Environmental Analysis of an Industry: Electric Car Market Overview

This report provides an environmental analysis of the electric car industry, focusing on Volvo's strategic moves and the major forces shaping the business environment. It examines the shift towards electric vehicles, driven by factors like environmental concerns, government incentives, and technological advancements. The report uses Porter's Five Forces model to analyze competitive rivalry, new entrants, buyer power, supplier power, and the threat of substitution. It also discusses the impact of technological changes, customer demand, and the need for new talent in the industry. The report further explores the production and marketing of electric cars, highlighting opportunities for entrepreneurs and assessing the long-term profitability of related businesses in the automotive sector. It emphasizes the benefits of electric vehicles, such as zero emissions and lower running costs, while also acknowledging challenges like the limited availability of charging stations and higher initial purchase prices. The report concludes by analyzing the growth of the electric vehicle market and Volvo's plans to increase its electric car sales, including the company's goal to have half of its sales from electric cars by 2026.

Environmental
Analysis of an
industry -
Assessment 1

Table of Contents
INTRODUCTION...........................................................................................................................1
a) Major forces that shape business environment of car manufacturing industry. Analysis that
how industry changed within last few year. Critical assessment that changes may take place in
future and also mention reasons for such changes. Particularity discuss the reasons behind the
drive towards the production of electric cars and also provide link to the changes that have
taken place already within industry as organisation try positions to gain a competitive
advantages...................................................................................................................................1
b) Production and marketing of electric cars .............................................................................4
Other business in automotive sector which are not profitable to long term investment.................6
CONCLUSION...............................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Electric vehicles are the vehicles which can uses one or more than one electric motors
for momentum. it can store electricity in an energy storage device called as battery. Electric cars
can runs partially in electricity in the form of batteries or as fuel cell. Present report lays
emphasis on Volvo cars a premium car making company has launches its electric cars in 2019.
Report focuses on the major forces sharing the business environment of car manufacture and
also analysis that how a manufacturing industry changed over last few years. it also highlights a
critical assessment of the Volvo as well as other changes that can take place in futures and also
explains reasons behind it. Report focuses on production as well as marketing of electric care
which is linked to global automobile industry that will not profitable in long run to invest(Ehsani
and et.al., 2018) .
a) Major forces that shape business environment of car manufacturing industry. Analysis that
how industry changed within last few year. Critical assessment that changes may take
place in future and also mention reasons for such changes. Particularity discuss the reasons
behind the drive towards the production of electric cars and also provide link to the
changes that have taken place already within industry as organisation try positions to gain a
competitive advantages.
Major forces that shape business environment of car industry.
Five forces Model of Michael Porter- This model identifies and analyses that can shape every
organization. it also assist to determine the organization's strength and weakness .this model can
be applied for any segment related to economy to search for profitability as well as attractiveness
these forces are given below(Widmer, Cook . and Sieber,Qualcomm, 2017).
Competitive Rivalry - This industry refers to various competitions and also their capacity to
uncut an organization. Volvo must deal with various strong forces of opposition. Component of
five forces helps to determine that how organization affect each other. In Volvo the following ext
renal factors are the responsible for competitive rivalry such as innovation,market share. Also
automotive industry has also high exist barriers. Volvo also competes in term of
cost,electronics,brad image and also in terms of fuel efficiency(Nykvist. and Nilsson, 2015).
New entrants threat- it is quite difficult for new brands to take entry in the automobile market.
As companies like Volvo spend huge investment,skilled labors,distribution network to maintain
their business. Another factor is competition with existing companies unless and until new
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brands brings something innovative to the market. Here brand image and reputation plays a
major challenge for new brands.
Bargaining power of Volvo's customer or buyers- Volvo company's customer can easily
switch from one company to another. Each and every purchase of Volvo can be in moderate in
prices. Thus even a small change in the customer 's demand put a hug significance on outcomes
of the Volvo(Fincham and Amroziak, Charge Fusion Technologies , 2017)..
Bargaining power of Volvo's suppliers- Bargaining power of suppliers is considerably low as
raw materials is always available in plenty and also switching from one supplier to another is
easy for them. Supplier don't have their own control the distribution as well as sales of their
product to Volvo.
Threat of substitution-Volvo company faces the threats of substitution. such as buses,train ad
taxis,bicycles. Thus no one can provided the kind of convenience that an automobile provides
especially car. alternative mode do not faced the maintenance but it is the matter of prestige that
owing a car. Thus it is is more cheaper and easier to tale a bus or a train(Cano and et.al.,2018).
Automobile industry has changed with last few year in terms of industry developments of
electric vehicles in European Union as it increases every year. The number of electric vehicles
launches double in 2013 s compared to 2012 and also leads to the growth of 50% in 2014. The
demand of customers such as nowadays customer want more environment friendly vehicles they
are more conscious to buy electronic vehicles. Governments are promoting more electronic
vehicles. They provide a range of subsides and other benefits But automobile industry also
facing decline sales due to the enforcement of Brexit. As global makers can canceled the fresh
investments makes they shutdown or relocate their existing plants.(Mi and Masrur, 2017).
Impact of New Technology-Electric motors are much like cellphones as they are enough
capable of doing more things. In future references automobile industry deals with major
technology in order to deliver most safest ,advanced as well more comfortable vehicles. By
2025 Volvo produce and sells around 50 percent will be in electric. Volvo company applying
latest technology as well as propulsion technology to make switch to more electric cars to makes
them more easier and enjoyable. As they delivers mild Hybrids a seamless and more effective
and efficient driving experiencing to customer.
Artificial intelligence as well as machine learning has a vital role in the future references of
automotive industry. As they are becoming more common in cars such as becoming IoT Devices
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that can connect to smartphones and take voice commands. They will also used sensors in a
Volvo car that informs the owner that the cars needs service from a mechanic or not. In the
future depending on the car mileage Volvo cars will able to estimate its performance on the basis
of its mileage. it also setup appoints and also informs drivers the safety issues regarding to the
malfunctioning of car (Jeong,KT Corp, 2016). Self driving Technology has been testing to some
companies lie Volvo .as various numbers of cars are broadly accepted the changes in cars as they
have semi autonomous capabilities such as driver assisted technology. It also included in the
automatic braking sensors ,also mapping technology that can examine the blinds sports. Cameras
in the back as well as front of car.
Customer demand and income- As with the increase in the customer demand as well as their
income they need more environment friendly vehicles. Their desires to reduce e carbon
footprint .as some of the customers are even willing to pay more for the low emission
alternatives(Lu and et.al., 2016).
New jobs as well as needs for new talent-In today's world data engines are double in some
plants while it enhances 80 percent in other faculty of engineers. Software engineers are needed
will rise rise up to 90 percent. These new job will asset the automobile industry to enhance the
better use of technologies at reducing labor cost,operating expenses as well as other overhead by
assuring that they competitive in the digital age.
The reasons drive towards the production of electric cars and also link them
No fuels,no emissions- This plays the vital role to attract most of the customers towards the
electric cars. Customers of Volvo wants to decrease personal impact on environment so that can
choose electric vehicles as here customers demands also increases with time so they demanded
for electric vehicles. The electric engine of an electric vehicle is a closed circuit so electric car
does not produce any gases regarding to global warming. Here there is no need of petrol and
diesel which is good for carbon footprint. Even if someone's home runs on renewable energy
from good source then carbon footprints shrinks drastically(Partovi, Mojo Mobility Inc, 2017).
Running cost- Through electric cars the problem of paying more for petrol and diesel eliminate
totally. as it cost very low as compare to non electric vehicles. customers could even spent
around 96p and save around £ 59 a year which is comparatively much more better than a non
electric vehicle and it is 100 percent renewable.
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Low maintenance-Electric vehicles have lower maintenance cost than other non electric
vehicles. Petrol as well as diesel engines needs expensive engine maintenance cost. They can
require maintenance cost all over their lifetimes while electric vehicles need not any expensive
cost.
Performance- Driving a car is much more fun when it comes on road. In the past experience
electric cars are not giving better performance. They give the sleekest image and also people had
low expectation as how better can electric war will be than the petrol and diesel engines. As
various number of manufactures have came into market and then the performance will
enhanced. As electric engines can generate at instant torque that means that all their power can
induce from starting point and also gives smooth as well as responsive acceleration. They have a
low center of gravity that can improves riding comfort,handling(Tan, Ramachandaramurthy . and
Yong, 2016).
b) Production and marketing of electric cars
Opportunities that production as well as marketing of electric cars can represent
entrepreneurs as well as business executives. Also identify and critically asses other business
which are currently linked to the global automotive industry that may not be profitable in the
long run to invest on.
Electric vehicles are considers as self propelling vehicles which are used by the
passengers. Electric vehicles are known as the vehicles of the future that are highly likely to
make conventional vehicle. According to the global electric market vehicles it grow an majestic
CAGR of around 15% in order to generate revenue over the period from 2016 to 2029.
factors that impacts the Global Electric vehicle market growth as well as production
The growth of increasing electric vehicles as well becoming affordable commodity owing to the
growing incomes all over the world. Thus the sharing of percentage of electric vehicles within
the automobile industry is extremely small in the current situation. it is growing highly to enlarge
at a more faster rate than the rise in the fuel prices and also at the growing rate of depletion. The
government rules and regulation for the minimizes the use of greenhouse gases that are emitted
by the vehicles. Also the attractive incentives provide by the government of different countries to
push the sale of electric vehicles. Here customers are also provide benefits such as Tax
exemption,eliminate selling prices and also provide fees charging points of electric
vehicles(Partovi, Mojo Mobility Inc, 2017).
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Thus electric vehicle have more benefits as compare to the conventional vehicles but it
come along with the a high price which is not satisfactory for customers as it may evoke a lack
of interest towards the market. Scarcity of charging points in major cities of developed countries
is a big hurdle in the increase of growth of the global electric vehicles market. The drainage
system of battery can put the traveler in to risk due to the loopholes in the electric vehicles
creates a major drawback for the rise of growth of electric vehicles for the market. Electric
vehicles generate excellent torque at low speeds but there is a drop of performance rate as
compare to the conventional vehicles. Due to this difference in performance also creates as a
hurdle in the growth of global electric vehicle market.(Lu and et.al., 2016).
Global electric vehicle market segmentation and also its forecast
Volvo cars goal is to increase its sales for electric cars up to 50% by 2025.this is
announced by the company in Beijing. According to the assignment that all the new model of
Volvo cars released from 2019 will either in Mild Hybrid or battery electric vehicle. The
company's master plan is to make half of its sales from electric cars by 2026 as it consider as a
robust in china known as the world recognized as well as leading market for electrified cars.
Global electric market evaluation by region
In North America,Europe,as well as Asia Pacific regions there is highly widespread use
of electric motors. There is a well developed and also extensive charging infrastructure along
with good incentives provided by the government to increase the growth of electric vehicles. In
Latin America as well as in Middle East and also the regions of Africa shows a slow adoption
of electric vehicles. These regions will show a slower growth of electric vehicles.
Charging speed
Refueling a traditional car at a petrol station takes a few minutes as the infrastructure
already exists but full battery of electronic cars even it has a fast charging battery would take 20-
30 minutes as it depends upon the battery size. Here slow battery take multiple hours(Cano and
et.al.,2018).
Technology based on electronic vehicles batteries
Batteries based on recent electronic vehicles are based on li-on technology. Here
variation come long such as large format cell are more expensive because they are not used from
same economies. As they are less exposed to overheating.
TCO evolution
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it can consist the fuel price,its maintenance as well as its prices and also its infrastructure
cost of vehicles regarding to its lifespan. Here sometimes financing as well as insurance cost is
also included. Here the cost is also a major issues as TCO For electronic vehicles is significantly
higher than ICE( traditional vehicles).
Other business in automotive sector which are not profitable to long term investment.
Car Rental business-Many people find it more convenient to rent a car on a particular
occasion but it has also some disadvantages in long term such as business can be locked into
inflexible or long term agreement that will be difficult to manage another factor consider as
leasing agreement may be more complex to mange rather than buying and add to the
administration (Jeong,KT Corp, 2016).
CONCLUSION
from the above report it is concluded that electric vehicles are more convenient than the
petrol and diesel vehicles. They have low maintenance cost, emit less pollution as compare to
other traditional vehicles. Hybrid cars are more more environmental friendly. As with the help of
electric vehicle the problem of petrol and diesel will solve as it cost very low as compare to
them. Report also laid emphasis on the major forces which shaping the environment business
such as Porters five forces for example competitive rivalry, threat of new entrants, Bargaining
power of customers and suppliers and also threat of substitution. Report also highlighted that
Apart from production as well as selling of electric cars it can identify new as well as emerging
business opportunities such as impact of global electric vehicle on market such as government
can promote the electric vehicle over conventional vehicles. It reduces dependency on fuels. it
also concerns about air pollution caused by traditional vehicles. it also laid emphasized on that
Volvo cars increase its electric cars sales up to 50% in china. They will released mild hybrid cars
in 2019 but also show some less sale in United Kingdom due to the influence of BREXIT.
REFRENCES
Books and Authors
Cano, Z.P.and et.al.,2018. Batteries and fuel cells for emerging electric vehicle markets. Nature
Energy.3(4). p.279.
Ehsani and et.al., 2018. Modern electric, hybrid electric, and fuel cell vehicles. CRC press.
Fincham, C.C. and Amroziak, J.R., Charge Fusion Technologies LLC, 2017. Systems and
methods for electric vehicle charging and power management. U.S. Patent 9,853,488.
Jeong, M.H., KT Corp, 2016. Management of electric power demand in electric vehicle charging
stations. U.S. Patent 9,227,522.
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Lu, J., and et.al, 2016. The role of nanotechnology in the development of battery materials for
electric vehicles. Nature nanotechnology.11(12).p.1031.
Mi, C. and Masrur, M.A., 2017. Hybrid electric vehicles: principles and applications with
practical perspectives. John Wiley & Sons.
Nykvist, B. and Nilsson, M., 2015. Rapidly falling costs of battery packs for electric
vehicles. Nature climate change.5(4). p.329.
Partovi, A., Mojo Mobility Inc, 2017. System and method for charging or powering devices, such
as robots, electric vehicles, or other mobile devices or equipment. U.S. Patent 9,722,447.
Tan, K.M., Ramachandaramurthy, V.K. and Yong, J.Y., 2016. Integration of electric vehicles in
smart grid: A review on vehicle to grid technologies and optimization
techniques. Renewable and Sustainable Energy Reviews..53. pp.720-732.
Widmer and etal., 2017. Wireless power transmission in electric vehicles. U.S. Patent 9,561,730.
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