MS Technologies Limited: Company Analysis Presentation

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.