Case Study: Electric Vehicle reverse innovation in China
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1. Watch the video "Michael Porter , Innovation & Competitiveness ( 1of 2), GCF 2011 - 01 -25." ( https://youtu.be/NZt6kUKE-88) Consider what you learned from this video when you answer the questions below.
Indigenous Reverse Innovation from the Base of the Pyramid
1. From a resource-based view, what are some of the outstanding capabilities that EV producers in China have? Why is it that their larger competitors (incumbents) in China do not have such capabilities?
2. From an institution-based view, why are domestic incumbents in China—in collaboration with global heavyweights—interested in leveraging their influence on the Chinese government to heighten entry barriers for EV producers?
3. Given that some EV producers from China's BoP can penetrate the U.S. market, what are some of the lessons from indigenous reverse innovation in the era of globalization?
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Solution Summary
A case study of small electric vehicle makers and their reverse innovation in China is discussed in a structured manner in this response. The related references are also provided.
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In compliance with BrainMass rules, this is not a hand in the ready assignment but is only guidance. Please do not copy and paste any part of my response
1. From the resource point of view, the EV makers of China have great entrepreneurial drive, have penetrated the US market, and have large capacities to make many vehicles (1). The small EV makers of China have access to low-cost labor in rural China, they also have access to cheap raw materials including batteries in rural China, and they have to access cheap land that can be used to make large factories that make EV cars. The BoP businesses must provide small packages (cars), have low margins per unit, and have a high volume of production (2). Moreover, because of their access to low-cost building materials and land, their capital requirement is lower than that of big manufacturers located in major cities of China. Let us consider the example of access to low-cost batteries suitable for EVs. Currently, out of 142 lithium-ion battery large factories under construction worldwide, 107 are in China, whereas only 9 are in the USA. This figure appears in a report released by Securing America's Future ...
Education
- BSc , University of Calcutta
- MBA, Eastern Institute for Integrated Learning in Management
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