Innovation and Enterprise: Land Rover's Opportunity in Electric Cars

This report explores the importance of innovation and electric cars in the current market and focuses on Land Rover's opportunity to tap into this sector. It discusses the background of the organization, the current situation, and the strengths and weaknesses of electric cars. The report provides recommendations for Land Rover to improve their product line and boost sales.

Innovation and enterprise

Contents
INTRODUCTION...........................................................................................................................3
Background of organization and description of situation............................................................3
Relevant literature associated with topic.....................................................................................4
Analysis of the product, service or process.................................................................................6
Recommendations........................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Enterprise innovation is the practice of identifying significant, positive change and introducing it
in the enterprise environment. Land Rover is a British brand of four-wheel drive cars, that
exclusively offers premium and luxury sport utility vehicle. Owned by multinational car
manufacturer Jaguar Land Rover (JLR), which has been owned by India's Tata Motors since
2008, JLR currently build Land Rovers in Brazil, China, India, Slovakia, and the United
Kingdom This report includes topics such as background of the company and brief description of
the current situation. Importance of innovation and electric cars in the current market. Strength
and weakness of electric cars and recommendations to overcome the weakness by the company
(Kraśnicka, Głód and Wronka-Pośpiech, 2018).
Background of organization and description of situation
Land Rover is known for their luxury SUVs and their sporty designed vehicles. The
target audience of the company are those who prefers high end premium vehicles as those are the
only people who can afford the cars offered by the company. Land rover is a subsidiary of the
Indian automotive company Tata Motors. Earlier the company used to be a subsidiary of Ford
Motors. In 2012 both companies that is Land Rover and Jaguar came into a joint venture and
there cars were supposed to be manufactured in China which is supposed to be the biggest
automotive market in the whole world. Currently the company is focusing on reducing the
impact on environment that is made by the products of the company. Company is using their
resources in an optimal manner in order to reduce the amount of waste and recycle the waste.
The carbon emissions produced at the time of manufacturing is reduced by 30 per cent in order
to preserve the environment. Other than this aspect company has been a part of activities which
are related to corporate social responsibilities by providing and creating opportunities for
approximately 12 million people. For the last few years the position of the company has seen a
huge amount of downfall as the sales of the company has reduced in many markets. The reason
behind this is because of high amount of competition which the company has not been able to
fight and there is no new attractive innovation by the company according to the changing and
current market needs. There are some decisions which was taken by the company that turned out
to be wrong for the company as entering the Chinese market with diesel engines were not a right
move as most of the consumers there shift to electric cars. In UK due to Brexit and the new tax
reforms imposed by the country the company saw a drastic change in sales in negative manner.

These factors led to a downfall of approx 5.8 per cent of total sales in the global market. In order
to take their competition Land Rover needs to come up with an innovation and needs to sell it as
their unique selling preposition. The current innovation that the company needs to meet is to
manufacture cars which runs on battery instead of gasoline as this will help them to open up a
new segment and compete with competition in the sector. Electric cars is the current upgrade of
the automotive industry and people are preferring it as it is cheaper in day to day use basis and
causes no harm to environment. This strategy may help the company to earn their position and
expected sales in the market (Qian, 2018).
Relevant literature associated with topic
There are many factors which states why electric cars is important for the market and
why Land Rover needs to come up with it. For instance the impact that gasoline cars does on the
environment can be totally reduced.
Energy efficient
It is important for the company to know that cars which runs on battery are 75 per cent
efficient in turning the energy from input into moving energy whereas the cars which uses
combustion engines are just 25 per cent effective which marks a huge difference for the
company. Also the funnel of transmission which is required for the engine to move the motor
and other equipment are used in less amount by electric cars which saves a lot of energy. Other
than this when the brakes are applied in electric cars it automatically transmits the power through
the generator which helps the battery to charge.
Less emissions and greenhouse effect-
This aspect is the main idea behind the introduction of electric cars as they can help the
environment to restore and be safe for everyone as without emissions there will be less amount
of contribution in global warming. Land Rover needs to understand the reason behind the
downfall of sales as urban areas deals with the situation of environmental factors and when
consumers have an option to eliminate this factor they will consider it. Company also needs to
keep in mind that their target audience is the urban people. This also helps the companies to
reduce the impact of transportation and the harmful gases released by it in the environment. This
way sustainable mobility is promoted (Squicciarini, 2017).

Improve the health of people
If there are no of people who switch from gasoline cars to electric cars then it will benefit
people who faces the problem of bad health. People who have asthma and other diseases which
involves lungs or breathing problems has to go through many difficulties from it because of the
air pollution increased by the cars. The chemicals released in the air such as benzene, carbon can
also lead to cancer. This is why it is necessary for Land Rover to come up with cars that runs on
electric motor. This way quality of life also gets increased and the nature remains safe (Sinclair
and et.al., 2018).
Economic growth-
The electric cars are new for the market and new things have a way of attracting people
in a better way. This way the money is thrown into the market and helps the economy to grow.
There is also one other factor which makes the people push to buy these type of cars as the cost
of renewable sources is constant where as cost of fuels keeps on changing. People are aware that
oil has no future. On the other hand renewable sources has which is the prime reason why people
keeps on believing that electric cars are reliable and consistent. Use of these helps to preserve the
environment which saves the economy by not giving a rise to any type of natural calamities.
Technological growth-
Land Rover needs to assess its competition by keeping in mind that with the advancement
of technology many of its competitors are increasing the fuel efficiency and range of cars. Many
of the companies are facing the challenge in making the cars more affordable as technology is
expensive and these products if expensive cannot be afford by everyone. In order to make it
cheaper more advanced technology is needed. This advancement has promoted the use of
renewable energy. There are still a lot of issues which needs to be dealt with such as what
happens to the car that runs on internal combustion engine or the old batteries from the electric
car as batteries have run for a limited period of time. If they are not placed properly it can be
toxic. Many of the engineers are working on this issue to resolve it. There are two reasons why
the concept of electric cars was introduced and important. Its because they were meant to be both
economical as well as ecological. Even if the solution of all these issues is just to replace the
battery after its time still electric cars are the future for societal improvement.

More affordable-
In comparison with both the cars electric cars are expensive initially but in the long run it
turns out to be more affordable than its predecessor. Companies are trying to make it more
affordable and its up to the availability of the technology to make it more cheap. Many
companies has been successful in getting technology at cheap rates which in time will reduce the
cost of these type of cars and make it affordable for a large no of audience (Lianghu and Ying,
2016).
Analysis of the product, service or process
Strength-
Cheaper in daily use-
Fuel for car is pretty expensive as compared to electricity and in the long run it can save
up a lot of money for consumers. It offers a great deal for consumers and give them a chance to
save their money.
Popularity-
Being the new in automotive sector it has gained a lot of fame and popularity in a very
less amount of time because of its unique attributes and many other benefits which has made
easy for companies to market them (Uyarra, Shapira and Harding, 2016).
Safe-
These type of cars are considered safe as they also go through the same testing points as
the gasoline cars. At the time of accident main source of supply of cars get cut after the airbags
have deployed so that there are less chances of severe injuries.
Noise pollution-
Due to no noise produced by electric cars it helps to reduce the overall noise pollution in
the market (Liu and et.al., 2018).
Low maintenance-

There is no need for lubrication of engines in electric cars, this helps to reduce the cost of
maintenance. Other than this the service interval for electric cars are longer than the cars which
runs on gasoline.
Weakness-
Points for recharge-
There are not many areas where fast recharging points can be found out as they are still in
the development and it will take a lot of time for that development to take place which will create
many difficulties such as not considering the options for going out on a long drive or going out
of town for some work this will make the buyers switch out of the idea for getting an electric car.
Electricity is not free-
There are certain charges for electricity and buyer needs to consider it according to its use
of the car because if he or she uses the car for longer journeys or duration then they must check
the efficiency of the car. If the range of the car is not good then the electricity bill will be more
expensive (Su and Wu, 2019).
Short driving range and speed-
Not all of the electric cars are able to run for a longer duration as Tesla. Others usually
have less amount of range and speed which takes longer time to reach somewhere and recharge
the car again and again in less time.
Time of charge-
If both types of cars are compared then here internal combustion engine cars have an
advantage and that is it only took several minutes to refill the fuel tank to full whereas it takes
plenty of time to charge the car even if its charging from a fast charger.
Silent-
Electric cars do not produce noise and it is believed that without noise it leads to causing
accident as people does not have an idea what is coming from behind if there is no noise ( Jones-
Evans and Klofsten, 2016).

Less space for occupants-
Many of the cars that are manufactured as electric does not have occupancy available for
more than 2 persons which removes those consumers who want a family car.
Recommendations
Land Rover has many opportunities to improve their product line and come up with it by
putting as many weaknesses they can step aside. There was an announcement made by the
company years ago but they haven’t delivered the product yet. Now the company has a better
chance to do it all. For instance company needs to come up with an electric car which offers high
range of efficiency and speed as Land Rover manufactures sport utility vehicles and those
vehicles are not used for a short duration. Company needs to take a look under the technology
which was used by Tesla as they are the only competitors who offers the highest range that is up
to 600 kilometers per charge. Also company needs to focus on reducing the time of charge for
car so that people consider it as a option. They also need to take care of charging points and
make it available so that they have a competitive edge. Land Rover needs to come into an
agreement with their government that helps consumer to motivate them into making a purchase.
There are many methods in which they can do that such as providing subsidies to people or
giving them benefits on tax so that they have more reasons to buy their car over their
competitors. Company must offer a solid warranty on guarantee that either its covered for a long
period of time and replaced in case of damages. This will remove the doubts of consumers and
help them to close the deal soon. Being a SUV Land Rover offers occupancy for more than two
people which makes it even suitable for family. Also company needs to keep in mind that their
cars are already very expensive and coming up with an electric car will add more to the cost
which is why company needs to use the technology which is cost effective so that buyers for the
car does not get drift away. This way company can easily boost their sales and tap a new market
which is the future of the industry (Lessem and Schieffer, 2016).
CONCLUSION
From the above studies it has been concluded that Land Rover needs to come up with an
innovation of electric car which offers the same luxury but better technological upgrades to their
customers. In order to improve the sales and earn back their reputation in the market they need to

come up with this otherwise they won’t be able to survive in the market. This report also tells the
importance of electric cars and the changes it has made into the environment. Electric cars has
not only been successful in balancing the environment but they have also helped to improve the
quality of life and reducing the health issues of people. Its due to these changes and benefits
these cars has gained so much popularity in the market. In order to survive in the market Land
Rover needs to focus on overcoming the weakness of this sector and make it more better so that
they can add more unique attributes and contributions into this sector. This will help them to
increase their level of profits and reach their goals and objectives.

REFERENCES
Books and Journal
Lessem, R. and Schieffer, A., 2016. Integral research and innovation: Transforming enterprise
and society. CRC Press.
Jones-Evans, D. and Klofsten, M. eds., 2016. Technology, innovation and enterprise: The
European experience. Springer.
Uyarra, E., Shapira, P. and Harding, A., 2016. Low carbon innovation and enterprise growth in
the UK: Challenges of a place-blind policy mix. Technological Forecasting and Social
Change, 103, pp.264-272.
Squicciarini, M., 2017. Entrepreneurship, innovation and enterprise dynamics. Small Business
Economics, 48(2), pp.273-278.
Sinclair, S., and et.al., 2018. Social innovation, social enterprise, and local public services:
Undertaking transformation?. Social Policy & Administration, 52(7), pp.1317-1331.
Qian, H.A.O., 2018. “The Belt and Road Initiative” and College Students Innovation and
Enterprise Cultivation——Based on the General Education. Journal of Gansu Normal
Colleges, (3), p.21.
Kraśnicka, T., Głód, W. and Wronka-Pośpiech, M., 2018. Management innovation, pro-
innovation organisational culture and enterprise performance: testing the mediation
effect. Review of managerial science, 12(3), pp.737-769.
Lianghu, M. and Ying, J., 2016. A Study of Coupling Degree between Innovation and Enterprise
Performance of Jiangsu PV Industry. Journal of Changzhou University (Social Science
Edition), (3), p.10.
Liu, Z., and et.al., 2018. Intellectual property protection, technological innovation and enterprise
value—An empirical study on panel data of 80 advanced manufacturing SMEs. Cognitive
Systems Research, 52, pp.741-746.
Su, X. and Wu, S., 2019. Innovation Of Enterprise Cost Management Under Internet Plus Era.