Better Place Company Essay Examples

Q1
A competitive advantage for a company is the game plan that management comes up with to secure market share or a competitive advantage. The company adopted a lower cost provider strategy by providing alternative car model, which is $5,000 less than fuel car in the US market. This was a strategy to counter fuel car manufacturers. The business could not have impacted if the prices of electric car were same as fuel cars. The company further employed a strategy of partnering with electric car providers with an aim of edging out competitors within the electric car battery service providers. The low cost provider was a better strategy since consumers like to have products that are of low cost but high quality services. The benefits of this strategy can be realized when the company sold 70,000 electric of the 100,000 cars ordered.
Q2
Better Place Company utilized the innovation strategies that other countries are putting in place. Many other countries were adopting the electric car technology in order to get rid of the fuel car environmental issues. The company sought to benefit from such innovations by integrating its technological services to the upcoming markets. The company wanted to position itself as pioneer battery service providers as those countries rollout the electric car project. This move is referred to as innovation arbitrage. Different countries have their own regulations, labour cost and specialized services. The company wanted to model its business into a focused factory model since it has infrastructure intensive project, having talented workforce like the Japanese labour force ensures that the big solutions to challenging business start up is successful.
Q3
Partnership is a well known strategy not only for firms to go together on the market but as a competitive strategy. The company will benefit from innovation, financial performance, increase sales and satisfy customers. The key factors that can result into the above benefits include the quality of partnership, value creation and collaborative innovation. Innovation is a benefit that partnered firms gain when they combine their human resource especial the experts. They experts can develop a unique product on the market hence gaining competitive advantage. If the two companies can have a partnership that encourages innovation, then it is a exciting partnership. It is also crucial to note that trust and quality of information exchange is extremely beneficial in such relationships. Looking at the partnership on a resource-based view shows that the two companies will benefit. The car manufacturing company has the capacity to manufacture cars while battery services for the cars can be provided by Better Place Company. Entrepreneurs are people who identify, acquire and accumulate resources with an aim of taking advantage of the perceived opportunities.
The car manufacturing company runs a risk of losing customers who do not like services from Better Place Company. They may also have their own preferences. This means that it will lose its clients to other electric car manufacturers. These alternative companies may not restrict them on the battery charging services of their cars. On the other hand, other car manufacturers may not recommend Batter Place Company to their buyers since they have partnered with their competitor. If one partner does not want to offer services or provide information as agreed in the terms and conditions, innovation will not take place. This means that they will have a small customer share on the market. This shows that the disadvantage outweighs the advantages in this partnership for the companies involved.
Q4.
Renault Nissan wanted to invest $500 to $1 million in the project of setting up swappable-battery electric cars. Renault Nissan is just one electric car manufacturing company venturing into such partnership. It will give it a competitive advantage since their products will be readily available to consumers. Consumers will not have to worry about the next recharge area where they are going to spend time. This is because they will be able to swap their batteries. The company has an opportunity to overcome protectionist barriers. Partnering with a company from another country helps is breaking barriers easier than when it was a foreign company. The host country will be more willing to honor the deal between the two companies hence drops some of the protection issues. The risks of project failure are shared among the partners.
However, it will be a disadvantage since Better Place Company will also have different swappable batteries from other car manufacturing companies who have not invested in the project of creating the stations.
Q5
Better Place Company has its networks in many countries. It has also partnered with key players in the electric car industry. Acquiring the company will be a better chance for Chrysler to be a success in the global market for electric cars. The danger, however, lies with the bankruptcy state the company is in right now. There have been wrangles within the top management of the company occasioned by firing of the CEO of the company. This has left the future of the company hanging on the balance. The reputation and image of the company are damage by the uncertainty in the top management.
Having such issues will value the company at a lower price. Since the infrastructure is already in place if the acquiring company injects a reasonable amount to the business then they stand a chance of succeeding. The chances of Chrysler succeeding in the market depend on how they can redeem the image of Batter Place Company and confidence of the investors.
Q6
Adaptation-Aggregation-Arbitrage dimension is a better angle for business since it has experience in launching its products in many countries. Many countries are coming up with innovation where electric car is not an expectation. Hence, the company can do well in innovation arbitrage with an improvement on the business level strategy since they will acquire more market share. Brute force model will be useful in creating business presence in international markets. Countries such as China and India have massive population where talented people came be employed at lower rates. The company should use more of the local experts than importing them from other countries such a move will reduce cost of production.
Q7
The top management team should be able to set policies that suit well with a given country. Business practices in one country may not be replicated in another country due to CAGE issues. Conducting surveys and partnering with the local business will be the additional insights that Better Place Company needs to succeed. Distance of products to a given market means increased cost and higher prices of the products. Geographical issues can be taken care of by setting up swappable-battery stations using local materials.