Electric Car Launch Plan

Electric Car Launch Plan

Executive Summary

The REVA electric car is an innovative concept that has been introduced in the Indian market because of the rising fuel price in the country. The idea behind its conception is to provide a car that is eco-friendly and a small car that would be suitable for growing problems in traffic. The company introduced its cars not only to target the Indian market but also cater to the growing demand for such cars in the international market. In order to understand the competitiveness of the company and its position, a series of analysis is carried out like Porter's Five Forces and SWOT as well as the Value Chain under the McKinsey Business System. Following this analysis, it can be seen that REVA is well placed to perform in a good way in the EV market. Even though there various challenges that the company could face, it can be overcome by adopting various strategies. The company's key strength is that it provides a high technology car, in fact way ahead of others in terms of technology. And the added point is that this high tech car is made possible at a lower cost. The cost compared to other manufacturers in the same industry is three to four times lower. The pull down factor for the company is that it doesn't offer a wide range of cars like 4-door cars or bigger models. It should be noted that in the future the range of cars offered should be broadened so as that it satisfies various kinds of customers. Despite all this, REVA cars are making headway into many countries and in the future it would turn out to be one of the major players in the eco-friendly car industry.

Introduction

In this assignment, the company taken into study is REVA Electric Car Company which is established in India. The company would be analyzed on its competitiveness by doing an industry analysis based on Porter's Five Forces; a situation analysis is done using SWOT and is followed up with McKinsey Business System to analyze the value chain in REVA. Based on this analysis, it can be understood whether the company is competitively placed to face other companies in the industry. The company strategy undertaken and also the ones to be taken is described so as to understand its future prospects of performance. The challenges to be faced ahead are listed down with recommendations to be considered in order to improve its standing.

Company Profile

REVA Electric Car Company (RECC) is based in Bangalore, India and part of the Maini Group. REVA is the first mass produced electric powered passenger car in India. It is the result of a joint venture between Maini Group and Amerigon Electric Vehicle Technologies (AEVT Inc.) of USA. The Maini Group holds 70 per cent equity while the rest is with AEVT.

REVA means 'new beginning' in Sanskrit. The new eco-friendly car was introduced in the Indian market in 2001 to symbolize a new beginning after four years ...