EVX Electric Vehicle Business Plan: Innovation and Market Strategy

Introduction: The EVX Concept

The electric vehicle (EV) market has received a considerable boost in recent years, thanks in no small part to the rise of Tesla and its Model 3. However, while Tesla is essentially a luxury EV manufacturer and most other automakers in the sector are approaching EV design with a tendency towards luxury over affordability, the idea behind this venture is to provide a cheap, high-quality EV to consumers that is practical, appealing, and safe.

Considering that internal combustion engine (ICE) cars have reached a plateau in terms of how much further they can advance, and that EVs from Tesla, VW, Porsche, and other firms are all targeting the luxury consumer market, there is room for an innovative EV concept that will transform the entire industry — just as the first automobile transformed the horse-and-buggy industry. This idea aims to be disruptive.

The product will be called the EVX. The design is for a collapsible, lightweight, portable EV with a detachable battery — small enough to fit in a briefcase or purse — that can be charged at home, at the workplace, or at any standard outlet. The design will be patented and will appeal to consumers who have tired of the endless luxury EV and traditional ICE car options. The EVX will be a new form of transportation with extraordinarily low energy consumption costs: a no-frills, cost-cutting concept available new to consumers for under £5,000. As Trout and Rivkin (2006) point out, a producer must differentiate or die — and that is precisely what this innovative idea aims to do.

The Role of Entrepreneurs in Innovation

Entrepreneurs and entrepreneurship play significant roles in delivering business innovation. As Weinberger (2016) notes, "entrepreneurs are creating jobs at more than twice the rate of established companies." Entrepreneurs bring creative ideas and solutions to static or stagnant markets, inspiring consumers to try new products (Baron & Tang, 2011). However, there are mitigating factors: individual traits of the entrepreneur, "such as risk tolerance, entrepreneurial alertness, education and previous entrepreneurial experience, influence innovation in new ventures" (Fuentelsaz, Maicas, & Montero, 2018, p. 686).

Entrepreneurs must be strategic about how they approach the marketplace. Betting too heavily on a single innovation could put an entire firm at risk — which is the problem currently facing Tesla. Elon Musk, Tesla's CEO, has admitted to "betting the company" on the Model 3 (Crum, 2018), a significant risk given that Tesla was essentially competing in a niche market and that the Model 3 would need to appeal to the mass market to generate the returns the company required. So far, that has not happened.

Thinking outside the box and embracing innovative leadership styles can assist in delivering business innovation. Alternative approaches and tools for identifying, selecting, and managing emerging opportunities include assessing what the marketplace needs, what factors will influence buyers' decisions in the coming years, what geopolitical threats exist to the current way of life, and whether the upcoming generation is ready for something new. Considering the many changes taking place globally, a truly affordable EV that foregoes the frills of luxury brand models could be exactly what the market is looking for. Climate change concerns, economic anxieties — particularly regarding how Brexit will impact the UK — and numerous other pressures are weighing on the minds of younger generations, and with car prices soaring, the time is right for a genuinely new concept in transportation to emerge.

SWOT Analysis: Entrepreneur and Idea

SWOT Analysis as an Entrepreneur

My own strengths are that I can think outside the box. I have many creative ideas and solutions, and I am able to attract the right talent to help bring those ideas to life. Talented people typically need only a direction — an idea to focus on — and that satisfies their need to apply their skills to something meaningful.

The weakness I will face is securing the funding needed to attract that talent. Talented professionals know their worth and expect to be well compensated. Getting the right people on board with the concept will not be difficult, but compensating them will be, unless I can find the right investors. Considering the recent turmoil in the IPO market — with WeWork falling from a $50 billion valuation to the brink of bankruptcy in the months following the cancellation of its IPO — investors and venture capitalists may be shying away from new commitments if their primary exit strategy (the IPO) appears threatened (Trainer, 2019).

Opportunities abound, however: the market is ripe for change, change is being demanded by consumers, and there is considerable capital looking for a lucrative return on investment. The EVX represents a unique opportunity for investors to be part of a transformation in the transportation industry.

Threats include the possibility that the window for creating innovative change will close soon, as many talented minds are now exploring battery-powered vehicle opportunities. The first company to market a collapsible, no-frills EV will be credited with changing the industry. Opportunity-based theory explains how entrepreneurs identify opportunities and bring to market the products needed to propel a market to the next level (Samuelsson, 2001).

SWOT Analysis of the EVX Idea

The concept of an EV is not new, but an EV unlike anything currently on the market is. The EVX will use a collapsible, lightweight frame and chassis with a removable, portable battery that can be charged at any standard outlet. The concept is comparable to taking a dune buggy, making it street legal, and applying innovative technology so that the chassis and frame can lock into and out of position. This is the core strength of the EVX: a no-frills concept that delivers cutting-edge, low-cost, environmentally responsible transportation.

The weakness of the idea is that UK regulators may object to the concept and amend legislation regarding what constitutes a street-legal vehicle. This legislative risk exists in any industry, particularly when established players with significant lobbying power feel threatened by an innovative new entrant.

The opportunity is that the EVX can enter the market much as Red Bull did in the beverage industry — by gaining traction in niche markets and then going mainstream, blindsiding major players and capturing market share before they can mount an effective political or commercial response. If the public is already on the side of the innovative concept, it becomes much harder for legislators to act against it (Seaborn, Scott, & Miller, 2017).