Week 1 RESPONSE MBA 565 Discussion

CRITIQUE THE FOLLOWING ASSESSMENT OF THIS DISCUSSION RESPONSE: USING THE QUESTIONS IN RED BELOW. CITE REFERENCES.

1.) During this discussion board, I would be developing an electric vehicle (EV) that’s fully sustainable using an electric battery that’s made from recycled materials as the exterior component of the vehicle. This means that I would be focusing on the automotive industry, specifically within the electric vehicle markets. The market for this product is growing rapidly due to environmental concerns, and it's being supported by the government due to the positive impact it has on the ecosystem. Five major environmental scan forces impact the success of this product.

The first one is the technological aspect of the product. EV markets are mainly driven by advancements in battery technology, and this can impact the performance of electric vehicles in the long run. The challenge with EV batteries falls under the extended range of miles, fast charging mechanisms, competitiveness, and how reliable the battery is. “Presently, Electric Vehicle batteries are considered to have reached the End of Life once their State of Health falls to 70-80%” (Maite, 2024).

The second environmental scan is the economic aspect. The expenses of developing and maintaining electric vehicles are much higher than traditional engines because of the significant number of electrical components integrated into the battery. As more industries continue developing more EVs, it is expected that at some point, the price will likely be decreased. Taxes and the price of EVs can also vary from location and state. “Vehicle purchase price, fuel economy, and insurance cost are some of the factors that influence the decision to purchase an EV” (Simone, 2022).

The third environmental scan is the governmental aspect of EVs. The strict regulations in the reduction of internal combustion engine vehicles by the government pushes automotive industries to develop environmentally friendly vehicles like electric vehicles (EV). This is the reason why the government provides tax incentives for consumers EVs, which is a big benefit of owning this type of vehicle. Unfortunately, this effort might require the government to make some changes in its infrastructure. “Tax credits have a greater impact on EV adoption than rebates” (Maher, 2024).

The fourth environmental scan is the cultural aspect. Purchasers who are willing to invest in this type of vehicle are more conscious of the different benefits of owning electric vehicles, especially the younger generation. Unfortunately, older generations that have more expenses, infrastructure concerns, and anxiety may stick to traditional vehicles. “Socio-demographic attributes of potential adopters, such as age, gender, or income, influence the decision to obtain EV” (Chien-fei, 2020).

The last environmental scan is the competitive factor of EVs. Many highly well-known industries like Tesla, Ford, Toyota, and many more are increasing their production of EVs. To be competitive in this market, it is important to offer superior designs, unique values, and advanced technology that’s reliable and long-lasting to capture consumers' attention, which can be difficult due to the expenses involved. “Environmental factors, which include GHG emissions reduction, local air pollutant emissions reduction, and other positive externalities such as noise reduction affect the adoption of EV” (Simone, 2022).

There are two main challenges with this product. Number one is technological innovation and battery development. Ensuring highly effective battery technology that offers the longest range per mile and charging capabilities requires a significant amount of research and resources. The second is the high cost of production associated with manufacturing batteries, which could lead to fewer purchased vehicles because of the inability of consumers to afford the price. One strategy that can be useful to maintain competitiveness is the heavy investment in research and battery technology through partnerships. Partnering with battery manufacturers could ensure access to more advanced and efficient battery innovations that ensure large miles per charge. The second strategy aimed to reduce the cost of manufacturing is by exploring the use of recycled materials. This can help the company have more leverage in their production and demand for resources. This can also benefit the ecosystem.

References

Maite Etxandi-Santolaya, Lluc Canals Casals, Cristina Corchero. (2024). Extending the electric vehicle battery first life: Performance beyond the current end of life threshold . Heliyon, Volume 10, Issue 4, ISSN 2405-8440.  https://doi.org/10.1016/j.heliyon.2024.e26066 .

 Maher F. Mekky, Alan R. Collins. (2024). The Impact of state policies on electric vehicle adoption -A panel data analysis.  Renewable and Sustainable Energy Reviews, Volume 191, 114014, ISSN 1364-0321.  https://doi.org/10.1016/j.rser.2023.114014 .

 Chien-fei Chen, Gerardo Zarazua de Rubens, Lance Noel, Johannes Kester, Benjamin K. Sovacool. (2020). Assessing the socio-demographic, technical, economic, and behavioral factors of Nordic electric vehicle adoption and the influence of vehicle-to-grid preferences.  Renewable and Sustainable Energy Reviews, Volume 121, 109692, ISSN 1364-0321.  https://doi.org/10.1016/j.rser.2019.109692 . 

Simone Franzò, Alessio Nasca, Vittorio Chiesa. (2022). Factors affecting cost competitiveness of electric vehicles against alternative powertrains: A total cost of ownership-based assessment in the Italian market.  Journal of Cleaner Production, Volume 363, 132559, ISSN 0959-6526. https://doi.org/10.1016/j.jclepro.2022.132559

1. Was the product/service describing and the industry it represents.