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
Organization : Better Place
Industry : Auto and Ancillaries
Countries : Global
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Automobiles contributed to a significant share of the global demand for fossil fuels (Refer to Exhibit I for the increasing share of the transportation sector in global oil consumption). The internal combustion engines (ICE) in the vehicles made use of gasoline or diesel, which were derived from petroleum...
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...
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...