The Electric Vehicle Revolution: a real innovation or a temporary trend?

Abstract

The object of this thesis is to analyze the automotive industry and the role of the electric car innovation inside it. More in depth, this project want to underline that this phenomenon, which is widely described and discussed both in international universities and in specialized magazines, will be not only a temporary trend (like could be the hydrogen car, for example) but a real opportunity of innovation and a break with the past both for firms (from an organizational point of view) and for consumers. To write this thesis I would adopt mainly secondary data taken from academic articles, specialized reviews and websites, and management’ books. However, I would also implement a survey in order to gain some data that will be useful in order to analyze the possible reactions and behaviors of costumers regarding electric vehicles. I will start the thesis by analyzing the whole automotive sector, especially focusing on the most important features and firms/groups that made this industry one of the most important and influent in the entire world economy: business models, market strategies, distribution strategies, supply chain management and marketing strategies. I will analyze the trends of the whole automotive industry in the last few years and the structure of the three continental automotive market in the world, providing examples of classical producers (OEMs) strategies and ways of production. In the first chapter there will be also a room for the role that innovation plays in this industry and the ways through which the innovation can be transmitted, protected and implemented in this sector. After this first part, I want to examine the new phenomenon of the “electric car”. I want to illustrate how it functions, the technology that we can find behind this innovation and the different types of vehicle that we can find when discussing about electric cars: hybrid (HEV), plug-in hybrid (PHEV), and pure electric (BEV). For each kind of these models I will provide some examples clarifying how does they function and what are the benefits and the problematics for the customer and the impact on the society. Moreover I will analyze the electric car segment from an economical and strategical point of view. I will study the partnerships that are born in these years in order to develop this kind of innovation, the ways through which this innovation can be protected, the new distribution strategies (Tesla store, for example) and their evolutions; and, finally, I will provide a customer perception of the electric car thanks to a personal survey (to be made). The last part of this thesis intend to analyze three famous different case studies about electric cars. The first, and most famous, case study is about Tesla Motors. The second case study is about FCA Group, and why they are so reluctant, in this first moment, to the implementation of the electric revolution. The third case study is about Toyota’s Groups (hybrid models, a strategy started about ten years ago).