No Essay Example | Topics and Well Written Essays - 3000 words

No - Essay Example This led to the development of electric vehicles from the middle of the 19th century as well as those that were propelled by internal combustion engines. This opened up business opportunities for inventors of battery and motor technology as well as those who traded in storage of electricity. However, internal combustion technology managed to get an early mass adoption after the assembly line was invented by Henry Ford (Etzion & Struben 2011, p. 3). In the case of Better Place, the timing was convenient as it was launched when most governments were concerned with the emission of greenhouse gases by vehicles that ran on the internal combustion technology. From the point of view of the five forces analysis developed by Porter, also known as P5F, it is evident that the advancement of electric vehicles by Better Place had the advantages associated with new market entrants. For example, one of its geographical targets was Hawaii, which imported 90 percent of its oil in order to meet its ga soline requirements. Further, the state had the highest prices for gasoline in the entire nation. Therefore, revival of the electric vehicle, whose production had temporarily stopped in the 1930s, was a direct threat to the internal combustion technology that had raised concerns among environmentalists. Suppliers in the industry also had the advantage of a high bargaining power because of their small number as compared to suppliers of vehicles that ran on internal combustion engines. The electric vehicles created a situation of threat of substitutes for the internal combustion vehicles since they served the same purpose but at a cheaper cost of maintenance and in more environmental-friendly ways. However, with the key challenge facing electric vehicles being the low mileage provided by the battery as well as the slow development of charging points, it was not clear how quickly the market’s demand side would develop. Further, according to a report prepared by Ernest and Young, consumers, especially in the United States, were not readily willing to consider electric vehicles as practical options to internal combustion (Etzion & Struben 2011, p. 14). This placed a limit on the number of units that would be released into the market at any given time. In light of this, the United State’s vehicle manufacturer, General Motors (GM), withdrew from the production of electric vehicles, resulting in a major setback for advocates of the technology. However, at the same time, this also paved way for many other smaller companies to venture into industry. This consequently reduced their bargaining power as suppliers, forcing them to shift focus from luxury vehicles to more affordable ones. Scenario Planning The business scenario at Better Place was planned to address the concept of making the world a better place by the year 2020. The founder’s vision was based on the idea of creating a link between customers, battery companies and vehicle companies in a way that would facilitate and maintain the widespread adoption of electric vehicles (Etzion & Struben 2011, p. 4). The link was aimed at overcoming limited mobility, which was the most significant downside of electric vehicles. This planning went beyond what had limited most companies in the industry. The companies believed that adoption of elect