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Electric Vehicle Swot Analysis

Essay by   •  April 24, 2018  •  Case Study  •  1,940 Words (8 Pages)  •  839 Views

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SWOT analysis

SWOT analysis is valuable tool that is used to assess the internal and external position of a company (Chen, 2014). The assessment of Alseta’s strengths, weakness, opportunities and threats is shown in Exhibit.

Strengths

Strong brand image and customer loyalty

Strong focus on R&D

Customer Service

Rapid innovation capabilities

A strong brand image can be a strong factor that affects people’s purchasing decision. Electric vehicle is relatively at an early stage of development and consumers do not have a comprehensive cognition of electric vehicles at this stage. A strong focus on R&D enables Alseta to design and manufacture the electric vehicles that consumers are satisfied with. A solid customer service like the establishment of supercharge stations around the world stimulates customers to purchase electric vehicles. Alseta also has rapid innovation capabilities in terms of its goals that change human’s life from gas fueled to electric powered vehicles. Alseta has a good performance on leveraging its strengths to improve its brand image which can ultimately lead to an increase in market share.  

Weakness

A lack of global supply chain

Premium pricing compared to competitors due to greater quality of products

(and customer service)

Lose some markets in the countries which have short sunlight time (or countries which have a longer time of winter than summer like Canada, Russia and so on)

However, there are some weakness that need to be improved by Alseta. Since Alseta only procure the solar panels and lithium batteries from the local suppliers, it may lose the benefits of global supply chain. Higher prices are charged by Alseta to consumers because it has high fees on R&D and customer services. In addition, Alseta would lose the markets in countries which have short sunlight time or the length of winter is long like Canada in terms of the concept of solar panels. This weakness could be the bottleneck for Alseta to expand its electric vehicle market in some countries.

Opportunities

Growing global market (focusing on the countries which has a high demand)

Strict policy due to the severity of environmental pollution        

Government Support

The growing global market of electric and an increased sense of environment protection offers Alseta an opportunity to increase its profitability. However, Alseta can only sell the electric vehicles to the countries with high demand as the weakness mentioned above. The enforcement of strict policies which are triggered by the serve climate change and the government support such as financial incentives can also be opportunities for Alseta to promote the use of electric vehicles.

Threats

Highly competitive market

Alseta faces many challenges as a new entrance to the electric vehicle industry although it has a long history of being a gasoline fueled company. Cost advantages can be a  reason but product differentiation is the key competitiveness in this industry. Tesla which is well know for its innovation has already release

6. SWOT

SWOT analysis is valuable tool that is used to assess the internal and external position of a company (Chen, 2014). The assessment of Alseta’s strengths, weakness, opportunities and threats is shown in Exhibit.

A strong brand image can be a strong factor that affects people’s purchasing decision. Electric vehicle is relatively at an early stage of development and consumers do not have a comprehensive cognition of electric vehicles at this stage. A strong focus on R&D enables Alseta to design and manufacture the electric vehicles that consumers are satisfied with. A solid customer service like the establishment of supercharge stations around the world stimulates customers to purchase electric vehicles. Alseta also has rapid innovation capabilities in terms of its goals that change human’s life from gas fueled to electric powered vehicles. Alseta has a good performance on leveraging its strengths to improve its brand image which can ultimately lead to an increase in market share.  

However, there are some weakness that need to be improved by Alseta. Since Alseta only procure the solar panels and lithium batteries from the local suppliers, it may lose the benefits of global supply chain. Higher prices are charged by Alseta to consumers because it has high fees on R&D and customer services. In addition, Alseta would lose the markets in countries which have short sunlight time or the length of winter is long like Canada in terms of the concept of solar panels. This weakness could be the bottleneck for Alseta to expand its electric vehicle market in some countries.

The growing global market of electric and an increased sense of environment protection offers Alseta an opportunity to increase its profitability. However, Alseta can only sell the electric vehicles to the countries with high demand as the weakness mentioned above. The enforcement of strict policies which are triggered by the serious climate change and the government support such as financial incentives can also be opportunities for Alseta to promote the use of electric vehicles.

Alseta faces many challenges as a new entrance to the electric vehicle industry although it has a long history of being a gasoline fueled company. There are just small number of competitors in this market but the products these companies are of high quality. Alseta can continuously assess its competitive environment and adjust it competitive strategies like differentiating its products by diversified batteries size with alternatives for long distance trips.

Overall, Alseta should keep seizing opportunities and leveraging its strengths to maintain a matach between the opportunities and strengths. In addition, Alseta can improve its weakness to reduce its vulnerability to the threats.

Strengths:

1. Strong brand image and customer loyalty

2. Strong focus on R&D

3. Customer Service

4. Rapid innovation capabilities

Weaknesses:

  1. A lack of global supply chain
  2. Premium pricing compared to competitors due to greater quality of products

   (and customer service)

  1. Lose some markets in the countries which have short sunlight time (or countries which have a longer time of winter than summer like Canada, Russia and so on)

Opportunities:

  1. Growing global market (focusing on the countries which has a high demand)
  2. Strict policy due to the severity of environmental pollution        
  3. Government Support

Threats:

  1. Highly competitive market
  2. A potential loss of market share

References:

Chen, W. M., Kim, H., & Yamaguchi, H. (2014). Renewable energy in eastern Asia: Renewable energy policy review and comparative SWOT analysis for promoting renewable energy in Japan, South Korea, and Taiwan. Energy Policy, 74, 319-329

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