No Essay Example | Topics and Well Written Essays - 3000 words - 2

No - Essay Example Competitive rivalry The competition in the automobile industry is relatively high since the companies have flooded the market thus offering customers’ a number of choices. This high competition result to companies earning low profits since the costs of the entire competition will also be high. Moreover, Better Places will face competition from other energy producers such since they all struggle to occupy a stable position in the market. A number of oil companies have linked with major car producers across the globe whereby they make lots of profits are being made. Threat from new competitors The industry dealing with hybrid electric vehicles is stable and well established. It has maintained a significant average annual growth for many years. Thus, the potential level of threat from the new competitors is categorized as medium. This is because competition in this industry is already high hence it is quite discouraging for the new companies that are struggling to get into the ma rket. However, one of the largest threats is from the new competitors that are environmentally conscious in their lines of production. Threat from consumers Consumption begins with wholesalers and retailers who demand lower pricing for the products. Large retailing businesses sell the product to many users whereas internet marketers or retailers cover a broader region in terms of sales. All these customers opt for Better Place’s Auto’s product because of its convenient price and distribution. However, the demand for low pricing is a major threat for the company since raw materials and other production costs are too high in the car manufacturing industry. Threat from suppliers of raw materials As the trend of car fashions change from time to time, there is need for quality and modern products from the vehicle industry. Thus, for Better Place to maintain its position in the market, it should maintain its good relationship with suppliers since the prices of raw materials are fluctuating in the industry. This would enable the firm to acquire the relevant materials for its production at reasonable prices, or else, when the relationship is poor, the company would have some difficulty obtaining the raw materials for production. Threat from close substitutes Most likely, competitors who are coming up with similar products that are environmental friendly are a greater threat to Better Place. It is expected that all the products from the company would outplay products from other companies with unparalleled quality and uniqueness. A Company such as Honda Motors is among the oldest manufacturers in the car industry thus products from such company can pose a threat to the company’s products because of the famous name. Customers consider product differentiation since there are so many vehicles in the industry with the same features hence there is little threat from substitutes. 2. Scenario Planning Scenario planning enables a firm to describe what is ea sy and possible to attain over a specific time frame. It permits specification of particular objectives which are supposed to be attained in a sequence of both investment and implementation decisions. It therefore helps a firm to plan for the entire project regardless of the obstacles that might come along the way. The following steps are depicted in the Better Place plan: Identification of Stakeholders The company identified stakeholders whose interests were similar to the founders’