Hejin Ahn

Mimoun Cadosch

Kelsey Hilbrich

Edward Lando

Andy Maheshwari

Sydney Weber

https://www.youtube.com/watch?v=VR3oLV4fdcE&list=UUoxw9H_MiQVsaOlpkbppw3Q&index=6

Hallmarks of Disruptive Innovation

• Better Place disrupts the Electric Vehicle space with:

– Swappable-battery technology

• Increases driving range

• Separates car from battery ownership

– In-car software • Manages energy needs

• Better Place democratizes the electric car, which before was too expensive for most of the population by charging a lower TCO

Better Place’s Disruptive Business Model

• Better Place’s car is competitively priced– i.e. The cheapest of all EVs are as expensive as our premium model

• Gasoline Stations are replaced with Swap Stations

$13,678 $17,137

$11,543 $8,332

$0

$10,000

$20,000

$30,000

$40,000

$50,000

Average Car* Better Place Car

Tax Credit

Repairs

Maintenance

Insurance

Fuel

Financing

Taxes & Fees

Depreciation

Better Place affords 2% - 10% savings compared with popular 2012 vehicles

*Average of several popular vehicles in 2012

Better Place expected to sell 100,000 cars in Israel by 2016…

As of today, they’ve sold 750.

That’s 0.75%.

The Downside of Disruptive Innovation

Demand

The “Chicken and Egg” Problem

Infrastructure

SolutionsInternal• Stability

– Management consistency will increase internal & external stakeholder confidence

• Structure

– First, adopt product structure in Israel (e.g. IT, HR, etc)

– Ultimately, adopt a matrix structure with regional adaptations (Sales & Marketing, Infrastructure Set-Up)

External• Stimulating Demand

1. Periphery: Partnerships with automakers (Renault)

2. Periphery: Partnerships across other verticals (Zappos)

3. Core: Customers and NGOs advocate for tax and sales credits from government

• Subsidizing Infrastructure

– Reducing business model costs (integration, distribution of financial risk, etc.)

Why Globalize?

(1) Disrupt the Industry

(2) Derive Competitive Advantage

Switchable-BatteryElectric Car

Fixed Battery Electric Car

Plug-in Hybrid

Affordability ✓ ✗ ✗

Resale Value ✓ ✗ ✗

Emissions ✓ ✓ ✗

Range ✓ ✗ ✓

Running Costs ✓ ✓ ✓

Benefits of Globalization

1. First Mover’s Advantage: setting the standard for the Universal Plug

2. Partnerships with Globally-scaled Automakers: scale of brand name

We propose a

Three-Pronged Global Rollout Plan

How to Globalize?

Phase I: Israel & Denmark

Local Responsiveness

Glo

bal

Inte

grat

ion

PRODUCT MATRIX

INTERNATIONAL DIVISIONS AREA

External:1. Establish partnerships with Mazda and Hyundai2. Establish partnerships with corporations that lease cars to employees3. Reengage government support

Internal:

Phase II: Belgium & Netherlands

Cultural Administrative Geographic Economic

• Liberal democracies• Interest in environment

• Administratively efficient • Guarantee of Contract and law enforcement • Governmental involvement in environmental issues

• Relatively close to Denmark• Good base for rest of Europe

• Advanced economies with high GDP/Capita: early adopters for Electric Vehicles

Method of entry: Sole venture

Potential Future Challenges: (1) Gaining support of governments (2) Consumer demand

Phase III: Western Europe, US, Australia

Method of entry: Partnerships with other EV companies Ex] US entry: Better Place could partner with Tesla or Fisker

Potential Issues: (1) The size of these markets will require substantial

investments in infrastructure(2) Better Place has already tried to enter the United States

and Australia and therefore may suffer bias

Step One: Solve the “Chicken and Egg” problem

1. Stimulate Demand

2. Subsidize Infrastructure

Step Two: The Global Rollout Plan

1. Phase I: Israel and Denmark prove viability of the company

2. Phase II: Belgium and Netherlands are the next closest CAGE counterparts for expansion

3. Phase III: Western Europe, US, and Australia are potentially large sources of demand but require substantial infrastructure investment

Takeaways

Let’s make this world a