[Challenge:Future] Embracing Endogenous Sources of Innovation: eMobility in Poland
1. Embracing Endogenous Sources of
Innovation: eMobility in Poland
TEAM NAME: PARAGON
TEAM MEMBER/LEADER: JAMES YAN
MASSACHUSETTS, USA
HARVARD UNIVERSITY EXTENSION SCHOOL
2. Recap: First Round
To maintain economic competitiveness in the next decade, Eastern
Europe must progress toward an innovation-driven, knowledge-based
economy
Envisioned future companies in EE must develop innovative business
models and create products with clearly identifiable unique selling
propositions (eliminate the stereotype that EE is merely an
“outsourcing backyard”)
EE countries should change in the following ways: strive for at least 3%
of national GDP devoted to R&D, raise tertiary enrollment rates to at
least 40% of the population, promote greater market competition,
encourage the growth of venture capital to finance new business
ventures
Most promising EE industries identified in Round 1 include: energy
and clean-tech, IT and telecoms, pharmaceuticals and healthcare (all
are considered high-tech industries)
3. My Vision - Establish a specialized electric vehicle (EV )
company in Poland
Why eMobility (electric mobility)?
• Scarcity of fossil fuels and rising oil prices signal that before
long eMobility will become a strategic necessity
• Positive externalities: reduction in greenhouse gas
emissions, reduced noise pollution, less oil dependency
• Frost and Sullivan predicts that the increasing demand for
convenient, eco-efficient EV’s will prompt the EV market in
EE to grow by 151% between now and 2017 and even more
after that.
• A conspicuous absence of domestic EV producers in
Poland means that my visionary company will benefit from
first-mover advantage; currently, foreign-produced EV
imports are very expensive (exceeding $30,000 USD) and
are beyond the reach of the average Polish citizen
Why Poland?
• The establishment of an EV company makes full use of Poland’s
strengths – allowing well-educated scientists to innovate in the
clean-tech industry while preserving the country’s cost-
competitive manufacturing base. The product is a high-quality PISA Education Rankings: Poland
EV at an affordable price. ranks above Germany and the United
• Large domestic market with a population of nearly 40 million States (indicating a very well-educated
Polish labor force)
4. Multistakeholder Analysis
The stakeholders are the relevant individuals, companies, or organizations that play a pivotal role
in determining the outcome of my vision. I have identified three major stakeholders. Engagement
with each of these stakeholders is paramount for my vision to come to fruition.
Charging station providers: From the perspective of an EV manufacturer, the availability of
charging stations is of the utmost importance. The presence of a dense charging point
infrastructure is absolutely critical. EV drivers need to feel secure that they will not be left out in
the cold when their battery is low – they want to see as many charging stations as possible in
both public spaces and residential areas. The greater the number of charging stations, the
higher the demand for EV’s in Poland.
Government/municipalities: National and local governments can support EV companies
by outlining a clear long term eMobility strategy. Actions from the government include
subsidies for EV buyers and tax breaks for EV companies. EV companies are likely to thrive in
an environment where the government co-finances private R&D. For example, in 2011, the
Polish government provided 5 million EUR to the Mielec Regional Development Agency for
R&D in battery technology.
EV buyers: The key is to develop an effective marketing and sales strategy that will generate
greater public awareness for EV’s in Poland. Public awareness is critical, especially among the
young, eco-conscious, urban population. After all, it is the consumers who ultimately determine
the success or failure of a company. If consumers are not aware of the benefits of EV’s, they are
unlikely to buy one. An aggressive promotional “pull strategy” must be implemented to
stimulate buyer demand. Leveraging social media sites as an advertising platform may prove to
be a useful marketing strategy.
(My interviews with these stakeholders are described in detail in my project report.)
5. Timeline of Vision
Between 2013 – 2017, the main focus should be on R&D and generating public interest. A
strategic partnership with charging station providers should be formed. Senior company
executives should politely pressure government officials to implement eMobility-friendly
legislation as soon as possible. Marketing and Sales must also leverage the online platform
to develop an omni-channel sales strategy. At this point, battery technology is not yet
mature enough to allow for a dramatic reduction in selling price – the limited number of
EV’s is therefore geared toward affluent urban residents in Poland’s largest cities.
Attracting a few “lighthouse customers,” such as mayors or prominent politicians, would
greatly enhance the company’s image.
Between 2018 – 2022, the main focus should be on rapidly gaining and consolidating
market share. At this stage, battery technology will have likely matured to the point where
large reductions in selling price would be possible, enabling the EV to reach the general
public. Depending on market demand, limited quantities may be exported to neighboring
countries with relatively high purchasing power: Czech Republic, Slovakia. Economies of
scale are achieved.
After 2022, the main focus should be on profit maximization and continuous optimization.
By this stage the company will be a thriving business. Even though new competitors may
emerge, they will be put at a significant disadvantage since it is extremely difficult to win
market shares over established players at later stages.