Porter's Five Forces Analysis: Wireless Chargers for Electric Vehicles

This report applies Porter's Five Forces model to analyze the competitive landscape of the wireless charging market for electric vehicles. The analysis examines the threat of substitutes, the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, and the intensity of rivalry among existing competitors. The report concludes that the threat of substitutes is low due to the specific charging requirements of different electric vehicles, while the threat of new entrants is also relatively low due to high investment costs. The bargaining power of buyers is moderate due to limited trustworthy options, whereas the bargaining power of suppliers is high due to licensing. Finally, the report notes increasing rivalry among manufacturers like Tesla, Volkswagen, and BMW. The report highlights the growing importance of wireless charging systems for vehicle operators and the need for companies to focus on the automotive market.

PORTER forces-wireless
charger for electric vehicles

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Threat of Substitutes...................................................................................................................1
Threat of new entrances..............................................................................................................1
Bargaining power of buyers........................................................................................................1
Bargaining power of suppliers....................................................................................................2
Rivalry.........................................................................................................................................2
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Porter Five forces model can be applied to know various elements related to threats,
bargaining powers and existing rivalry. The model can be applicable to any organization or
products. The report will design and apply Porter Five Force Model for wireless chargers for
electric cars. Wireless charging systems are the innovative discovery for facilitating electric
vehicles. There are number of factors related to it that can be assessed by Porter's Five Forces
Model.
MAIN BODY
Threat of Substitutes
Threat of substitutes are low as different electric vehicles uses different charging systems
suitable to its battery system and requirements (Tavakoli and Pantic, 2018). The products of
“Qualcomm Halo” cannot be replaced by Formula race cars. Similarly, “Plugless” company
design its wireless charging systems for specified electric vehicles only. This is one of the issues
related to the wireless charging modules that restricts customers to opt for another substitute.
Threat of new entrances
New and advanced electric chargers are being manufactured according to the internal
system of electric vehicles. This has provided sufficient options to users for opting and exploring
variant options. So the threat for new entrance will be comparatively low as need for investment
is high which means that it require higher amount of money to be invested for production of
wireless car charging devices (Ismail, 2017). So probably the threat of any new comers into
market with the product like that of wireless charger for electric vehicle is low only. But as
mentioned the wireless charger in car will be working same as that of wireless phone charger so
the existing manufactures could introduce them as well into market.
Bargaining power of buyers
Though there are number of manufacturers developing chargers for EV, but still buyers
do not have enough trustworthy or tested options. Therefore, bargaining power in terms of
charging electric vehicle persists at moderate level (Hardman, Kinnear and Plötz, 2018). The
customers are opting for best quality of product as the demand for the same is meant to increase
in near future. It was also determined by manufacturers that the consumers are also ready to pay
premium price for the product.
1

Bargaining power of suppliers
Bargaining power of suppliers of EV chargers is high due to their licenses (Global
Wireless Charging Market for Electric Vehicles, 2019). The suppliers licensed by WiTricity have
high level of bargaining options with respect to other existing manufacturers. Thus, Wirecless
charging systems' developers have high level of bargaining power due to low number of
authentic manufacturers.
Rivalry
For various EV chargers manufacturing companies like Tesla, Volkswagen and BMW
will be having innovative technologies for the same (Wireless electric vehicle charging. 2019).
As the usage of these type of application will be from industrial to military consumer and
company need to focus on automotive market only.
CONCLUSION
The report has summarized that usage of wireless charging systems have been increasing
rapidly as it provides high support to vehicle operators and saves flow of capitals as well. There
are number of discoveries in field of wireless charging systems but the customers are confined
with fixed suppliers.
2

REFERENCES
Books and Journals
Hardman, S., Kinnear, N. and Plötz, P., 2018. A review of consumer preferences of and
interactions with electric vehicle charging infrastructure. Transportation Research
Part D: Transport and Environment. 62. pp.508-523.
Ismail, A., 2017. Mindblowing innovation on the new BMW 7 Series. Servamus Community-
based Safety and Security Magazine. 110(11). pp.50-51.
Tavakoli, R. and Pantic, Z., 2018. Analysis, Design, and Demonstration of a 25-kW Dynamic
Wireless Charging System for Roadway Electric Vehicles. IEEE Journal of
Emerging and Selected Topics in Power Electronics. 6(3). pp.1378-1393.
Online
Global Wireless Charging Market for Electric Vehicles. 2019. [Online]. Accessed through:
<https://www.businesswire.com/news/home/20180523005862/en/Global-
Wireless-Charging-Market-Electric-Vehicles>.
Wireless electric vehicle charging. 2019. [Online]. Accessed through:
<https://www.techradar.com/news/wireless-electric-vehicle-charging>.
3

4

5