ANALYSIS AND BUSINESS STRATERGY FOR ELECTRIC VEHICLE (EV)
1. INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY
ISSN: 2456-6683
Monthly Peer-Reviewed, Refereed, Indexed Research Journal
UGC approved Journal with Global Indexing
Impact Factor: 3.449
Publishes original research papers/articles, reviews, mini-reviews, case studies, synopsis,
research project and short research communications of all subjects/topics
Special Issue: 3
‘Sanjyot-2018’ National Seminar on
‘Emerging Innovations and Strategic Business Practices’
2nd
& 3rd
Feb, 2018
Benefits to publish the Paper in IJRCS
IJRCS is an Open-Access, peer reviewed, Indexed, Refereed International
Journal.
Author Research Guidelines & Support.
Platform to researchers and scholars of different field.
Reliable and Rapidly growing Publication with nominal publication fees.
Prestigious Editorials from different Institutes of the world.
Communication of authors to get the manuscript status time to time.
Quick and Speedy Review Process.
Full text of all articles in the form of PDF format.
Individual copy of “Certificate of Publication” to all Authors of Paper.
Indexing of paper in all major online journal databases like Google Scholar,
Academia, Scribd, Mendeley, and Internet Archive.
Open Access Journal Database for High visibility and promotion of your article
with keyword and abstract.
Provides ISSN to Conference / Seminar Proceeding papers.
RESEARCH CULTURE SOCIETY & PUBLICATION
Email: editorijrcs@gmail.com
Web Email: editor@ijrcs.com
Cont. No: +91 9033767725
WWW.IJRCS.ORG
2. 1
Emerging Innovations and Strategic
Business Practices
02nd
& 03rd
February, 2018
NATIONAL LEVEL SEMINAR
Organized By
Sanjivani Rural Education Society’s,
College Of Engineering, Dept. of MBA
Kopargaon, Dist- Ahmednagar, Maharashtra,
India, Pin 423603
www.sanjivanicoe.org.in
Sponsored By
Savitribai Phule Pune University,
Pune
Under Quality Improvement Program
www.unipune.ac.in
The Managing Editor:
Dr.Chirag M. Patel
( Research Culture Society – IJRCS )
Associate Editor
Dr. V. R. Malkar
HOD, MBA, Sanjivani College of Engineering.
3. INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY ISSN: 2456-6683 Special Issue - 3, Feb - 2018
UGC Approved Monthly, Peer-Reviewed, Refereed, Indexed Journal Impact Factor: 3.449 Publication Date: 04/02/2018
Available online on - www.ijrcs.org Page 152
‘Sanjyot-2018’ National Seminar on
Emerging Innovations and Strategic Business Practices
02nd
& 03rd
February, 2018 at Sanjivani College of Engineering,
Kopargaon, Dist - Ahmednagar, Maharashtra, India
ANALYSIS AND BUSINESS STRATERGY FOR ELECTRIC VEHICLE (EV)
1
Mr. Parag Metha, 2
Mr. Pushkar Metha, 3
Dr. Rajesh Pahurkar
1, 2
Research Scholar, 3
Assistant Professor
1, 2, 3 Department of Management Sciences, Savitribai Phule Pune University, (Formerly University of Pune)
Pune, Maharashtra, India
1. INTRODUCTION:
EV industry is evolving and lot of R&D is going to get major lead in this industry. Gaining popularity of EV is making
market more competitive and will be flooded with wide range of options from neighborhood car to high end SUV to
commercial vehicles to buses to trucks. Competitive position of India poses great advantage of doing business in India.
These are upward movement of Indians coupled with untapped rural market and fast developing urban market.
Government focus on Make in India program and aggressive planning and policy making toward EV is certainly big
opportunity to be tapped. Strategy is nothing but making sure we not only survive but prosper in VUCA environment and
every step we take is to build competitive advantage. At the same time, we should keep in mind that we cannot sustain
longer with single competitive advantage as it can be replicated by competitors one day or other, so need is to
continuously keep reviewing strategy and build multiple strategies.
The top most principal factor the company need is long term vision and clear roadmap to capitalize on EV rapid growth.
This can be set by asking basic questions such as who is our customer, who are competitors, how competitors will react to
our movement, where we should be in next 5 years, and many more.
The focus is to identify the assorted opportunities and threat that exist in the external environment and building the
strategy to tap these opportunities. Opportunities identified through PESTEL such as government opening tenders for EV
vehicle, 2030 vision of 100% EV, car sharing and rental mindset shift, below average number of car per 1000 person,
Abstract: Like any transformative innovative technology, electric vehicles create a variety of potent economic
development challenges and opportunities. The EV is poised to reshape industry and community and no doubt
it will be future of urban mobility. EV industry is evolving and lot of R&D is going to get major lead in this
industry. This analysis reports puts forward and determines the several factors for sustainable business strategy
for EV by doing External Environment Analysis using PESTEL and Porter’s five forces and using Factor
Analysis to map out opportunities and threat which effects company’s direction as well as to locate potential
sources of competitive advantage from a perspective that encompasses the internal, external, and dynamic fit of
strategy.
This report gives the assessment of the crucial factors and its strategic impact of the moves of competitors and
to maintain competitive advantage, understand the general drivers that create and sustain competitive
advantage using Porter’s Generic strategy, and to identify organizational barriers to change using Ansoff’s
Matrix and Value Chain Analysis. It also put forward analysis of market using segmentation, targeting and
positioning based on conducted survey which shows the factors that has been carefully identified has a positive
impact. Report also provides overview of distribution and suggests on omnichannel approach. This is aimed to
use as an assessment and redesign of steps of current strategy and develop plans for effective implementation
based on the factors identified to give firm a competitive advantage.
Maintaining a competitive advantage takes more than great timing or a single solution. Sustainable advantage
requires a well-designed and well-executed strategy.
Key words: Business Strategy, Electric vehicle, Competition, VUCA environment.
4. INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY ISSN: 2456-6683 Special Issue - 3, Feb - 2018
UGC Approved Monthly, Peer-Reviewed, Refereed, Indexed Journal Impact Factor: 3.449 Publication Date: 04/02/2018
Available online on - www.ijrcs.org Page 153
charging network set-up and many more. Threat identified are EV as non-stream product, poor battery efficiency and its
replacement, competition with global player etc. need to be converted to strength or risk to be mitigated. Early moves of
tapping these opportunities along with risk conversion will certainly make many SME’s to be in different ball game.
Forces are going to get stronger with increase in number of players entering the EV industry and will be analyzed by the
Porter’s Five Forces. Early start with high product differentiation and focusing on niche marketing will certainly have an
early movers advantage in many areas helps in gaining market share and dominate the market with continuous innovation.
Various competitive strategy has been formulated using Porter’s generic competitive strategy, blue ocean strategy, Ansoff
Matrix, Value chain analysis. This framework will help the SMEs to continuously keep innovating and frame their
product based market entry strategy.
Survey conducted using several factors shows that 78% respondent has shown interest in considering compact smart
electric neighborhood vehicle. This shows there is willing and acceptance in such of EV.
2. NEED OF STUDY:
To study significance and impact of various factors related to the EV and analysis the crucial strategic factor to
build a competitive advantage around strategic factor.
To study significance and impact on companies’ sustainable position in the VUCA environment.
It is beneficial to management of the company to understand market dynamics and have crystal clear picture
regarding important aspects like external environment, competitive advantage, market analysis, buying behavior,
segmentation, positioning, etc.
To study the company business, competition and identify areas of strength and weakness.
To presents detailed view about external environment, suggest competitive advantage to the management and how
to gain sustainable competitive advantage over competitors.
3. OBJECTIVES:
Objective of the study is to identify the crucial strategic factors to build a competitive advantage around strategic factors
and implement a sustainable competitive advantage in EV space through systematic developing business strategy in
VUCA environment.
Evaluate market opportunities & threats using PESTEL, Porter’s 5 forces & SWOT & identify strategic factors.
Evaluate the sustainability of competitive advantage through crucial strategic factor identified, Porter’s Generic
Strategy, Ansoff Matrix, and value chain analysis.
To identify segments, their targeting and positing.
This report defines a strategy formulation process that can be applied to prepare marketing or operations or financial or
another plan on daily, monthly, quarterly, yearly basis. It will help to gain a better understanding to SMEs of what should
be doing and how it fits into overall company strategy and departmental activates.
4. METHODOLOGY:
The information is collected through primary and secondary sources during the project. That information was utilized for
deciding on business strategy, calculating performance evaluation and based on that, interpretations were made. Group
common activities are divided into four buckets, to clarify how activities fit together to formulate business strategy.
1. Industry Analysis
1.1 Environment Scanning (macro, economic, political, social, cultural, technological)
Internal External
1.2 Competitive Environment
1.3 Strategic Factors Decision
2. Competitive Strategies Analysis
Creating competitive advantage
Competitive positioning Strategic alliances and
networks
Superior service and customer
relationships
Innovation Omni channel marketing
3. Market Analysis
Segmentation Positioning Targeting
5. INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY ISSN: 2456-6683 Special Issue - 3, Feb - 2018
UGC Approved Monthly, Peer-Reviewed, Refereed, Indexed Journal Impact Factor: 3.449 Publication Date: 04/02/2018
Available online on - www.ijrcs.org Page 154
Customer Acquisition
Sales process Campaign Planning Marketing Plan
4. Organizational Analysis (Self)
Financial Quality Measures Customer satisfaction
Marketing Core competency and USP Competitive advantage
Industry Analysis: Overview of industry by scanning internal and external environment such as macro, economic,
political, social, cultural and technological and deciding on strategic factors which impacts on the business performance.
Competitive Strategies Analysis: Creation of competitive advantage by positioning, strategic alliances, superior service,
innovation, customer relationship, omni channel marketing.
Market Analysis: High level conceptualization of penetration of market, go to market strategy, customer acquisitions.
Organizational Analysis: Through analysis of organization through its customer satisfaction, competitive advantage,
marketing, financials.
5. INDUSTRY ANALYSIS:
The foundation of any strategy is information and the analysis of the information. The information encompasses both the
internal environment of the organization and the external environment facing the organization. The systematic gathering
and analysis of information is a major task, but it will enable the organization to determine its direction with much more
precision and understanding, and it becomes the foundation supporting the marketing strategy. Trends, influences,
business conditions, resources, and capabilities must be explored for the present, past, and future.
1.1 EV INDUSTRY PROFILE
As per study conducted by Bloomberg New Energy Finance, Global demand for EVs is to surge to 54% of new car sales
by 2040. They foresee big inflection point for the global auto industry in the second half of the 2020s. Selling prices for
EVs will be comparable or lower than those for average ICE vehicles in almost all big markets by 2029. The mood the
world over seems to be electric. EVs will make up the majority of new car sales worldwide by 2040, & account for 33%
of all the light-duty vehicles on the road.
Though growing at a rapid rate, electric vehicles are still a niche rather than a mainstream product. Numerous challenges
stand in the way of a flourishing EV market. Many of these are the result of macroeconomic conditions which not only
have a profound effect on purchasing habits but also on the ability of governments to offer financial incentives and
support investment in the necessary infrastructure.
Following is details about EV industry
Parameter Current (2016) Future
Market Size 3% in 2016 as per Accenture 15% by 2021
Major Geographical
Distribution
China (Largest), US, Norway,
Netherlands, Sweden, France, UK,
US, China, Germany, France, Sweden,
UK, Canada, etc
Sales Volume 777497 as per Forbes 3 Mn by 2021 as per Bloomberg New
Energy Finance
5.5 Mn by 2025 as per Jato Dynamics
Growth rate CGAR of 19.2% in 2013 to 2019 CGAR of 37.63% by 2021 as per
Research and Markets
Global Electric car
stock
2 Mn vehicles Between 9 to 20 Mn by 2020
Between 40 to 70 Mn by 2070
Composition of EV 2 wheelers, low speed (LSEVs), and buses. Almost entire product line
Charging
Infrastructure
Continuously growing public and private.
Globally, public infrastructure was 72%
higher than last year.
Continuously growing public and
private. Many private players are
investing in providing charging network.
CAGR of 43.7% by 2021
The impact of autonomous driving is limited for the next 10 years, but ride hailing and car sharing services will have an
impact sooner. Autonomous vehicles will be primarily shared and will begin to replace existing human-driven shared and
6. INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY ISSN: 2456-6683 Special Issue - 3, Feb - 2018
UGC Approved Monthly, Peer-Reviewed, Refereed, Indexed Journal Impact Factor: 3.449 Publication Date: 04/02/2018
Available online on - www.ijrcs.org Page 155
hailed cars starting in 2030. This will start to impact vehicle sales and increase the average distance travelled per vehicle.
It is expecting that 80% of all autonomous vehicles in shared applications to be electric by 2040 due to lower operating
costs.
1.2 INDIA COMPETITIVE POSITION
Following table describes India Competitive Position.
Advantage Disadvantage
Raising domestic demand Focus should be on high quality manufacturing
Automakers can easy rearrange factories for EV
production
No track record of EV manufacturing, Battery
manufacturing, etc.
Highly Skilled and English speaking workforce Less government financing than countries like China
Focus is on R&D by major auto makers Rising cost of labor and material
Existing supply chain Intellectual property violation not taken much serious
Rural market untapped EV guild lines not in place
Incentives for Make in India Charging network not established
Guidelines to move full EV by 2040 Long hours of power cuts
Cost advantage driven exports
1.3 ENVIRONMENT SCANNING
Environment scanning is the process of continually acquiring information on events occurring outside the organization to
identify and interpret potential trends, opportunities and threats. It is important because environment is dynamic in nature,
therefore scanning is necessary to keep abreast of changes. It reveals elements or factor which constitute of threat and
opportunities to the overall objective of organization. Internal and external environment will be analyzed through
following framework.
PESTEL
Potter’s five forces
SWOT
TOWS
1.4 PESTEL
7. INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY ISSN: 2456-6683 Special Issue - 3, Feb - 2018
UGC Approved Monthly, Peer-Reviewed, Refereed, Indexed Journal Impact Factor: 3.449 Publication Date: 04/02/2018
Available online on - www.ijrcs.org Page 156
Suggestion and Recommendations: Factors like Make in India and increase in FDI inflow create huge opportunities for
growing EV industry and companies should focus on enchasing these by showcasing and levering technology which will
help those companies to get global footprint.
EV business performance will get benefited from decreasing battery cost, decreasing renewable energy cost and which in
turns translates into affordability of EV. Downward interest cycle will help company to funds its requirement with low
cost. GST will help in reducing cascading of tax effects and tax rate is also kept low around 12%. Downturn in Indian IT
and pressure on GDP indicates threat to EV sector. Low rate of cars per 1000 person is great opportunity to grab on
coupled with increase in spending power of Indians and large young population. Changing rural market is also area
which industry to keep watch on and rural specific products will provide substantial opportunity. However, changing
mindsets of Indians in terms of ownership of car and shift to rentals and rides is opening area for fleet owners. Offering
end to end solution to them can be seen as opportunity where high volume is involved. However, some inertia about
charging and its network which is currently treat to EV.
India is emerging as manufacturing and R&D automobile hub provides considerable opportunity. With governments
aggressive policy in favor of EV. As of now, there is no legal framework available around for EV which is painting
ambiguous picture.
1.5 POTTER’S FIVE FORCES
Suggestion and Recommendations: The competitive environment of an EV automobile industry is attractive as there is less
competition in the industry. However, forces are going to get stronger with increase in number of players entering the EV industry.
Early start with high product differentiation and focusing on niche marketing will certainly have an early movers advantage in many
areas helps in gaining market share and dominate the market with continuous innovation.
1.6 SWOT ANALYSIS
SWOT: that is, the Strengths of the organization, the Weaknesses of the organization, the Opportunities facing the
organization and the Threats facing the organization.
External Opportunities
Future of automobile is EV or some form of hybrid
Rapidly growing market for green vehicles at least for
next 2/3+ years
Big automobiles companies are in R&D phase to build
Strengths
Organization has to identify their Strength and its
organization Specific.
Weakness
8. INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY ISSN: 2456-6683 Special Issue - 3, Feb - 2018
UGC Approved Monthly, Peer-Reviewed, Refereed, Indexed Journal Impact Factor: 3.449 Publication Date: 04/02/2018
Available online on - www.ijrcs.org Page 157
their product
Capture supply chain through auto component suppliers
Electric vehicle manufacturer
Outsourced product R&D
Joint IP development with big automobiles
Selling IP to gain advantage
Expanding to new region/going global
Foreign collaboration/JV and strategic tie-ups
Govt. aggressive plans to move on EV
Till now Indian contribution to EV space is very less
Few available model (EV+Hybrid) & volume is also
low
Tightening emissions laws
Car sharing services/fleet owners/Technology Cab
companies
Rent and Rides outlook
Scope for Urban and Rural specific version of EV
Charging network setup
Auto rickshaw for city travel
Participate in Make in India for global visibility
Plan which can help to increase rate of cars per 1000
person
Organization has to identify their Weakness and its
organization Specific.
External Threats
Rapidly Changing technology
Unavailability of charging infrastructure
Not a mainstream product as of now
Driver less cars
Lack of necessities for EV in India
Limited efficient batteries and replacement
requirements after certain years
Global competitors entering market
Establish player (such as Mahindra) have vehicles
in market
1.7 STRATEGIC FACTORS
To identify strategic factors, we had detailed discussion with Mr. Satish Komaragiri, Co-Founder of Automotif Pvt. Ltd.
who have built prototype of off road EV vehicle targeted for airports, goal courts, megacities, etc. and have future plans
for going full product line EV company. According to him, below are various strategic factors which need to be watched
out for the EV industry. Below is the list of crucial strategic factors based Kepner Tregoe method to be consider in
forming the strategy according to us.
Factor Name Internal / external Priority Weight (1-5) Weighted Score
Purchase Price Internal 7 4 28
Charging Stations External 8 5 40
Policy Mechanism External 7 3 21
Battery Performance Internal 8 4 32
Fuel Charges External 5 2 10
Shift towards Green Technology External 6 3 18
Safety Internal 7 4 28
Readiness to switch External 8 4 32
Shift towards Rentals/Taxis External 5 3 15
Awareness Internal 6 3 18
Charging Time Internal 8 4 32
Hybrid Model Internal 6 4 24
Income External 7 4 28
Driving Range Internal 7 5 35
Consumer Education External 5 3 15
Total 100 376
As a part of the project, we will be carrying out, Factor analysis to reduce a large number of variables into fewer
numbers of strategic factors which we think every company/SME needs consideration.
9. INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY ISSN: 2456-6683 Special Issue - 3, Feb - 2018
UGC Approved Monthly, Peer-Reviewed, Refereed, Indexed Journal Impact Factor: 3.449 Publication Date: 04/02/2018
Available online on - www.ijrcs.org Page 158
1.8 PORTER’S GENERIC COMPETITIVE STRATEGIES
Porter suggests that there are three directions an organization can pursue for developing generic business strategies with
an assumption that an overall low-cost position. Your choice of which generic strategy to pursue underpins every other
strategic decision you make, so it's worth spending time to get it right.
Source of Competitive Advantage
CompetitiveScope
Cost Differentiation
Broad
Cost Leadership
Company should not focus on this to gain
competitive advantage because volume is EV
low and it can’t be sustained over period of
time.
Differentiation
Once volume of sale increases to a
substantial level, then company can focus on
this segment.
Narrow
Cost Focus
Initially company can use this strategy to get
foothold or penetrate in market then switch
fast to differentiation in focus.
Differentiation in focus
Company should focus on this through
product development having unique features
and targeting particular segments.
Suggestion and Recommendation: As there are not many players in industry and everyone is trying out new things,
company should develop product which have unique features such as replaceable battery, connected cars, smart phone
connectivity through various sensors, key less entry through smart phone or biometric, theft protection etc. At the same
time focus on narrow market through segmentation such as working professionals, housewives, Sr. citizens, rural market.
Here we are suggesting focus differentiation strategy. Company should not go for cost leadership strategy to gain
competitive advantage because as volume of demand of EV is low and it can’t be sustained over the period of time when
larger and global player enters into market. However, to get foothold or to penetrate to gain market share, company to
use Cost Focus strategy initially and then swift to differentiation in focus strategy. Here, company can implement
feedback and customer issues faced in Cost Focus phase. Continuously keep innovating to keep brand differentiated from
others. Here company need to focus on adding new products continuously at the same time improving existing products
and increasing product line width and depth with outside in approach. Once desired level of volume of sales is achieved
than Differentiation strategy need to applied. In differentiation, focus is on building brand value, pricing, omni channel
marketing, international expansion, multination manufacturing, JV, outsourced R&D, etc. things to be implemented as an
when opportunities are sensed and which in turn built competitive advantage.
1.9 ANSOFF GROWTH MATRIX
The purpose behind proposing the Ansoff Growth Matrix is to help businesses frame their product-based market entry
strategies. One of the main purposes of using Ansoff Growth Matrix by a firm is to mitigate its product positioning and
market entry-based risks. Four different types of strategies can be adopted by a firm based on the classification of the
products and the markets.
Product and Service
Markets
Existing New
New
Market development
- Developing pan India network of distributors
and service centers.
- Launch one by one product instead of all at a
time.
- Take special care of Culture, preferences while
launching products
Diversification
Do not focus as of now on this.
10. INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY ISSN: 2456-6683 Special Issue - 3, Feb - 2018
UGC Approved Monthly, Peer-Reviewed, Refereed, Indexed Journal Impact Factor: 3.449 Publication Date: 04/02/2018
Available online on - www.ijrcs.org Page 159
Existing
Market Penetration
- Product demonstration in malls, multiplex,
SEZ.
- Focus on marketing and develop marketing
plan to encourage more people to choose our
product.
- Introduce referral scheme
- Introduction finance option and discounts or
cashback or free accessories to attract customers
- Focus on marketing team and set targets to
achieve growth
Product Development
- Consider introduction of compact,
small cars into market
- Create value by registering patents
and IP creation.
Suggestion and Recommendation: To gain competitive advantage company should register and file patient for its various
new products. Company should focus on market penetration through focus marketing, referral scheme, various finance
options, etc. Once company able to get gain market share then company can think of moving to new market with top notch
existing products. Here focus should be developing strong distribution and service center network. Also, pan India
presence and dominance should be targeted. Care should be taken that not all products should be introduced once, rather
systemic plan should be prepared considering culture and preference.
2. MARKET ANALYSIS:
In this topic, we will talk about go to market strategy, customer acquisitions, STP.
2.1 SEGMENTATION FROM SURVE
Following is survey analysis for performing segmentation.
Company to focus on delivering ease and convenient charging, safety while driving, Environment friendly and low
maintenance cost which respondent are looking to switch to smart neighborhood vehicle. R&D to focus on solving
existing problems such as charging hassles.
Almost 64% of the respondent travel 26km to 75km and R&D to focus on increasing distance travel per charge. Company
need to work on establishing charging network so that customers can charge batteries or replace batteries. Feature such
as 25km alert and distance travel with current charging will be useful indicators for users to plan their travel.
Company should focus on customer requirement for building solution and need to come up with innovative solution which
can cater all the combination.
11. INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY ISSN: 2456-6683 Special Issue - 3, Feb - 2018
UGC Approved Monthly, Peer-Reviewed, Refereed, Indexed Journal Impact Factor: 3.449 Publication Date: 04/02/2018
Available online on - www.ijrcs.org Page 160
Here we have received mix responses for each price segment. Further analysis need to be made before taking any
decisions. Company need to map these respondents to price, features expected and other parameters to understand their
readiness to buy. Also, understanding of respondent who are not willing to go for it may also provide some clues to while
product development. In longer run, it should consider upgrade options as well ranging from basic to advance.
Overall from survey it has analyzed that 78% responded where like to consider compact smart electric neighborhood
vehicle to buy. This shows there is willing and acceptance in such kind of vehicle.
2.2 CLUSTER ANALYSIS FOR SEGMENTATION
Principal component analysis is done to get the segmentation on survey data.
Variance Matrix by principal components (3 components):
Row scaling method used is unit variance scaling and PCA Method is SVD with imputation.
PC1 PC2 PC3
Individual 0.95 0.05 0.00
Cumulative 0.95 1.00 1.00
Principal components (3 data points in rows, 3 components in columns):
PC1 PC2 PC3
Consideration to Shift -6.05 0.04 -0.00
KM travel 2.90 -1.25 -0.00
Price 3.15 1.22 0.00
Heat Map:
Columns are centered; unit variance scaling is applied to columns. Both rows and columns are clustered using correlation
distance and average linkage. 3 rows, 29 columns.
Suggestion and Recommendation: Survey caters to psychographic and behavior segmentation and following are
variables.
Psychographic: distance travel, number of seats, bike or car steering, 3/4 wheels, price of car.
12. INTERNATIONAL JOURNAL OF RESEARCH CULTURE SOCIETY ISSN: 2456-6683 Special Issue - 3, Feb - 2018
UGC Approved Monthly, Peer-Reviewed, Refereed, Indexed Journal Impact Factor: 3.449 Publication Date: 04/02/2018
Available online on - www.ijrcs.org Page 161
Behavior: Benefits (such as Easing of charging, environment friendly, etc), open or closed car, Readiness stage.
From PCA analysis and heat map analysis, segments can be formed by using variables such as consideration to shift, KM
travel and Price. From this survey, it conveys that, we need to consider different versions of vehicle to cater various
segments of customer who are price sensitive and wanted various features. Company should plan positioning such that it
should have basic version and variants with additional features or basic version and various required features can be
plugin in on user demand. However, this survey study need to combine with demographics geographic segmentation to get
effective segments.
2.3 COMPETITIVE POSITIONING
Competitive positioning is about defining how we will differentiate our offering and create value for our market. It’s
about carving out a spot in the competitive landscape.
A good positioning strategy is influenced by:
Market profile: Size, competitors, stage of growth
Customer segments or personas: Groups of prospects with similar wants and needs
Competitive analysis: Analysis competitive strength with Porter’s Generic Competitive Strategies, Blue Ocean
Strategy, Value Chain Analysis, Ansoff Matrix, USP Analysis, Core Competencies Analysis, etc.
Method of delivering value: How you deliver value to your market at the highest level.
Suggestion and Recommendation: EV market is increasing faster than anyone thought off. Existing product targeting
should be for niche area of golf course, airports, SEZ and Infra city, big universities, amusement parks, big company
campuses, etc. Company need to target urban and rural population with different set of products. For urban, company
can target city travelers such as working professional, housewife’s, Sr. citizen, college going students. For rural,
company may target small shop merchants, farmers who requirement is travel with some heavy weight luggage with them.
Company can target B2B, B2C urban, B2C rural to get competitive advantage over competitors continuously add value to
product and increase product line using focus differentiation strategy of Porter Generic Strategy. Value chain analysis
need to understand properly and implemented to get cost down without compromising on quality or features. Same can be
used to understand areas of differentiation and need to be worked out to get sustainable advantage. Company need to
work on Blue ocean and implement them to differentiate itself. Omni channel marketing and effective distribution coupled
with quality service is key area to focus to give unique experience to the end user.
REFERENCES
1. http://www.iedconline.org/clientuploads/Downloads/edrp/IEDC_Electric_Vehicle_Industry.pdf
2. http://teslaresearchproject.weebly.com/internal-external-analysis.html
3. https://www.strategy-business.com/article/10102?gko=f738b
4. https://pdfs.semanticscholar.org/6ec4/e272e2342e5528d5aff414050128709b31fe.pdf