Business Model Innovation by Better Place: A Green Ecosystem for the Mass Adoption of Electric Cars
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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.
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...
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