Google's Strategic Approach to Electric Automobile Industry Penetration

As we have focused on the major 5 forces which basically decide profitability of electronic automobile industry, it seems this industry is lucrative enough. Moreover, we should make sure we can capture market share of this industry as quick as possible, before the other major companies get into it. In order to do this, it is highly recommended to make proper competitive scope.

Industry

It is true that means of transports are indispensable. However, as time passes by, environmental concern is getting crucial because of significant gas emission ,which causes serious global issues, from conventional means of transports ,and many environmental agencies are alrerting the current situation. Moreover, there are many customers demanding eco-friendly means of transports in order to preempt these issues, so we ,Google, want to accept requests and provide convenient service for them. The electronic automobile could be the most appropriate way to overcome environmental issues as it allows the reduction of local air pollution, and do not emit any harmful pollutants. It is also notable that it is profitable as the demands of Electronic Vehicles(EV) are increasing. Below graph shows the growth of EV salesIt definitely shows the demand of EV keeps raising annually and proves how attractive this industry is.

We also want to provide different kinds of services granted to EV such as Google Assistant, so any customer will be able to ask EVs various questions during driving. It could be asking what place is the best to drive, where to drive to avoid traffic, or any other interesting driving issues. Our major goal is to provide the alternative of conventional automobile and at the end, the unmanned vehicle fueled by electricity.

Segment

It is expectable that our main customers will be the one who mainly concerns environmental issues - green customers. In general, they commit greener lifestyle which follows deciding more eco-freindly options to protect environment, so whenever they purchase certain products, they usually do substantial research whether these products are not harmful to environment. So it is very recommended to advertise how effective our EVs could influence the environment.

Green customers who are already satisfied with standard of living are usually less price sensitive as they have less difficulties in living compared to customers in developing coustries, what it means that the most of them are distributed in developed countries. Additionally, their greener lifestlye with relatively wealthy background is liable to purchase eco products regardless of price.

One more fact is that many green customers are young and influenced by education and social media or even by their parents. It is also strongly believed that teens and children will gradually have more concern on environments. They are even more knowledgeable about these issues, and also increaslingly affecting the buying habits of their parents to buy alternatives. As they are highly likely to be our customers in the near future ,so we need to keep eyes widely open to them.

Vertical Integration

Google is well-known as the supplier who provides versatile technological services based on searching engine, but it is true that we have lack of knowledge and experience on the field of electronic automobile industry. That is why, we are under consideration to take over particular companies who are potential exports ,and it will be also great if they are entrepreneurs who could be our exclusive partner. In order to manufacture one electronic automobile, it requires many components. Among components, we are planning to vertically integrate especially companies which specifically produce electric motor, battery, motor controller in order to manufacture it by Google itself, and the rest of them will be outsourced.

Firstly, there are many EV battery manufacturers such as Panasonic, LG Chem, and so on. The majority of EV battery produced by Panasonic having one of the biggest production capacity is almost purchased and used by Tesla. How about LG Chem? It also gains the most revenue by selling the EV battery to Chevrolet, Hyundai, Ford Mortor, Volvo, and etc. It seems in large part of upscale EV battery manufaturers are already selling to major competitors. Thus, it is better to more focus on small companies established recently. One of them is XING Mobility established in 2015 by Azizi Tucker who were former NASA and Tesla engineer and PEVO and XRANGE Architects, Royce YC Hong in Taiwan. XING Mobility is a private company where is specialized to manufacture EV battery and electric vehicle powertrain. Additionally, XING Mobility has special experience assembling their own electric super cars (Miss E, Miss R). Therefore, it seems very affordable and attractive.

Secondly, motor controllers and electric vehicle motors are also provided by many companies and among them, we selected chinese company called V&T Technology which was founded in 2006. This company already exported their products to over 60 countries and it verifies how sufficient exportise they have. It could be too expensive to afford this company, but we strongly believed that it is worthy enough to accept takeover risk.

Geographic

As it was mentioned above, our main target will be the green customers and majority of them commonly live in developed countries as their basic neccessities have been achieved, and eventually they are highly likely to confront environmental issues, and thus most sales are expected in developed countries.

Below graph shows the sales of EV by different countries (BEV=battery electric vehicles, PHEV Plug-in Hybrid Electric Vehicles)

Most of sales occured in Europe, and here will can recognize how they are willing to have EV. Moreover, try to think about how many cars nowadays on roads! These conventional cars have significant possitiblity to be altered into EV especially in developed countries.