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Business
Strategy
TUTORIAL
SWOT Analysis
Electri
c
car
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
o Advanced Technology
o Organization Culture
STRENGTHS
Advanced technology
Battery swap technology
Strengths
Advanced technology
Battery swap technology
Strengths
Value
Creating an enjoyable working style
Strengths
Organization Culture
Creating an enjoyable working style
Houses
Creating an enjoyable working style
Strengths
Culture
Creating an enjoyable working style
Strengths
o High input costs
o Fewer sale models
Weaknesses
High input costs
Weaknesses
o Loss $19,141 per vehicle sold
o Cost of buildings (50million)
o Investment (250 million)
Weaknesses
Fewer sale models
eT7 eT5
eS8 eS7
eS6 eC7 eC6
o Total 7 models
o Limit its appeal
o Miss out potential customers
Opportunity
o Scarcity in China
o Investors acceptance
o Wide range of product lines
o Government Support
Scarcity of Petroleum
Petroleum scarce in China
Opportunity
For the First Impression,
what do you think about these companies
as you are a buyer or an investor?
High investor acceptance
Opportunity
Use funding to support product
development and improve service
quality
Rising stock prices, promote a
virtuous cycle
Government Support
Opportunity The change of 2020 - 2022 Market Share
for EVs companies in China
Strong support from the
Chinese government for new
energy vehicles
Revenue increase from
2019 to 2021
Opportunity
87.5%
Tesla
7%
BMW
152.6%
Threats
o Highly competitive market
o Accelerated charging of new energy vehicles
Highly competitive market
Threat
Tesla sold nearly 79,000 vehicles (+145% yearly)
BYD sold 133,762 NEV passenger vehicles up over
160% yearly
Our company is quickly falling behind
strengthening competition.
Accelerated charging of new energy
vehicles
Threat
 Supercharging stations are becoming more common
 800v fast charging can reach 5 minutes of charging
and a range of 200 km
 Exchange stations are losing their advantages as a
result
Suggestions
Suggestions
Find the best location of exchange station with AI
Enhance the differentiation advantage
Enhance differentiate from traditional luxury brands like
BBA by:
 Build user-oriented luxury brand through NIO Houses, NIO
Service, and other ecosystems
 Improve product functions, scenarios and services with big
data as the guide
Conclusion
ELECTRIC CAR
Conclusion
Internal Advantages:
Unique power exchange system
Attractive Organization Culture
External Advantages:
Huge potential market
Government support
Conclusion
Disadvantages:
Highly competition
Huge input costs
Seldom sale models
Conclusion
Solutions:
Apply AI in decision making
Enhance differentiation advantages
Try to expand its sale models
Reference
Afshar, S., Macedo, P., Mohamed, F., & Disfani, V. (2021). Mobile charging stations for electric vehicles—A review. Renewable and Sustainable
Energy Reviews, 152, 111654.
Castelvecchi, D. (2021). Electric cars: the battery challenge. Nature, 596(7872), 336-339.
Electric Vehicles - China. (n.d.). Retrieved March 28, 2023, from https://www.statista.com/outlook/mmo/electric-vehicles/china
Gao, H., & Yuan, L. (2020). Research on key technology of pavement object recognition based on machine learning. Neural Computing &
Applications, 32(10), 5483–5493. https://doi.org/10.1007/s00521-019-04643-6
Gao, S. (2021). Geospatial Artificial Intelligence (geoai). Geography. https://doi.org/10.1093/obo/9780199874002-0228
Jiang, Q., Wei, W., Guan, X., & Yang, D. (2021). What increases consumers’ purchase intention of battery electric vehicles from Chinese electric
vehicle start-ups? taking Nio as an example. World Electric Vehicle Journal, 12(2), 71.
Liu, J., & Zhou, S. (2022). Analysis of china’s New Energy Vehicle Market Competitive Strategy: Taking tesla and Nio as examples. Proceedings of
the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022).
https://doi.org/10.2991/aebmr.k.220405.058
Markets, R. and. (2022, May 23). NIO automaker strategy research report - in 2022 NIO will deliver 3 new models. PR Newswire: press release
distribution, targeting, monitoring and marketing. Retrieved March 28, 2023, from https://www.prnewswire.com/news-releases/nio-automaker-
strategy-research-report---in-2022-nio-will-deliver-3-new-models-301552767.html
Najman, L. (2022, June 3). Fastest charging evs in 2022. What Are The Fastest Charging Electric Cars in 2022? Retrieved March 28, 2023, from
https://www.recurrentauto.com/research/fastest-charging-evs
Reference
Nio. (2023). Nio Service. NIO. Retrieved March 28, 2023, from https://www.nio.com/nio-service
Yang, N. (2022, March 22). China's Nev Market reports best February sales ever with 180.5% yoy surge. EqualOcean. Retrieved March 28, 2023,
from https://equalocean.com/analysis/2022032217162
Wong, K. (2023, March 27). Organizational culture: Definition, importance, and development. Achievers. Retrieved March 28, 2023, from
https://www.achievers.com/blog/organizational-culture-definition/
Wang, Y., Xia, Z., Zhang, X., & Qiu, Y. (2021). Charging and Changing Service Design of New Energy Vehicles Under the Concept of Sustainable
development—A Case Study of NIO. In Advances in Artificial Intelligence, Software and Systems Engineering: Proceedings of the AHFE 2021
Virtual Conferences on Human Factors in Software and Systems Engineering, Artificial Intelligence and Social Computing, and Energy, July
25-29, 2021, USA (pp. 477-482). Springer International Publishing.
Zhang, G. (2022). Innovation in new energy vehicles——Take NIO as an example. International Journal of Business and Management, 3(1), 21-21.
Zhang, L. (2022, December). Research on Genius Marketing Strategy from NIO. In 2022 2nd International Conference on Economic Development
and Business Culture (ICEDBC 2022) (pp. 1661-1666). Atlantis Press.

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SWOT Analysis of an Electric Car Company

  • 3. o Advanced Technology o Organization Culture STRENGTHS
  • 4. Advanced technology Battery swap technology Strengths
  • 5. Advanced technology Battery swap technology Strengths
  • 6. Value Creating an enjoyable working style Strengths Organization Culture Creating an enjoyable working style
  • 7. Houses Creating an enjoyable working style Strengths
  • 8. Culture Creating an enjoyable working style Strengths
  • 9. o High input costs o Fewer sale models Weaknesses
  • 10. High input costs Weaknesses o Loss $19,141 per vehicle sold o Cost of buildings (50million) o Investment (250 million)
  • 11. Weaknesses Fewer sale models eT7 eT5 eS8 eS7 eS6 eC7 eC6 o Total 7 models o Limit its appeal o Miss out potential customers
  • 12. Opportunity o Scarcity in China o Investors acceptance o Wide range of product lines o Government Support
  • 14. Petroleum scarce in China Opportunity
  • 15. For the First Impression, what do you think about these companies as you are a buyer or an investor?
  • 16. High investor acceptance Opportunity Use funding to support product development and improve service quality Rising stock prices, promote a virtuous cycle
  • 17. Government Support Opportunity The change of 2020 - 2022 Market Share for EVs companies in China Strong support from the Chinese government for new energy vehicles
  • 18. Revenue increase from 2019 to 2021 Opportunity 87.5% Tesla 7% BMW 152.6%
  • 19. Threats o Highly competitive market o Accelerated charging of new energy vehicles
  • 20. Highly competitive market Threat Tesla sold nearly 79,000 vehicles (+145% yearly) BYD sold 133,762 NEV passenger vehicles up over 160% yearly Our company is quickly falling behind strengthening competition.
  • 21. Accelerated charging of new energy vehicles Threat  Supercharging stations are becoming more common  800v fast charging can reach 5 minutes of charging and a range of 200 km  Exchange stations are losing their advantages as a result
  • 23. Find the best location of exchange station with AI
  • 24. Enhance the differentiation advantage Enhance differentiate from traditional luxury brands like BBA by:  Build user-oriented luxury brand through NIO Houses, NIO Service, and other ecosystems  Improve product functions, scenarios and services with big data as the guide
  • 26. Conclusion Internal Advantages: Unique power exchange system Attractive Organization Culture External Advantages: Huge potential market Government support
  • 28. Conclusion Solutions: Apply AI in decision making Enhance differentiation advantages Try to expand its sale models
  • 29. Reference Afshar, S., Macedo, P., Mohamed, F., & Disfani, V. (2021). Mobile charging stations for electric vehicles—A review. Renewable and Sustainable Energy Reviews, 152, 111654. Castelvecchi, D. (2021). Electric cars: the battery challenge. Nature, 596(7872), 336-339. Electric Vehicles - China. (n.d.). Retrieved March 28, 2023, from https://www.statista.com/outlook/mmo/electric-vehicles/china Gao, H., & Yuan, L. (2020). Research on key technology of pavement object recognition based on machine learning. Neural Computing & Applications, 32(10), 5483–5493. https://doi.org/10.1007/s00521-019-04643-6 Gao, S. (2021). Geospatial Artificial Intelligence (geoai). Geography. https://doi.org/10.1093/obo/9780199874002-0228 Jiang, Q., Wei, W., Guan, X., & Yang, D. (2021). What increases consumers’ purchase intention of battery electric vehicles from Chinese electric vehicle start-ups? taking Nio as an example. World Electric Vehicle Journal, 12(2), 71. Liu, J., & Zhou, S. (2022). Analysis of china’s New Energy Vehicle Market Competitive Strategy: Taking tesla and Nio as examples. Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022). https://doi.org/10.2991/aebmr.k.220405.058 Markets, R. and. (2022, May 23). NIO automaker strategy research report - in 2022 NIO will deliver 3 new models. PR Newswire: press release distribution, targeting, monitoring and marketing. Retrieved March 28, 2023, from https://www.prnewswire.com/news-releases/nio-automaker- strategy-research-report---in-2022-nio-will-deliver-3-new-models-301552767.html Najman, L. (2022, June 3). Fastest charging evs in 2022. What Are The Fastest Charging Electric Cars in 2022? Retrieved March 28, 2023, from https://www.recurrentauto.com/research/fastest-charging-evs
  • 30. Reference Nio. (2023). Nio Service. NIO. Retrieved March 28, 2023, from https://www.nio.com/nio-service Yang, N. (2022, March 22). China's Nev Market reports best February sales ever with 180.5% yoy surge. EqualOcean. Retrieved March 28, 2023, from https://equalocean.com/analysis/2022032217162 Wong, K. (2023, March 27). Organizational culture: Definition, importance, and development. Achievers. Retrieved March 28, 2023, from https://www.achievers.com/blog/organizational-culture-definition/ Wang, Y., Xia, Z., Zhang, X., & Qiu, Y. (2021). Charging and Changing Service Design of New Energy Vehicles Under the Concept of Sustainable development—A Case Study of NIO. In Advances in Artificial Intelligence, Software and Systems Engineering: Proceedings of the AHFE 2021 Virtual Conferences on Human Factors in Software and Systems Engineering, Artificial Intelligence and Social Computing, and Energy, July 25-29, 2021, USA (pp. 477-482). Springer International Publishing. Zhang, G. (2022). Innovation in new energy vehicles——Take NIO as an example. International Journal of Business and Management, 3(1), 21-21. Zhang, L. (2022, December). Research on Genius Marketing Strategy from NIO. In 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022) (pp. 1661-1666). Atlantis Press.

Editor's Notes

  1. NIO loses $19,141 in net profit for every vehicle sold, mainly because:  The high cost of building the NIO Houses (a single shop in Beijing costs over $50 million per year)  The total investment in research and development is more than 250 million yuan  ES6 and ES8 both being negative gross margins
  2.  NIO's limited number of models may limit its appeal to a broader range of consumers.  This may cause them to miss out on potential customers who have specific preferences or needs.