Question

In: Operations Management

A small start up company is planning to launch their first new electric scooter model. Explain...

A small start up company is planning to launch their first new electric scooter model. Explain the implications of industry structure & performance for the industry/market as a whole.

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Expert Solution

Electric vehicles market is picking up globally. Specially electric cars and scooters. With the new enviornmental norms of emissions electric vehicles are gaining demand slowly. Autosegment market comprises of Petrol, Diesel, Hybrid and new segment of Electric vehicles.

Even though electric vehicle segment is a relatively new the demand for this segement is slowly increasing with awareness. The research and development in electric vehicle segment is also improving with technology and better efficiency designs, batteries. Electric vehicles which were initially launched did not get much response. due to lack of efficiencies, no infrastructure available for charging, charging stations not competible.

Market as a whole was able to shift from petrol/diesel to Hybrid vehicles in a major way. How ever electric scooters are slowly picking up the market share. With pricing getting more and more economical and better efficient designs people are preferring to use electric scooters. Also metro cities with traffic jams there is a greater demand for electric scooters to save on fuel consumption. Governments are also improving infrastructure for electric vehicle by making dedicated parking bays, electric charging points. As a whole the demans for electric scooters will improve slowly and steadily.


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