7/30/2019 Barnea on Electric Cars2
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The Jerusalem Post|Innovation Industry & Science|11/2012
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Hugh Investments areNeededThe growth o electric vehicles also
requiresan inrastructure, such as recharging stations.China and
Australia are speeding up plansto build charging acilities, and
Hawaii hasannounced plans to build as many as 100,000charging
stations for electric vehicles by2012 and a ew other US states are
alreadyfollowing. Investments in capabilities tomanuacture the
vehicles are needed as well.China and the United States have
commit-ted large investments to help companiesmanufacture batteries
and for governmentprograms to encourage car makers to produce
i about 10 percent o all cars on the roads werebattery-electric
or plug-in vehicles, running
solely on electric power. That would meansales of six million to
eight million electricvehicles a year by 2020, which would
changecar sectors dramatically.
Downstream Businesses Service ProvidersExecutives should
consider the develop-ment o the downstream business, too.
Onequestion is whether utilities, petrol stations,car companies or
other third parties ownthe recharging infrastructure and the
realestate it occupies? To meet the challenge o
sectors and have an impact on several others.Companies that act
decisively and in a timely
manner will probably enjoy signifcant gains;those that dont,
will not survive. However,timing is critical: Jumping in too early
or toolate will be costly. As the electric vehicle isbecoming a
reality, it will change the com-petitive landscape o many sectors
in the carmarket, and those attached to it.After years of
stagnation, the electric carhas shaked the the car market. To meet
thechallenge, all players involved in this markethave to strengthen
their strategic competitiveintelligence capabilities to be able to
assesswhere this market is heading. There is acritical need to
broaden perspectives and to
look orward to 10- 15 years henceorth. Inorder to survive, car
manuacturers, batterysuppliers and other suppliers o services
haveto make sure they do not miss the comingchanges. Implementing
this proposal willimprove signifcantly their
decision-makingprocess. Tactical intelligence may not be useulin
strategy development, one piece at a time,
but used in the aggregate, it can provide aninsightul picture
into where competitors andthe marketplace seem to be heading.
Thuscompetitors and market insights are criticalactors in successul
planning.
*Avner Barnea teaches Competitive Intelligence
(CI) in the MBA program o the NetanyaAcademic College and in the
ManagementSchool o the Western Galilee College, Israel.
He is a consultant in the feld o CompetitiveIntelligence and
Business Strategy in Israeland abroad. He held senior positions at
in theIsraeli Intelligence Community. The author hasan intensive
experience in the integration oCI systems into Israeli
corporations. He can bereached at: [email protected]
Electric vehicles would enter the mainstream if about
10 percent of all cars on the roads were battery-
electric or plug-in vehicles, running solely on electric
power. That would mean sales of six million to eight
million electric vehicles a year by 2020, which would
change car sectors dramatically.
larger numbers o more uel-efcient vehicles,including electric
ones.Of course, consumers may decline to buyelectric vehicles or
any number o reasons.The distance drivers can go beore recharg-ing,
or example, may undermine acceptance.However, I assume, on a more
undamentallevel, electric vehicles will go to mainstreamas a step
determined by government actionto make petrol more expensive; to
reducethe cost o producing, buying or operatingelectric vehicles;
or some other combinationo these approaches.
The Breakpoint to theMainstreamThere is a little point in
tryingto predict how many electricvehicles o one kind or otherwill
be on the road in anygiven year because so manyfactors are
unpredictable.Governments could ag-gressively promote the use
oelectric vehicles, or example, andthen lose tax revenues when
driversspend less money on petrol. Besides, it istoo early to say
how the rate o adoption byconsumers in dierent segments will growor
how costs will be optimized.Electric vehicles would enter the
mainstream
charging vehicles and o a smart charginginrastructure, utilities
must plan and investnow for the required technologies,
costs,inrastructure partners, and must structureaccurate business
models. They should alsothink about how the supply chain or
electricvehicles diers rom the present one.
ConclusionsIn my opinion, electric vehicles will becomea
reality. That will change the competitivelandscape of the
automo-tive, battery, and utilities
