Existing market size
- The existing market for electric and hybrid engine drive system is considerably huge.
- Hybrid cars are already in use in the United States, Europe, Canada, and many other parts of the world.
- In Netherlands, there have been an attempt to promote the use of bicycle as a way of protecting the environment.
- Most of the existing firms are yet to exploit the markets in China, India, and parts of Africa.
- These regions have an emerging middle class people who are keen on purchasing products associated with class.
Projected Market Growth
- The market for Electric and Hybrid drive system has been consistently rising.
- Environmentalists have been championing for the reduction in the consumption of petroleum products.
- Most consumers use hybrid and electric cars as a way of conserving the environment.
- Rising cost of petroleum products contributes to the growth of the market for electric engines.
Market profitability
- MSF Technologies operate 30% more efficiently,
- It is 30% lighter than others.
- It has a manufacturing cost of 20% less than conventional cars and,
- It removes the risk created when using rare earth materials from the global supply chain.
- That the technology cuts the production costs by 20 per cent.
- The technology will increase the profitability of the firm in the market.
Route to market
- Route to market is a highly powerful and effective methodology for driving and enhancing profitable growth for organizations..
- There are different Route to Market options and they include Direct RTM, Wholesale RTM, Importer RTM, Strategic partnerships and Online RTM.
- Direct RTM is an effective method and a good choice for companies that want to establish their own distribution and market centers in a new market. Its also a good method for making personal contact with the customers.
- However, it is risky, expensive and time consuming.
- Wholesale RTM provides a good channel for producers to reach out for remote and distant markets.
- Wholesalers are likely to develop customer-company relationships in the market.
- However, it attracts low profit margins (PM).
- Importer RTM is a reliable, efficient, cheap and easy method of entering foreign markets.
- It requires minimal control over branding.
- Importers will be required to make prompt payments before they are supplied with the products.
- It is a good method because of a high number of people willing to experience new electric car technology.
- Importers are looking for companies that produce the electric engines.
- Strategic partnerships create of the most effective market entry methods for multinational organizations.
- MS Technologies Limited will apply this method in Western Europe.
- The competition between the local dealers in the electric car technology is likely to increase i.
- Online RTM is the use of the internet technology to reach out to a large market within a short time.
- Internet technologies can save time, costs and reach a wider market than other channels.
- The disadvantage of online RTM is difficulty in establishment of trust due to the fear of fraud.
- MS Technologies Limited will use this mainly for advertisement and communication with the other parties.
Potential Customers
- Robert Bosch GmbH of Stuttgart produces electrical drives for motor vehicles as well as other machineries.
- The Continental AG and the Mahle GmbH produces powertrain electronics and powertrain engineering products respectively.
- In Spain, the CIE Automotive Company produces engine and powertrain components.
- The Italian company Magneti Marelli produces powertrain transmission and systems in the country.
- The GKN of the UK is expected to roll out a number of other products that use electric engines.
- The American Axle & Mfg Holdings (USA), Delphi Automotive (USA) and Magna International (Canada) will be the initial target market.
- MS Technologies Limited will target Hyundai Mobis (Korea) and Hitachi Automotive Systems of (Japan).
Potential Partnership Options
- Equity partnership: Ensures that the two parties entering into a co-ownership business mission are entitled to a proportion of the distributable profits of the venture.
- Joint ventures: It is set for a given time through a business agreement in which two companies agree to contribute equity in selling a product and share expenses, assets as well as revenues.
- Strategic Alliance:
- It is a good method to develop a good foundation and platform for venturing the already established markets.
- It uses collaborations with the existing multinational organizations.
- The method is expected to reduce the costs and risks involved.
Triple Bottom Line
- Social value:
- MS Technologies will value the communities in which it work.
- It will respect the interests of corporate, labor and other stakeholders.
- MS Technologies will seek to create value for the stakeholders by dedicating at least 6% of its annual profits to the dividends.
- The company will ensure that the employees have a better salary, a good working place and better terms of employment than its competitors.
- The company will also dedicate at least 2% of its annual income on corporate social responsibility.
Environmental value
- MIS Technologies will do no harm to the environment.
- Instead, it will seek to produce electric motor engines that do not emit carbon into the air.
- It will advocate for an increased use of electric energy in industries and transportation sector to reduce the amount of carbon and lead in the environment.
- It will also seek to ensure that the rate of consumption of petroleum products is reduced significantly.
Social value
- Business and economic value:
- MIS Technologies will dedicate it profit to improve the wellbeing of the society.
- First, it will commit to pay taxes per the existing taxation laws of the jurisdiction involved.
- The company seeks to increase its annual profitability in order to increase the value of tax paid to the authorities every year.
- The company hopes to ensure that the authorities are supported in their quest to improve the lives of their societies.
