No Essay Example | Topics and Well Written Essays - 3000 words - 1

No - Essay Example However, with very few EV cars, the switching cost is relatively low since there are not EV car producers in the world. Better Place also included product differentiation in its endeavours. In the car industry, normally there are numerous cars that are similar. For instance, someone can easily locate a very similar Nissan, Toyota, Mazda or Honda. Nevertheless, if they are looking at amphibious vehicles, then Better Place faces little threat of substitute products or services, which can be considered an extreme example (Etzion & Struben, 2011). Bargaining Power of Customers There are primarily two types of markets that Better Place competes in; the market for outputs, in which the firm sells its products to consumers and the market for inputs, in which the firm buys components, raw materials and financial, as well as labour services (Etzion & Struben, 2011). These transactions establish value for both sellers and buyers in both markets. With regards to the output markets, Better Place experiences the bargaining power of customers whereas, in the input markets, the company experiences the bargaining power of its suppliers. This bargaining power of customers explains how tough the client’s attitude, as well as their position is (Etzion & Struben, 2011). Bargaining Power of Suppliers Suppliers can put to practice their bargaining power through increases prices or dropping the quality of products. Materials such as raw materials or labour are vital to Better Place’s existence (Etzion & Struben, 2011). Therefore, Better Place has developed a dependant relationship with its suppliers. However, such suppliers can take more Better Place’s likely industry potential value if they are more powerful. This can make Better Place’s profitability drop if they cannot transfer the greater costs incurred to their clients. Such suppliers seem to be more powerful because Better Place is a single company. However, if Better Place was composed of a number o f firms, then the suppliers would be less powerful (Etzion & Struben, 2011). Intensity of Competitive Rivalry In the world EV market, the number of developed competitors is over 50, but Better Place is the first of its kind in Israel. Nevertheless, since diverse firm’s product ranges, product positioning, as well as target consumer groups, are fairly diverse and the volume of EVs that are launched are limited, in comparison with the traditional automotive industry, the competitive strength of EV in Israel is fairly low (Etzion & Struben, 2011). However, established competitors around the world can be split into four clusters according to their capital scale, production capacity, product ranger, as well as operation pattern. They can also be large firms or small firms according to their capital size (Etzion & Struben, 2011). Scenario Planning Better Place’s business models could be simply summarised as they buy car batteries, as well as electricity and offer miles, on t he other hand (Etzion & Struben