NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03

Submission BCS

Five Vision

Submission Date & Time: 2021-11-25 11:15:09

Event Name: NMO S4 Sprint One - IIM Visakhapatnam

Solution Submitted By: Kartik Garg

Assignment Taken

Case Understanding

We are a start-up and need to define our product and create business plan for the company for coming 5 years.

BCS Solution Summary

We started with the market analysis of the EV Battery Industry and created the proposal for the fund raising for our firm “Five – Vision” which will operate in the EV Battery market and projected the how we can go ahead with the product development phase as well as the financial projection for our product and then as we grow the organization we need to hire more staff so we also elaborated on the hiring plan.

Solution

Proposal For Funding

There will be three categories for funding-

Projects 1: Solar Home Systems

Solar Home Systems (SHS) are provided with an affordable payment plan via established payment means (ie. mobile phones), comprehensive customer service and innovative remote monitoring technology, including after sales services and maintenance.

(D)ESCOs offer low- to medium-income customers in SSA, including in remote areas, a clean and affordable alternative to unhealthy, environmentally harmful, and expensive fossil fuels.

Private sector offers contribute to the targets of improved electrification while in some countries of the Target Regions the market develops very quickly at this stage and capital is highly needed for expansion.

Projects 2: Green Mini-Grids

Companies that offer project 2 type transactions install, operate, and maintain photovoltaic (PV) based Mini-grids to sell energy services in rural communities.

Their technologies and processes enable companies to incrementally match generation capacity with increasing consumer demand - effectively "growing" supply with consumption - in a commercially viable, efficient, and operationally scalable manner.

Projects 3: Green industrial energy supply and selected on-grid projects

Companies in project 3 categories typically provide modular, transportable, often rented photovoltaic farms for hybridization of diesel generators in frontier markets, deployed in containers or are small independent power producers with typical sizes of 1-10 MW either as a captive power plant for industrial use or installations feeding into the national electricity grid.

Companies offer remote small and medium enterprises (SMEs) and communities competitively-priced scalable solar power, integrated intelligently with diesel generators, without up-front investment, on flexible rental contracts.

 

 

Market Entry:

Market entry strategy will be based on non-equity mode via Licensing. As a very young company and lack of funds, company should license the resources it needs. The distribution can also be given to third party, I.e., it can be outsourced to reduce costs and extra burden on company. Contracts can be signed with courier companies to facilitate distribution. For brand building, we will have to make the product extremely efficient. We will require to post ads of the product to build the brand image. As a start-up, using digital media to promote the brand will be cost-efficient. The advertisements could be made available on google by SEO. The brand image will be set up in a way to promote our idea of clean energy.

Hiring and Training plan:

As the company is young and is focusing on making EV batteries, the operating core of the company becomes that of skilled labor. So, to expand in coming year and expecting sales of about 100000 units, we will need up to 20 workers, 2 more management heads to supervise the process with technical background and 1 trainer to skill the labor. The salaries would be kept at par with the market and for retention of employees, employees will get better health benefits and insurance plans from the company other than retirement planning.

Product development plan:

Identify a product concept then seek market feedback about the product & the idea then create a prototype of the product then prepare marketing, sales messages, and materials then build the product then test the product then release the product in the market then analyze usage & feedback & adjust the product accordingly.

 

Decide on Features (USP’s) which will be present in the vehicle and how those features will help sales

Our USP is a battery, after a single charge, we can drive around 750 km. So, it is a unique feature & also it saves people time exponentially. We easily promote this feature and it will help our market to grow more.

 

 

Market Analysis of Electric vehicles:

Porters Five Forces:

Barriers to entry:

  • High number of barriers
  • High investment in production lines
  • High expertise in automotive business is required to invest efficiently
  • Less margin on final products

Bargaining power of buyers:

  • Customers have low switching cost which increase the power of the buyers
  • Brand loyalty can help to mitigate the power of buyers

Bargaining power of suppliers:

  • Foreign suppliers have more power than the domestic supplier
  • Battery suppliers are missing in current EV ecosystem in India
  • Limited localization

Threat of substitute:

  • Various alternatives are there like buses, metro, train, planes etc
  • Total cost of Ownership for EV is currently high
  • Less comfortable

Threat of Rivalry:

  • This is high since major players are entering this market
  • Aggressive investment by new players
  • Fierce competition

 

 

Operating Plan:

We will be setting up the battery assembly plant which is required in the manufacturing of EV, since 50-60% cost comprises of battery and by setting up a domestic battery plant in India will reduce the cost of battery by 20-30%.

So, for that we will initially import the battery cells from USA and then setting up the manufacturing plant for assembling.

It will cost around 50 Lakh for setting up the Assembly unit and rest amount will be used to import the raw material, We can take advantage of the PLI scheme provided by the Indian Government.

Conclusion
We finally come to the conclusion to set up a assembly unit for the Electric Vehicle Battery which will reduce the final cost of the product and meet the 2030 deadline.
Attached File Details
Video
https://www.youtube.com/watch?v=s6aUCQdq8yQ

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Article Type: Business Case Scenario, Case Study Solution Submission
Business Case Detail
Title: NMO S4 SPRINT ONE | BUSINESS CASE SCENARIO - 03
Type: Case Study
Stream: Management

Tags: food industry, developing a business case for food industry, business case, scenario analysis, business case solution, food industry, management learning, public business case, business case example and solution, business case structure, management olympiad, management competition, business case competition, case study competition, virtual company, business simulation, online management competition

Participant

Kartik Garg

Leadership









The Famous Five

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