Better Place Case Study Solution
Performance evaluation of the Business model:
In the evaluation of any business model performance, some key factors are considered which shows that at what level your product is and is it ready to be launched or not. Similarly, the Better place had an outburst innovative idea. This involves prototyping.
Prototyping:
It is one of the first step to consider while launching a new product in the market. The electric cars proposed by Better place were high in quality, good speed. There is always a need of prototyping any product before its launch in the market. This helps in better understanding of your product in the market. A number of factors can be assumed to evaluate the performance of any product as mentioned in Exhibit 3.
Performance of the product:
This factor helps in determining the product’s performance if it is working well. So, before launch as any error is found, it can be corrected.
Time coverage:
It helps to check if the battery is running efficiently as expected by the manufacturer. It assist in the evaluation of the consumer’s response about the product.
Demand:
The evaluation of the product’s performance indicates the ratio of public demand according to which the product will then further be manufactured.
Without knowing the key factors outcome, it cannot be easily estimated that the product you are going to launch will surely earn you profit.
Hypothesis:
Every business starts with hypothesis as to evaluate the success of your business experiment.
- Electric car reduces the emission of greenhouse gases.
- The use of advance technology is beneficial for the people.
- The cost of the electric cars is cheaper than the gasoline one.
Experimental conditions:
To come up with better outcomes, it is important to select right condition or location for your experiment. The initial testing of the product before its launch should be done in place where you find more competition in products like the US, China, Europe. Selection of the right location for your product testing will better indicate you about the pros and cons of the product which will help you with protection of great loss after the product launch. Most importantly, make sure the product you are going to launch is highly demanded with perfect manufacturing as per customers need.
Shai Agassi Strategy:
The plan of electric car manufacturing was a nice strategy proposed by Shai Agassi. This strategy was expanded within a short span of time which did not let Agassi focus on the outcomes. The manufacturing of EVs more than the demand led Agassi to face a bad financial decline.
Before I order a larger number of electric cars, I will surely look at the response of the product. If it becomes famous enough, the demands get high and the manufacturers are ready to make my product then I will place order a limited quantity of product to be made. If the sale increases with time, then the manufacturing will also be increased.
In my opinion, the big reason behind the failure of better place is not spending enough time and plan the strategies to know the feedback of the product before its launch. These all factors were considered after the product had been launched and a large number of product had been manufactured. Remember, before you launch a product make sure to do its prototyping.
Appendix
Exhibit 1:
Exhibit 2
Exhibit 3:
Prototyping involves:
