly benefit from the emergent need for more sustainable solutions..

Economic Variables

Subsidies and emergent business models benefit economic development. The emergent technologies prompt business solutions like eMobility solutions (Accenture, 2014). These directly advertise the benefits of “green” or alternative solution to transportation. This emergent market is still in development (Accenture, 2014) and holds enormous growth potential (European Commission, 2015). However the current infrastructure does not accommodate a level of service that is needed to satisfy consumer demand (ibid). Governments all across the globe are therefore subsidizing electric vehicle solutions and development. Germany for example, plans a subsidization program of $1.4 Billion as incentive for electric cars in 2016 (Nichlos, 2016).

The electric vehicle battery market is codependent to the electric vehicle market. The projected growth and investments are directly beneficial for its own development.

Political Variables

Governments actively support development and sale of electric vehicles. Governments are showing a substantial interest in the development and establishing of an electric vehicle market (e.g. European Commission, 2015). While the “subsidies landscape” is rather diverse and different throughout the world (Accenture, 2014) government support is growing (Nichlos, 2016).

The growing governmental support is beneficial for the electric vehicle battery industry.

[...]

Excerpt out of 9 pages

Details

Title
The Electronic Vehicle Battery Industry. The need for Standardization to lessen the impact of a closed Buyers’ market
Course
Competitive Intelligence
Grade
1,0
Author
Year
2016
Pages
9
Catalog Number
V341760
ISBN (eBook)
9783668319660
File size
551 KB
Language
English
Tags
Industry Analysis, Wettbewerb, Electric Vehicle, Elektro-Auto, Standardisierung, standardization, Competitive Intelligence
Quote paper
Jan Alexander Linxweiler (Author), 2016, The Electronic Vehicle Battery Industry. The need for Standardization to lessen the impact of a closed Buyers’ market, Munich, GRIN Verlag, https://www.grin.com/document/341760

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