Embed Size (px)
Citation preview
Hejin Ahn
Mimoun Cadosch
Kelsey Hilbrich
Edward Lando
Andy Maheshwari
Sydney Weber
Hallmarks of Disruptive Innovation
• Better Place disrupts the Electric Vehicle space with:
– Swappable-battery technology
• Increases driving range
• Separates car from battery ownership
– In-car software • Manages energy needs
• Better Place democratizes the electric car, which before was too expensive for most of the population by charging a lower TCO
Better Place’s Disruptive Business Model
• Better Place’s car is competitively priced– i.e. The cheapest of all EVs are as expensive as our premium model
• Gasoline Stations are replaced with Swap Stations
$13,678 $17,137
$11,543 $8,332
$0
$10,000
$20,000
$30,000
$40,000
$50,000
Average Car* Better Place Car
Tax Credit
Repairs
Maintenance
Insurance
Fuel
Financing
Taxes & Fees
Depreciation
Better Place affords 2% - 10% savings compared with popular 2012 vehicles
*Average of several popular vehicles in 2012
Better Place expected to sell 100,000 cars in Israel by 2016…
As of today, they’ve sold 750.
That’s 0.75%.
The Downside of Disruptive Innovation
Demand
The “Chicken and Egg” Problem
Infrastructure
SolutionsInternal• Stability
– Management consistency will increase internal & external stakeholder confidence
• Structure
– First, adopt product structure in Israel (e.g. IT, HR, etc)
– Ultimately, adopt a matrix structure with regional adaptations (Sales & Marketing, Infrastructure Set-Up)
External• Stimulating Demand
1. Periphery: Partnerships with automakers (Renault)
2. Periphery: Partnerships across other verticals (Zappos)
3. Core: Customers and NGOs advocate for tax and sales credits from government
• Subsidizing Infrastructure
– Reducing business model costs (integration, distribution of financial risk, etc.)
Why Globalize?
(1) Disrupt the Industry
(2) Derive Competitive Advantage
Switchable-BatteryElectric Car
Fixed Battery Electric Car
Plug-in Hybrid
Affordability ✓ ✗ ✗
Resale Value ✓ ✗ ✗
Emissions ✓ ✓ ✗
Range ✓ ✗ ✓
Running Costs ✓ ✓ ✓
Benefits of Globalization
1. First Mover’s Advantage: setting the standard for the Universal Plug
2. Partnerships with Globally-scaled Automakers: scale of brand name
We propose a
Three-Pronged Global Rollout Plan
How to Globalize?
Phase I: Israel & Denmark
Local Responsiveness
Glo
bal
Inte
grat
ion
PRODUCT MATRIX
INTERNATIONAL DIVISIONS AREA
External:1. Establish partnerships with Mazda and Hyundai2. Establish partnerships with corporations that lease cars to employees3. Reengage government support
Internal:
Phase II: Belgium & Netherlands
Cultural Administrative Geographic Economic
• Liberal democracies• Interest in environment
• Administratively efficient • Guarantee of Contract and law enforcement • Governmental involvement in environmental issues
• Relatively close to Denmark• Good base for rest of Europe
• Advanced economies with high GDP/Capita: early adopters for Electric Vehicles
Method of entry: Sole venture
Potential Future Challenges: (1) Gaining support of governments (2) Consumer demand
Phase III: Western Europe, US, Australia
Method of entry: Partnerships with other EV companies Ex] US entry: Better Place could partner with Tesla or Fisker
Potential Issues: (1) The size of these markets will require substantial
investments in infrastructure(2) Better Place has already tried to enter the United States
and Australia and therefore may suffer bias
Step One: Solve the “Chicken and Egg” problem
1. Stimulate Demand
2. Subsidize Infrastructure
Step Two: The Global Rollout Plan
1. Phase I: Israel and Denmark prove viability of the company
2. Phase II: Belgium and Netherlands are the next closest CAGE counterparts for expansion
3. Phase III: Western Europe, US, and Australia are potentially large sources of demand but require substantial infrastructure investment
Takeaways
Let’s make this world a
