Strategic Management Analysis Based on Case Study Essay

Strategic Management Analysis Based on Case Study - Essay Example This mechanism gets rid of greenhouse gas emission from the vehicle’s engine. For this purpose, Better Place strives to create a global market for electric cars. In order to fulfill its mission of making automobile industry independent of oil consumption, Better Place focuses on re-engineering its car’s model instead of re-engineering the battery. This is in contrast to PSA which is a European automobile firm. PSA’s focus, under the chairmanship of Jacques Calvet, was on using different batteries like cadmium-nickel batteries or lithium-ion batteries to improve the functioning of electric cars so as to capture the commercial market. Their attempts failed to yield positive results (Freyssenet, 2009, p.252). Better Place’s mission is to make electric cars convenient in every way, and also to make them affordable for commercial customers. Vision Shai Agassi opened his company Better Place with the vision to make the world a better place. For this, his goal wa s to reduce or eliminate a country’s dependence on oil consumption especially with regard to transportation. He was known as an environmental visionary, and although his dream seemed apparently not practical, he was however determined to make a world that will not be relying on oil (Better Place: Charging into the Future? 2010, p.1). The company’s vision is to become one of the most valuable automotive companies in the world. For this the need is to design and manufacture electric vehicles in economic and user friendly manner so as to attract the most loyal customers of the industry. Stakeholders Better Place strives to hold a valuable place for its suppliers and dealers by becoming their most profitable business partner. For employees, the company intends to provide a safe, sound and motivational workplace. For investors, the company strives to become a long term and sustainable profitable venture. Finally, the company’s loyalty lies with its loyal and enthusia stic customers who expect continuous growth and improvement in everything the company does including designing of the cars to durability to after service after sale. For this, Better Place promotes technologies that are most convenient for customers. According to Better Place smart grids which are reliable and safe technologies for charging and billing of EVs â€Å"reduce CO? by charging EVs intelligently and at the same time making it easy for EV owners to charge vehicles during off-peak hours† (European Strategy...., 2010, pp.2-3). Power/interest grid for stakeholders High Power Keep satisfied Shareholders Car manufacturer Government officials Banks Manage closely Customers Insurance company Employees Suppliers and dealers Low Power Monitor Public authorities Automotive supplier Infrastructure supplier Keep informed Road operator Service provider II. Industry and Scenario Analysis Bargaining power of buyers In order to understand the standing of Better Place in the automobi le industry, it is necessary to study the Porter’s five forces analysis. The electric cars are seen as solution to vehicle induced air pollution. However, there are many drawbacks attached to electric cars like limited mobility and speed, need of charging battery failure of which can cause power disruption, costlier than conventional cars etc (Cheron & Zins, 1996, p.1). The buyers have little advantage regarding electric cars, since they do not have the option to switch between multiple brands.