Innovation and Entrepreneurship in the Automobile Industry

This report explores the importance of innovation and entrepreneurship in the automobile industry. It discusses a start-up business idea in the London-based automobile industry, industry profile, business model, challenges, prospective customers, marketing plan, competitor analysis, source of funding, and intellectual property.

Innovation and
Entrepreneurship

TABLE OF CONTENTS
Executive Summary.........................................................................................................................3
INTRODUCTION................................................................................................................................4
MAIN BODY......................................................................................................................................4
Start-Up Business Idea (Product/Service)....................................................................................4
Industry profile............................................................................................................................5
Business Model............................................................................................................................5
Point of differentiation................................................................................................................6
Challenges....................................................................................................................................7
Prospective customers.................................................................................................................7
Marketing plan.............................................................................................................................8
Competitor analysis.....................................................................................................................9
Source of funding.........................................................................................................................9
Intellectual property....................................................................................................................9
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11
Books and Journals....................................................................................................................11
Online........................................................................................................................................12
APPENDIX....................................................................................................................................12

Executive Summary
Innovation and entrepreneurship is very important for small enterprise and star-up
companies. This report will help in identifying the gaps in market to move formed a business
idea. It will tell about the strategic growth of the given start-up and the importance of
innovation and entrepreneurship in the development of business.

INTRODUCTION
Innovation is a tool for entrepreneurs to explore change and use it as an opportunity to
grow and develop business. It is presented as a discipline which is being learned and practiced.
Entrepreneurs need to find differ sources for innovation, bring according changes and look for
the opportunities for launching a successful innovation (Raju, Kumar, and Nikkat, 2020).
Innovation in an enterprise s not about inventing a product it is rather about producing certain
changes in the already existing products. This helps in finding new approach towards some
problems. Pesla is a start-up company works in an automobile industry. It is headquartered n
London, UK. This company works on a smaller level in the UK economy. The goal of the
company is to provide a sustainable approach towards the manufacturing and running of cars.
The business idea, challenges and their business plan is discussed in the report in detail.
MAIN BODY
Start-Up Business Idea (Product/Service)
The proposed business idea is to establish London based automobile industry, that tends
to provide smart cars to the customers. The business tends to provide smart electric cars to the
customers which are having additional features like self driving and voice control summon
options as well. These features can be e accessed by the customers while they are within the
car or remotely through the means of mobile phone application as well (Thomas and Maine,
2019). Thus in order to provide tangible products a company Pesla has to be developed which
brand provide technological based products to the customers while implementing innovative
approaches as well. Organisational products like smart cars, that can be achieved by the
customers by making pre-orders through any store reservation for making reservations through
company website as well. Several physical company stores will be developed within UK at
various geographical locations through which customers will be empowered to develop a direct
contact with the corporation for fulfilling the requirements. Well also customers can also book
the type of service which they want to achieve through mobile application approach for why
using companies official website by which they can showcase desired requirements which can
be fulfilled by company through various means like software and hardware approaches. The

company Pesla tends to provide a smart electric cars due to which the developed car is being
researched with a proper work collaboration of hardware and software by which scheduled
updates can be achieved by the customers which will improve the overall work synchronism
among software and hardware which will result in higher work productivity.
Industry profile
In the current time period customers are highly motivated to utilise technological
advancement within their working process. Due to this customers asking high level of
engagement in integrating several innovative approaches within their vehicles for improving
the overall ride safety while also improvising the quality of ride (Smith and Clegg, 2017).
Therefore due to this companies are also highly motivated to integrate several innovative
approaches like establishing a secure communication between vehicles. With this approach the
week of scan automatically improvise there is speed and acceleration such that chances of
having an accident can be reduced. Not only this communication will help reducing the chances
of colleges in but also help in properly managing traffic conditions as well increase like several
customer use online maps to identify the current traffic conditions. Therefore having a vehicle
communication will allow drivers to choose the alternative path through which the
concentration of traffic can be mobilised efficiently. Since several corporate within the
automobile sector are highly being motivated to switch their operations from traditional cars to
electric cars which are cheaper in cost. While also are providing new high level of road safety
features as well, this can be seen in the current time as well. Due to the fact that there is an
increment in registration of cars within UK in the year 2020 has being increased to 1.643m units
(Statista Research Department, 2021).
Business Model
Revenue within the automobile sector is being achieved by selling developed product at
an higher cost then compared to initial cost. Then on the basis of differentiation revenue is
being achieve through which profit margin is being accomplished (Tomlinson, 2019). Auto open
industry traditionally also used to sell the hardware based services for their products, which

include services like tools and small devices for the vehicle, this include services like Original
equipment manufacturers (OEM). Through this approach it ensures that organisational services
are being provided to maintain customer’s level of engagement with corporation. However in
the present time, services are being provided through software updates.
The business life cycle consists of launch in which the business is being introduced to the
market and customers are having less understanding about the offering. Second one is the
growth in which company tends to increment in its sales through which overall brand
awareness is also being increased. This is the third stage which arises before the peak value for
the corporate in this section overall sales faces saturation. Where maturity is the final dreams
to which the business is being able to achieve its peak value within the market. Then arises the
final stage which is decline in which organisational seals are being reduced.
Point of differentiation
The proposed business plan is to develop car manufacturing company within the
automobile sector. The company tends to provide smart electric car options to a wide range of
customers at an affordable pricing. In the current time companies often provide automobile
products to the customers which work upon the utilisation of petrol diesel and CNG options as
well (Page and Het.al, 2017). Therefore by providing electric car options to the customer’s wide
range of differentiation can be seen by the customers through whom they will be assured that
they are utilising innovative type of approaches for fulfilling their requirement. With that in
order to to improve the performance gap smart self driving options are also being integrated
within the developed product by which the organisation will be able to provide product which is
beyond customer's expectations and can manage to reach the augmented level of customer
satisfaction. With that several other organisational benefits will also be provided to the
customers as well which include service is like specific automobile parts which are being
implemented within the vehicle to improve its performance (Hopkins and Schwanen, 2018).
While also various other approaches will also be provided like software updates for improving
the self driving feature of the product which will lead to hire work synchronism between
hardware product and software.

Challenges
A start-up such as Pesla has to face many challenges n order to survive in very
competitive and changing modern markets. Some of the barriers and issues that the company
has to experience are, firstly, the deadline in production (Sanayee, and Jalolovich, 2021). This is
a really big hurdle for pesla to cross as the CEO of the company has given very high hopes and
made ambitious production goals towards the innovative electrical cars. The working of car in a
new way has made the customers very curious and become popular among the public. But
Pesla is facing many struggles to meet the goal of delivering demanded cars during the deadline
given to its potential customers.
Manufacturing a new product takes time and lot of manpower with some specific skills.
This is resulting in delaying the production making the target audience very anxious and thus
forming a trouble for the company. Managing the manufacturing of an automobile requires a
lot of cash flow and thus, lot of capital is being used in receiving a potential profit. The project is
consuming lots of cash in batteries and other related products (Leskinen, 2020). This is making
Pesla fall in a tough spot. Adding to this, running of an electric car in city where people are
comfortable with petrol and diesel cars is going to be very difficult. Making people learn the
advantages and use of this new product is going to take a lot time not to mention producing
charging points as a substitute for petrol pumps will be challenge too.
Prospective customers
The targeted customer base for Pesla is firstly the people who believe in changing their
lifestyle to form a sustainable environment for future generation. They are willing to switch
from the use of fossil fuels to the modern use of electricity. This innovative product by Pesla is
offering complete automation in some of its models along with being electric. This is to attract
customers who are looking for more comfort while driving on road. This product is for all the
employees, sports enthusiast, upper and middle class people (Nambisan, Wright, and Feldman,
2019). This for the people who have a perception of being environmental friendly and want
long term costs effectiveness. This is best for the customers who are new drivers. It attracts

people who are curious to try any new technological advancement. Products from Pesla can be
a bit expensive for the average population of the country so main target is on wealthy
individuals and households. Pesla has focused more into attracting Younger generations as they
have grown up to see the technological updates and must make use of one in this process. It
also focuses on senior people of the country to make their driving experience easy and smooth
going.
Marketing plan
Marketing plan of the Pesla makes the company stand out in the automobile industry.
The company is doing well in the London market. It is working on their beliefs that electric cars
can make new approach towards the future. The company has combined both automobile and
technological worlds together to form such an amazing product. The technology used in Pesla
cars is offering efficient way to sustainable energy in future (Coulson-Thomas, 2017). It avoids
the use of hybrid, hydrogen and fossil fuel cars. The 4P’s to address the marketing strategies of
Pesla are:
Product: This deals with the products offered by the company to its target audience.
Products from Pesla are from the markets of automotive, energy storage and energy
generation. It offers a unique approach to the automobile use to its customers. The electric
vehicle power components, batteries are also belong to the range of products by Pesla to its
customers.
Place: Pesla operated in market of London which helps in them reach to the high class,
middle class, younger generations and seniors all in a single market (Dadzie, and et.al., 2017).
The products from Pesla are showcased in malls, company owned stores and galleries and
desired customers can even approach from the company’s website.
Promotion: Advertising the product to the target audience is very important for the
Pesla to create a brand awareness and reach out to maximum people. This company has not
left any change in their marketing strategies. It has viral marketing along with personal selling.
The company has used many events as an opportunity to promote their products. It has even
trying their best to promote via digital platforms and using the social media.

Price: The prices from Pesla support the premium as well as profitable targets. Prices
have an impact on the perception of the customers regarding the product (Pomering, 2017).
The organisation works with having pricing strategy of premium pricing strategy and market
oriented pricing strategies for attracting the customer base.
Competitor analysis
Pesla being a start-up has many competitors which are already existing and big firms.
Customers trust these brands more than Pesla as they have proved themselves to be the best
and work on international levels. The brand of these companies is way more than that of a
start-up company like Pesla (Keränen, and Nasibli, 2020). Porsche has built a name for it and
recognised as high quality sports car. It has charging stations which are known to be the fastest
in the world. BMW o the other had is yet another big and reputed company which has the
feature of high roof hatch back and have a high end name recognition. Jaguar is offering an all
electric SUV high end car.
Source of funding
Crowd funding: This is one way of getting funding for a start-up like Pesla. It is the
fastest and the safest way to get funds. The crowd just want the products and the services
offered by the company in return of funds (Cacciolatti and et.al., 2020). Reputable start-ups like
Pesla are successful in achieving crowd funding. Pesla had an innovative approach to an old
existing problem and attracted the crowd as their resource for funds.
Incubators: They are not looking for equity unless they are funding a start-up. These
people incubate and mature the start-up to apply for accelerator programs (Brandl, Darendeli,
and Mudambi, 2019). They also provide mentorship, office space and even some help required
by the start-ups such as Pesla. They provide funds in return of having a share in the company.
Intellectual property
It is the property which includes human intellects. When the company is looking for
protecting their idea from being used by others without their permission, they must have legal

protection of these intellectual properties (Bican, Guderian, and Ringbeck, 2017). Having
property rights over the intellectual properties will protect the idea of innovation, an invention
or even a symbol for the company. Some of the intellectual property to save the idea of
business for Pesla is:
Patents: It is a type of protection which is available for some period of time. It is used to
protect invention and innovations which are new, non obvious and useful to the population of
the country. Having a patent can prevent others from offering sales, making or using the
product from under the law.
Copyrights: It is not same as patents. It protects the original work like literary work,
music and even protect computer software and architecture in today’s world. Copyright
protection are automatic when on produces something (Aristodemou, and Tietze, 2018). Rights
under the copyright are violated, the company can take legal actions against them which will
require their registration of copyright.
Trademarks: They refer to protecting symbols which is used to recognise the brand. It
can give a protection for a word or phrase used by the company as their motto or anything like
that. These rights come from the use of trademark and its registration is not required during
any legal complains. It can be use for indefinite time period.
CONCLUSION
From the evaluation it is being concluded that companies have to take several steps by
which it can ensure that it is being able to take suitable steps by which new and rare products
can be provided to the customers. With this approach it can be ensured that suitable steps can
be taken to identify the specific areas at which innovation has to be implemented by which
overall performance can be improved.

REFERENCES
Books and Journals
Aristodemou, L. and Tietze, F., 2018. The state-of-the-art on Intellectual Property Analytics
(IPA): A literature review on artificial intelligence, machine learning and deep learning
methods for analysing intellectual property (IP) data. World Patent Information. 55.
pp.37-51.
Bican, P.M., Guderian, C.C. and Ringbeck, A., 2017. Managing knowledge in open innovation
processes: an intellectual property perspective. Journal of Knowledge Management.
Brandl, K., Darendeli, I. and Mudambi, R., 2019. Foreign actors and intellectual property
protection regulations in developing countries. Journal of International Business
Studies. 50(5). pp.826-846.
Cacciolatti and et.al., 2020. Strategic alliances and firm performance in startups with a social
mission. Journal of Business Research, 106, pp.106-117.
Coulson-Thomas, C., 2017. Stimulating creativity, enabling innovation and supporting
entrepreneurship. Management Services. 2017(Summer). pp.26-29.
Dadzie, and et.al., 2017. How firms implement marketing strategies in emerging markets: An
empirical assessment of the 4A marketing mix framework. Journal of Marketing
Theory and Practice. 25(3). pp.234-256.
Hopkins, D. and Schwanen, T., 2018. Automated mobility transitions: Governing processes in
the UK. Sustainability. 10(4). p.956.
Keränen, A. and Nasibli, N., 2020. How do startups prevent encountering the funding gap?.
Leskinen, S., 2020. Challenges Faced by Startups Preparing for Growth–an Ethnographic
Approach.
Nambisan, S., Wright, M. and Feldman, M., 2019. The digital transformation of innovation and
entrepreneurship: Progress, challenges and key themes. Research Policy. 48(8),
p.103773.
Page, S.J. and Het.al, 2017. Case study: Wellness, tourism and small business development in a
UK coastal resort: Public engagement in practice. Tourism Management. 60. pp.466-
477.
Pomering, A., 2017. Marketing for sustainability: Extending the conceptualisation of the
marketing mix to drive value for individuals and society at large. Australasian
Marketing Journal (AMJ). 25(2). pp.157-165.
Raju, G.S., Kumar, N.S. and Nikkat, S., 2020, December. Technology based startups pivoting for
sustainability: case study of startups. In IOP Conference Series: Materials Science and
Engineering (Vol. 981, No. 2, p. 022083). IOP Publishing.
Sanayee, S. and Jalolovich, K.A., 2021. CHALLENGES FACED WITH THE AID OF STARTUPS SMALL
AND MEDIUM ENTERPRISES. Oriental renaissance: Innovative, educational, natural
and social sciences, 1(4), pp.69-76.
Smith, K. and Clegg, P., 2017. Experiencing Business Start-Up Through an Enterprise Placement
Year. In Entrepreneurship Education. Emerald Publishing Limited.

Thomas, V.J. and Maine, E., 2019. Market entry strategies for electric vehicle start-ups in the
automotive industry–Lessons from Tesla Motors. Journal of Cleaner Production. 235.
pp.653-663.
Tomlinson, M., 2019. Information and technology flows from the service sector: a UK-Japan
comparison. In Services and the knowledge-based economy (pp. 209-221). Routledge.
Online
Statista Research Department, The automotive industry in the United Kingdom statistics &
facts, 2021 [Online]. Available through:< https://www.statista.com/topics/1982/the-
uk-automotive-industry/#topicHeader__wrapper >
APPENDIX
The overall business ides is to introduce an electric based car to the marketplace, which is
having several associated advantages. There are several associated advantages as well with the
product which include options like controlling the vehicle through the mobile application as well.
Also with that various other advantages as well are being accomplished, which include options
like self driving.