Thesis influence market on strategy FEV

Tilburg University

Tilburg School of Economics and Management

Bachelor Thesis
First supervisor: Dr. G. van der Laan

Corporate strategy analysis of the electric automobile industry

Thesis by
Theresia Rosalia Antonia de Jongh
S765035

In Partial Fulfillment of the Requirements for the Bachelor’s Degree of International Business Administration

Submitted January 16, 2015
Table of Contents
Chapter 1. Introduction 3
Problem indication 3
Problem statement and research questions 4
Electric vehicles 4
Electric vehicles in the Netherlands 5
Chapter 2. Theoretical framework: Corporate Strategy 6
Models to explore macro environment of an industry 6
PESTEL 6
Porter’s five forces 7
Corporate Strategy 8
Chapter 3. Methodology 11
Chapter 4. Analysis 12
Industry analysis 12
PESTEL analysis 13
Porter’s Five Forces of electric vehicle industry 16
Industry Strategy Analysis 16
Full electric vehicle strategy analysis in the Netherlands 17
Corporate strategy Tesla 18
Corporate strategy Nissan Motor Company 18
Corporate strategy Renault Group 19
Corporate strategy Daimler AG 19
Corporate strategy BMW AG 19
Semi-electric vehicle strategies in the Netherlands 21
Corporate strategy Mitsubishi Motors 22
Corporate strategy Volvo Car Corporation 22
Corporate strategy General Motors 22
Corporate strategy Toyota Motors 23
Chapter 5. Conclusion, discussion, limitations and further research 25
Conclusion and discussion 25
Limitations and further research 25
References 27

Chapter 1. Introduction

Problem indication

Petrol and gas prices are rising (Sadek, 2012) and highly fluctuating due to scarcity of fossil fuels (Kotler, 2011) and great tension in the world (zfacts, 2014). Fortunately, there are several solutions, at least for the automobile industry. Liquid petroleum gas, compressed natural gas, biofuels are cheap and more environmentally friendly alternatives but find themselves still in the fossil fuels sector, thus victim to scarcity issues. Hydrogen is very

References: Andrews, K. (1997). The Concept of Corporate Strategy. Resources, Firms, and Strategies: a reader in the resource-based perspective. Ansoff, H ANWB. (2014, 10). Alternatieve Brandstoffen. Retrieved from Elektrisch rijden: http://www.anwb.nl/auto/themas/elektrisch-rijden/alternatieve-brandstoffen Ashtiani, C., Cullen, G., Davis, P., Greenwald, J., Hardigan, P., Eladio, K., Zimmerman, D BMW AG (2014, 11 11). Company portrait. Retrieved from: http://www.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com/unternehmen/unternehmensprofil/strategie/strategie.html Brandenburger, A., Nalebuff, B., (1996) Co-optition CGMA (2014). Porter’s Five Forces. Retrieved from: http://www.cgma.org/Resources/Tools/essential-tools/Pages/porters-five-forces.aspx?TestCookiesEnabled=redirect Daimler AG (2014, 11 11) Delucchi, M. A., & Lipman, T. E. (2001). An analysis of the retail and lifecycle cost of battery-powered electric vehicles. Transportation Research Part D: Transport and Environment, 6(6), 371-404 De Reuver, M., Bouwman, H., & Maclnnes, I Eberhard, M., & Tarpenning, M. (2006). The 21st century electric car. Report, Tesla Motors. Egelhoff, W. G. (1988). Strategy and structure in multinational corporations: A revision of the stopford and wells model. Strat. Mgmt. J., 9:1–14. Finlay, P Freyssenet, M. (2009). The Second Automobile Revolution. Trajectories of the World Carmakers in the 21st century, Basingstoke and New York: Palgrave Macmillan Frost, Sullivan, (2013) Fuel-efficient-vehicles.org, (2008). TESLA Roadster | Fuel-Efficient-Vehicles.org. Retrieved from: http://fuel-efficient-vehicles.org/energy-news/?page_id=52 General Motors (2014) General Motors (2014) Goold, M., Campbell, A., & Alexander, M. (1994). Corporate-level strategy: Creating value in the multibusiness company. New York: J. Wiley Hambrick, D Hardester, E. (2010). The profitability of the electric car (Thesis). Brigham Young University Hedley, B Johnson, G., Scholes, K., & Whittington, R. (2008). Exploring corporate strategy: text & cases. Pearson Education. Kley, F., Lerch, C., & Dallinger, D Kolios, A., & Read, G. (2013). A Political, Economic, Social, Technology, Legal and Environmental (PESTLE) Approach for Risk Identification of the Tidal Industry in the United Kingdom. Energies, 6(10), 5023-5045 Kotler, P Lynch, R. (2009). Strategic management. England: Pearson Education Limited. Mangram, M. E. (2012). The globalization of tesla motors: a strategic marketing plan analysis. Routledge, 20(4), 289-312 Mitsubishi Motors (2014) Muller, J. (2013). The Real Reason Tesla Is Still Alive (And Other Green Car Companies Aren 't). Forbes. Retrieved from: http://www.forbes.com/sites/joannmuller/2013/05/11/the-real-reason-tesla-is-still-alive-and-other-green-car-companies-arent/ Musk, E NASDAQ.com, (2014). TSLA Income Statement. Retrieved from: http://www.nasdaq.com/symbol/tsla/financials?query=income-statement Nicholas Groom, R Nissan Global (2014). Nissan’s Core Values. Retrieved from: http://www.nissan-global.com/EN/TECHNOLOGY/NISSAN/VALUE/ Patel, H., & Aalok, V Pingfang, Z., & Weimin, X. (2003). On The Impact of Government 's S&T Incentive Policy on the R&D input and its patent output of large and medium-sized Industrial enterprises in Shanghai [J]. Economic Research Journal, 6, 45-53 Pontes, J Porter, M. (2003). MICHAEL PORTER (1947-). Fifty Key Figures in Management, 272. Porter, M. E. (1987). From competitive advantage to corporate strategy (Vol. 59). Cambridge, MA: Harvard Business Review. Porter, M. E. (1979). How competitive forces shape strategy (pp. 21-38). Boston: Harvard Business Review. PWC (2014). Megatrends driving the automotive industry. Retrieved from: http://www.pwc.com/gx/en/automotive/issues-trends/megatrends-driving-the-automotive-industry.jhtml Ramsey, M Renault Group Strategy (2014). Group strategy. Retrieved from: http://www.renault.co.uk/about/renault_group/group-strategy/ Renault-Nissan (2014) http://www.nissan-global.com/EN/COMPANY/PROFILE/ALLIANCE/RENAULT01/index.html RVO (2014) RVO (2014). Financiële ondersteuning elektrisch rijden. Retrieved from: http://www.rvo.nl/onderwerpen/duurzaam-ondernemen/energie-en-milieu-innovaties/elektrisch-rijden/aan-de-slag/financiele-ondersteuning RVO (2014) RVO (2011). Plan van aanpak 2011-2015: Elektrisch rijden in de versnelling. Retrieved from: http://www.rvo.nl/sites/default/files/bijlagen/Plan%20van%20aanpak%20-elektrisch%20rijden%20in%20de%20versnelling-.pdf Sadek, N