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ZAP and the Electric Vehicle Industry
Introduction
“ZAP stands for Zero Air Pollution” (www.lahiji.com). ZAP focuses on production of vehicles that run on electric power, keeping the environment in mind. ... Although the economy is not too friendly to manufacturers and retailers now, ZAP can achieve success with proper management of its strengths and opportunities in the market. The following analysis covers the overall industry of EV (electric vehicles), Zap and its position in it, and recommendations for its future strategies.
Analysis of Industry
The electric vehicles industry is very broad in scope (from military equipment to toys for children), which means that any new idea can find its place with fairly low competition overall. In ZAP’s case, the idea was good because until 1994, not many people knew about this opportunity in the market and it was a great way to succeed for Starr and his new company. ... The barriers now are much higher due to higher interest for the products from customers and an increased number of companies in this industry.
Unfortunately for ZAP, the EV industry has many substitutes, especially in the focus that this company has. ... The presence of substitutes in the industry is a threat for the company (Strickland, Thomson 87, 88). Right now, “the largest segment of the individual transportation industry belongs to the bicycle industry” (Strickland, Thomson C-107). ...
Competition in the EV industry is growing now as well as the number of acquisitions. ... ZAP took advantage of this and conducted several acquisitions itself (ZAP acquired EV Systems, CA; Aquatic Propulsion Technology, Inc. ...
Differentiation in the EV industry started to grow with the growth of the interest in it from the customer side. Right now, ZAP is in the top ten of the industry (next to EV Rider, Bikit, Schwinn, etc. ... In 2000, compared to the sales of electric bicycles in the United States, the sales elsewhere in the world were much higher. This presents a great opportunity for ZAP, but also means a high competition possibility. (Tables C-111)
Many manufacturers in the EV industry sell their products through the Internet, of which many are publicly traded. ... ZAP is not an exception. ZAP started to use the Internet in 1997. ...
Globalization is a growing trend in the EV industry. ... ZAP took advantage of this opportunity and now produces its products in Taiwan, China, etc. ... Manufacturers in the EV industry need mainly steel, rubber and plastic in their production. All these industries are highly developed and there are many suppliers for the EV industry, which means that the suppliers do not have high control over their customers because it would be very easy to switch the suppliers, should not the conditions work for the manufacturer. (www. ... com; www. ... com; www. ... com) The power of buyers in the EV industry is high because they can go to the cheapest producer since there are so many now. ... In 2001, ZAP came up with new electric motor device ZapAdapt, which may be attached to manual wheelchairs. ... ZAP has 14 patents, which is good for legal protection from infringers. ... Compared to 1995, in 2000, ZAP became more liquid (table c-101). In addition, in 2003, ZAP’s cash got even lower, which is great for liquidity and so did their inventories, which lowered costs (http://finance. ... com). ... The public became more aware of ZAP in 2000, at the Olympics in Sydney, but also through American sitcoms, TV commercials and news (www. ... com). ... ZAP reduced its cost through moving its production to Taiwan and with this money saved, it could focus more on distribution improvements
7. In 2001, ZAP had over 100 independent retail outlets, which drew more customers in. ... “Currently, low-speed electric bikes are regulated by the National Highway Traffic Safety Administration (NHTSA), which subjects these bicycles to the same standards as motor vehicles” (www.lahiji.com). This was a great opportunity of which ZAP took advantage and it became its strength. ... ) were also thought to be major attractions to prospective consumer of electric bikes” (Strickland, Thomson C-109). All this conditions suited ZAP and it turned them into its strength. ... Starr said that “… [ZAP] needs to continue to be a pioneer and a leader in the [EV] industry” (Strickland, Thomson C-102), and right now, the company is present in more than 60 countries. ... As the company states itself, ZAP is environmentally friendly, saves money, saves time, helps the economy, combats global warming, and most of all, it is fun (www.
Approximate Word count = 3612
Approximate Pages = 14.4
(250 words per page double spaced)
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