Business Model – Car Charging Stations And Solutions Case Study Solution
Target Market:
The target market for the business will be California and New York as the demand and usage of electric cars and bikes in these cities was the highest considering, both the states had a market share of 5.02% and 1.03% in the year 2018 in terms of total electrical vehicle market share. (EV adoption, 2020)
Competitor analysis:
The major players in the electric vehicle charging market include ABB Ltd, Robert Bosch GMBH, delta electronics, Delphi Automotive LLP, Siemens AG and Tesla (allied market research, 2020). These competitors provide charging solutions and have charging stations at various locations in the USA. The strengths of the competitors in the car charging market include a strong brand image, huge geographical outreach and a wide range of charging solutions.
The strong brand image of these competitors has proved to be a disadvantage for the entrepreneur as the customers will have less awareness of the newly established business. However, the weaknesses of the competitors in the relevant market include high prices for the services and lack of provision of complementary services which the proposed business will offer. These weaknesses in the relevant market have provided a competitive advantage to the proposed business.
Customer purchase:
The core competitive advantage of the proposed business that has enabled the customers to purchase and avail the services of the proposed business includes provision of fast-charging electric vehicle charging station along with provision of home charging facilities, free parking houses at the stations, provision of other complementary services that includes free fast charging for limited time at pilot locations, free installation of swapped battery in the owner’s cars, provision of lunch, coffee and internet connection while the customers wait for car’s battery to get fully charged. These services will enable the proposed business to attract and retain customers. In addition, the proposed business will provide services and charging solutions at market competitive rates i.e. with only 2% markup as compared to its competitors. Furthermore, the organization will offer multiple payment options to its customers in order to differentiate itself from its customers.
Key Partners:
Technology Partners and Suppliers:
It is considered that the proposed business will need to form a partnership with EV Connect, a leading provider for electric charging solutions to get assistance for the installation and management of the charging stations. (evconnect, 2020)
Financial Resource Providers:
In order to fund the establishment and execution of the proposed business, the loan will be borrowed through the Electric Vehicle Charging Station (EVCS) Financing Program. The program offers rebates to electric charging vehicle stations in California which is the target market for the business. On the other hand, the partnership will need to be formed with renowned car manufacturers that include Ford, this will ensure that significant finance is raised and the organization’s electric car sales are increased as charging solutions will be provided. Moreover, partnership with ford will ensure that the organization fulfills its corporate social responsibility.
Marketing Channels and customer Relationship:
The following market channels will be used to engage with customers and increase brand awareness among the customers:
- Send Introductory letters to electric vehicle and bikes owners in the target markets
- Increasing brand awareness by advertising the business using national dailies, local TV and local radio station
- Using social media platforms as an advertising channel
- Automated services such as search engine optimization or association with social media platforms which will make suggestions to the customers
- Excellent customer service will be provided in addition to complimentary services such as free tutorials to assist in-home charging Local campaigns
- Positioning flex banners with the business’s accreditations which includes a partnership with Ford and EV connect at the target markets.
- Customer interaction will be high as personal assistance will be provided while installation or plug-in chargers at homes
Sales Projection:
The major revenue streams will include sales from home charging facilities, opportunity charging stations, fast-charging station and battery swaps. The public charging facilities will include opportunity charging stations, which will allow the car to get full charges in a span of seven to eight hours. The fast-charging station will recharge the batteries within 20 minutes whereas, Battery swaps for cars will be provided, in case the owners are in a rush and cannot stay for a longer time. It is projected that the organization will generate significant revenues in the next four years which are shown in Appendix 1 of the Business Plan.
The sales have been projected using various assumptions in relation to the number of user visits and selling prices. It is assumed that the fast charging facilities will be provided at a price of $8 which is based on the selling price estimated in the World Electric Vehicle Journal Vol. 6 (Markkula, 2013). In addition, it is assumed that the battery swapping services will be provided at a cost of $6.25 and the home charging facility will be provided at acost of $8.4 which is the price offered by Pod Point, a car charging solution provider company. (pod-point, 2020)
Cost Projections:
It is estimated that the proposed business will need an initial investment of $636,680 which is based on various assumptions in relation to the cost projections which are shown in Appendix 2 of the Business Plan.................................
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