A Study on the Business Model and Strategy of An Integrated Service Provider in the Electric Vehicle Industry
Date Issued
2012
Date
2012
Author(s)
Chiu, Chun-Chieh
Abstract
According to researches, the global warming is resulted from mass carbon dioxide emission, 16~20% of which are produced by ground transportation vehicles that take up the highest percentage of fossil fuel consumption. In order to relieve global warming impacts that have brought severe harms to the environment and to minimize energy security risks that have increasingly received attentions under rational concerns of fossil oil soon-to-be drained up and increasing cost for crude oil exploration, issue of carbon emission reduction has drew a great attention from all the countries around the world. To cope with those issues, major leading automotive manufacturers have been developing variety of fuel-electric hybrid vehicle models and declared timeline to get new electrified vehicle on the road as their goals for future development.
However, wide adoption of pure battery-powered vehicle has run into a corner because of unaffordable battery cost, limited driving range and yet-to-be well established infrastructure for battery recharging or swap. In addition to continuous efforts devoted from governments, industries and academies for battery technology/performance improvement and services innovation provided to electric vehicle users, it is believed that, due to completely different design for energy supply from the traditional internal combustion engine vehicle, an innovative business model for electrified vehicle plays an essential role to assure successful development. This study is aiming at developing a feasible and innovative business model for an integrated service provider in the electric vehicle industry by reiterating current market situation as well as its possible future development for further investigation on constraints against the industry, then identifying niche market among current automotive application segments which electric vehicle can first ideally provide value to, and analyzing constraints that might not meet value proposition held by the customer which is identified as a targeted customer in the niche market.
Disruptive Innovation and Innovative Business Model Design introduced by Clayton Christensen and Mark Johnson respectively are two major concepts applied in this study. A niche market is identified and proved by applying concept of “job-to-be done” for potential market segment analysis as well as by performing a simulation with actual operating information. As a result, a business model with value creation to targeted customer is developed. In order to take up actual automotive market operations and possible competition into consideration, this study also applies concepts both of Value Network and Business Ecosystem for further assessment over possible constraints that might turn down decision made by the targeted customer for electric vehicle purchase as well as for an integrated service provider to develop required resources to cope with competition. By doing so, business model and key resource development strategy proposed by this study can prove to be more reasonable and feasible.
Finally, this study identifies that commercial fleet is the most suitable market segment to adopt electric vehicle as first mover, and proposes an innovative business model that includes introduction of concept of “Energy Supply and Management Integrated Service Provider” as an intermediary and a total solution to provide light commercial fleet operators with stable and reliable life through integrated energy supply and management services in the way of simple, convenient and lower total cost of ownership.
The proposed business model could be profitable if the proposed integrated service provider can provide light commercial fleet operators with battery leasing and charging station management as well as charge at total amount of electricity usage (Paid-by-kWh) as main revenue stream. In addition, this study also recommends the integrated service provider develop a Smart Charging Station Management System in order to successfully execute a keystone strategy for competition.
Subjects
Electric Vehicle
Disruptive Innovation
Business Model
Business Ecosystem
Type
thesis
File(s)![Thumbnail Image]()
Loading...
Name
ntu-101-P98746017-1.pdf
Size
23.32 KB
Format
Adobe PDF
Checksum
(MD5):ba32486688a47593fcbc6843045284ec