Business Model Innovation by Better Place: A Green Ecosystem for the Mass Adoption of Electric Cars
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Case Code: BSTR378 Case Length: 22 Pages Period: 2007-2009 Pub Date: 2010 Teaching Note: Available |
Price: Rs.500 Organization: Better Place Industry: Auto and Ancillaries Countries: Global Themes: Business Model Innovation, Social Entrepreneurship, Electric Cars |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Better Place's Business Model
The aim of Agassi's innovative ecosystem for electric cars was to facilitate mass adoption of this cleaner technology by consumers by making it more affordable and convenient to own as well as operate an electric car. In this disruptive business model, consumers could sign up with Better Place for subscription plans under which they had to use a certain number of miles a month for a certain number of years. In turn, they received an electric car on lease...
Global Presence
A favorable regulatory environment was a pre-requisite for this business model to be successful in any geographic region. This could be in terms of funds for setting up the smart grid, tax incentives to the various partners in the Better Place ecosystem, and tax incentives to consumers who subscribed to the electric car transportation services of Better Place. The company entered into agreements with two densely populated but small countries -- Israel and Denmark, and a sparsely populated big country -- Australia...
Challenges to the Business Model
The Better Place business model faced many challenges in terms of consumer preferences, market suitability, competitors/substitutes, and the threat of technology changes. Analysts said it was likely that consumers who had got used to the luxury provided by big, ICE-powered automobiles and their various features, would not be too impressed by the electric cars that would operate in the Better Place ecosystem...
Future of the Industry and the Business Model
Faced with depleting reserves of fossil fuels, volatility in the price of crude oil, and increasing concerns about environmental pollution and greenhouse gas emissions, the global automotive industry was gradually moving toward electricity as the source of power for automobiles, at least in a hybrid form...
Exhibits
Exhibit I: Worldwide Total Oil Consumption by Various Sectors
Exhibit II: Projection of CO2 Emissions Worldwide
Exhibit III: Coulomb Technologies Inc. - A Simpler Business Model
Exhibit IV: Developments in the US Market for Electric Cars
Exhibit V: BYD Auto and the Market for Electric Cars - Global Ambitions, Nurtured in China
Exhibit VI: Controlling Climate Change - The Roles of Government and Business
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