Entrepreneurship and Business Development: A Case Study on Ebicycles

This report is a case study on Ebicycles and covers topics such as rationale for business launch, market and industry review, competitor analysis, STP analysis, marketing mix, market growth strategy, finance options, and risk analysis.

Entrepreneurship and business
development

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Rationale for business launch with its mission and vision..........................................................3
Market and industry review with the understanding of the micro/micro analysis of the external
environment.................................................................................................................................3
Competitor’s analysis...................................................................................................................5
STP analysis.................................................................................................................................6
Marketing mix .............................................................................................................................7
Market growth strategy................................................................................................................8
Finance options............................................................................................................................9
Risk analysis................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship is the ability to establish, run or organize a business enterprise which is
essential for enhancing their performance in the business environment. Development of new
products or services which provide value to the customers. The current report is based on E-
bicycles which is the technology-based product that is selected. This report explains rationale
with vision and mission, micro/macro analysis, competitor analysis, segmentation analysis. The
market strategy, market growth strategy, resources required for venture and risk analysis are
explained in this report.
MAIN BODY
Rationale for business launch with its mission and vision
Excessive pollution is created in the environment due to the use of fossil fuels which has a
negative influence on quality of air. People have developed an unhealthy lifestyle which is not
beneficial for them to have sustainability. These are the major reasons due to which the need for
E-bicycles is felt which provides a suitable system for the customers to meet their travel needs
without caring much about the fuel emissions. The E-bicycle provides a system of re-charging
the bike with the help of the peddling which is done by the biker. This is useful in saving energy
as well as time of the customers to charge their e-vehicle. This is useful for the customers to
satisfy their health needs as well as to travel farther places with the help of the accelerator which
is provided in this cycle for auto-mobility. The vision of the business is to enhance the quality of
environment by reducing the level of pollution which generated by vehicles on a daily basis
(Martins, 2020). The mission of this organization is to provide high quality products and services
to the customers and expand into new markers consistently for better market share.
Market and industry review with the understanding of the micro/micro analysis of the external
environment
PESTLE analysis is an effective tool which is beneficial for understanding the impact of
different external factors on the performance of the organization in the industry. These factors
are as follows:
Political Factors

The instability in political environment of the country and the Brexit may have a significant
impact of operation capabilities and effective distribution of products and services in the
businesses. The acceptance of governments towards the introduction and use of e-vehicles is
helpful for gaining better advantage in the industry. This provides better support for increasing
the overall performance of the new product in the industry.
Economic Factors
The fluctuation in different factors such as monetary and fiscal policies may have a significant
impact on the performance of the product in the business environment. The inflation in UK
industry may increase the prices for the product which can have a negative impact on the buying
behaviour of the customers towards these products. This may have a significant influence on the
overall success of the product in the industry.
Social Factors
The social factors like changes in different trends may result towards change of taste and
preferences of the customers towards certain products and services. E-cycle is an exciting
product which may provide a better value for money to the customers so it may have a positive
impact on their satisfaction levels in the industry.
Technological Factors
The advancements in new and advanced technological tools are beneficial for increasing the
overall advantage which is beneficial for the product to enhance their performance in the market.
The use of these technique is effective for increasing the profitability of the product ion the
market which is crucial for it to gain a significant level of recognition in the market.
Legal Factors
The legal frameworks may have a significant influence on the overall experience of the business
in the market (Benzaghta and et.al., 2021). Several restrictions may get imposed on the business
due to the changes and developments which are made in the policies and procedures of the
business relating with their legal frameworks.
Environmental Factors
The E-bicycles releases no carbon footprint in the environment which acts as an advantage for
the business in the industry (Martins, 2020). These aspects are considered as important for the
business as the brand image of the organization may flourish due to these factors which has a
positive impact on the overall success of the product in the industry.

Competitor’s analysis
Porter’s five forces is an effective business model which is used in order to analyse the
competitive environment of an organization with the help of different factors. These factors are
as follows:
Competitive rivalry
There are less players in the market which are focussing on the concept of E-bicycles as it is a
new concept which is a weak force. The competitors have less power which provides major
advantage to the business to gain a significant completive advantage and enhance their overall
market share in the industry. This may be helpful for the businesses to grow and achieve better
success in the industry.
Threat of substitutes
This force has high power due to the availability of many substitutes like motorbikes, cars and
other transport options available with the customers. This maty have a negative impact in the
overall performance if the business in the industry as the customers may prefer the other
products due to less prices or better ROI. This can act as a negative factor in the overall success
of the business in the competitive industry.
Threat of new entrants
Power of this force is weak as it is difficult for the new business organizations to establish a
product business in the automobile sector (Benzaghta and et.al., 2021). It requires high
investment and risks to enter in this field and gain better opportunities which is not possible for
may people and organizations. This factor has a positive impact on the overall development and
growth of the product as less competition will be created for the business to grow.
Bargaining power of buyer
Buyers have moderate power of bargaining in the industry which is a positive factor for the
business as there are less options available in comparison with the products and services which
are provided by the business in the industry (Martins, 2020). However, the availability of several
substitutes may increase the problems for the product to sustain its position in the market
successfully.
Bargaining power of supplier
The power of this force is weak as there are many options available worth the business to
procure their raw materials and machines for the production process. This aspect may not be an

issue as they can buy their desired raw material and other goods at the desired price ranges which
is beneficial for the product to grow in the industry.
STP analysis
STP analysis stands for segmentation. Targeting and positioning which can help an organization
to determine the customer segment which is to be targeted by positioning the product or service
of the organization with the strategical alignment to get acquire higher profits. Moreover,
viability of the commodity is supported by this analysis as it predetermines the most beneficial
customer segment to which the dynamics of products can relate. This provides a direction which
is followed to sell the product in the market. Main objective of this analysis is to relate the
product with the customer demands to eliminate the risk of irrelevance to their needs.
Segmentation
This is the initial step ion which the organization has to determine the segmented customer base
in terms of their dynamics. There are many segments of the population from which the
organization has to choose one of the most suitable and beneficial segment that can give the
highest profitability to the firm than other segments. Demographical, psychological, behavioral
etc are the segments of the population. Demographic segmentation is chosen that will be targeted
to sell solar cycle to the customers.
Targeting
After the segmentation of they market on the demographical basis, know it is time to
acknowledged exact type of customers that will be targeted by the business. Therefore, it is
decided that the targeted customer base of the organization will be the ones who have higher
income that means the richer section of the society. Moreover, in the richer section the main age
group that will be targeted is the one between the age of 20-30. Health awareness in this age
group provides a rationale for targeting it (Martins, 2020). E-bicycle is trendy and stylish which
is preferred by the youngsters so it is the most beneficial aspect.
Positioning
one this step strategies to target the customer base by proper positioning of the product is
determined which is very essential as it depicts the whole journey of the commodity. Innovative
methods will be adopted to position the product perfectly in the market by effective advertising.
This will help the organization to convey the information regarding the product to create hype in

the customers. Moreover, the product will be designed with stylish effects which can reflect its
uniqueness. Design of the product will reflect the integrity of the user which will attract the
targeted customer base.
Marketing mix
There are 4 basic elements marketing mix that is price, product, place and promotion.
Every area of marketing plan is covered in the extended marketing mix. The viability of the
product or service is ensured by the marketing mix by enhancing every aspect related to the
commodity. A perfect plan or strategy can be formulated by the use of marketing mix which
depicts the customer preference and other factors of market. It enhances the viability of the
product and ensures it success in the market by introducing perfection in every factor that are
related with the success of commodity.
Product
Product of the organization that is E-bicycle is designed by keeping the standards of the
richer class in consideration. Stylish design of the bicycle is maintained to enhance the looks
which can attract the young generation. Uniqueness in the product is determined by the feature of
electricity generation by peddling. Using this feature the rider can generate electricity that is
stored in the mega battery of the cycle. This feature enables the self driving feature in the bicycle
without peddling it (Benzaghta and et.al., 2021). Combination of self and manual driving feature
ensures the customer needs. Furthermore, there many other features in the bicycle that is a sipper
holder, disc-brakes, digital meter etc. digital meter is another star feature which shows speed,
distance and most importantly it is enabled with GPS technology.
Price
The process of determining the pricing policy of the product has to consider reasonability,
feature of the product, quality of the product, cost coverage incurred in production, feasibility of
the customers to purchase it etc. so that the price matches every aspect of the product and it must
not depict the product as unworthy. Pricing policy of the product is determined after evaluating
its worthiness and the willingness of the customers to pay for it. Standardized pricing is
determined for the E-bicycle as it targets the niche market segment (Martins, 2020). The
affordability of the product depicts the lavish preference of the customer.
Placement

It is also a very necessary aspect because it relates to the accessibility of the customers to the
product and also contains the element of consumer demands. Thus, the E-bicycle will be
available on the online e-commerce platform known as Amazon.in. Through this platform the
customers can purchase the bicycle with the comfort of their home. For increasing the demand of
the product in the market, specified date for sales will be fixed to create a hype among the
customers (Martins, 2020). This will help in maintaining the craze of the bicycle for a higher
time in which the organization will try to maximize its long term profitability.
Promotion
Product will be promoted by the delivery partner on their application which have continuous
movement of the customers. Moreover, offline marketing will be done by advertising the product
through different channels (Khajezadeh and et.al., 2019). Hoardings on billboards, newspaper,
television etc. are the sources where the product will be promoted to reach a wider customer
base.
Market growth strategy
Ansoff growth matrix
This matrix has four basic strategies that are thoroughly explained below:
Market penetration
This strategy aims for the increment in the sales volume of the current product of the firm in
existing market which makes it the least risky strategy among the four. There are many ways by
which a business can increase the sales of the existing commodity (Clarissia, 2019). This can
help the organization to cover higher market share and eliminate the competitors.
Market development
This strategy is slightly riskier as it focus on introduction of the current product of the
firm in new markets. This helps the organization to expand the size of the business and target
higher customer base (Dawes, 2018). Following this strategy a business may enter the untapped
market which have abundant amount of opportunities and least competitiveness.
Product development
this strategy focuses on innovation in the product and services of the organization which is
introduced in the existing market. This strategy is highly risky but it can give boost to the
profitability of the firm (Djellabi and etal., 2021). Competitive edge can be gained by the

company if the product stands out from other brands and also relates to the needs of the
customers.
Diversification
This strategy focuses on entering new market with completely new product that is
designed for the customer segment of that particular region. This strategy is highly risky as it
involves the threat of failure (Benzaghta and et.al., 2021). However, it is one of the most
profitable strategy if every aspect of it is enhanced and properly determined with facts and
figures.
The organization will follow product development strategy by which it will introduce
innovative product in the market that is unique in the segment (Teoli, Sanvictores and An, 2019).
Following this strategy the firm will aid to the success of the firm by maintaining higher profits.
Finance options
There are various finance option available for the firm which can be availed to take funds
for the business. Efficient funding can help the organization to perform the business activities
smoothly. Enhancement in business commencement is ensured by the proper funding. Assets can
be purchased with the funds that are aligned with the strategies to produce the effective outcomes
for the organization. Proper allocation of the resource can help the firm to get long term
sustainability as it ensures a smooth cash flow in the business. There are two basic types of
financing that is debt and equity financing. One of the best source for equity financing is going
for a joint venture from which higher amount can be availed. There are several venture capitalists
who are interested in the innovative idea which is one of the most beneficial aspect for the firm.
Debt financing will be availed by the fund from the banks that will be used in day to day
business activities and maintains a smooth flow (Hajizadeh, 2019). Funds provided by these
sources will help the organization to maintain effectiveness in day to day activities and in long
term sustainability as well.
Risk analysis
The business have many risks which are needed to be assessed and the strategies for
eliminating them has to be formulated for maintaining the survival of the firm. This risk is a
result of the macro and micro environmental factor that impacts the profitability of the firm.

Risky factors had to be evaluated by the organization to maintain the sustainability in the
business. The analysis of risk can help the organization to maintain the profitability and be
prepared with the strategies. Proper strategy can be formulated which provides aids to the effect
of the factors that are impossible to be tackled (Benzaghta and et.al., 2021). Organization can
maintain its profitability and smooth flow in the business with proper risk analysis.
CONCLUSION
From the above report, it has been concluded that E-bicycle is an innovative product which is a
useful product and has been beneficial for getting better fame and recognition in the industry. It
has been understood from the above report that this product has been found fit to gain better
opportunities in the business environment due to its unique features and negligible carbon
emission in the environment. The business has better opportunities to grow and gain a significant
market share in the business environment with the help of their E-bicycles which are developed
in order reduce pollution in UK.

REFERENCES
Books and journals
Benzaghta, M.A., and et.al., 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights. 6(1). pp.55-73.
Hajizadeh, Y., 2019. Machine learning in oil and gas; a SWOT analysis approach. Journal of
Petroleum Science and Engineering. 176. pp.661-663.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Djellabi, R., and etal., 2021. SWOT analysis of photocatalytic materials towards large scale
environmental remediation. Current Opinion in Chemical Engineering. 33. p.100696.
Dawes, J., 2018. The Ansoff matrix: A legendary tool, but with two logical problems. But with
Two Logical Problems (February 27, 2018).
Clarissia, M.S., 2019. A study on Ansoff Matrix Technique: As a growth strategy and an
adaptive learning technique adopted in the leading brand of products. Journal of
Composition Theory. 12(9). pp.1494-1506.
Khajezadeh, M., and et.al., 2019. Application of neural network in portfolio product companies:
Integration of Boston Consulting Group matrix and Ansoff matrix. International Journal
of Economics and Management Engineering. 13(6). pp.821-825.
Martins, A.M.A.R.D.L., 2020. Scenarios and Ansoff Matrix: an application to the future of hotel
investment in Portugal (Doctoral dissertation).
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