Business Development Idea For Vehicle Charging Station
The objective of this individual assessment submission is to learn how to develop your own business idea, complemented by research and observational insights that detail why the need is compelling. Please submit a 1500-word business report of your idea, a detailed business model (BM) canvas, discussion of the interrelationships among the BM components that are essential to success, critical risks and assumptions, and overall feasibility. The business model canvas must be discussed in the report and included as an appendix.
The assessment criteria are detailed below.
1. Effective explanation of the customer/market problem that needs solving and/or the reason the innovation is required. (15%)
2. Persuasive argument of the customer/client benefits to be generated by the idea (10%)
3. Discussion of the proposed business model (15%)
4. Identification and discussion of the key interrelationships in the BM that will support success of the idea (10%)
5. Critical success factors to be managed during execution of the idea (15%)
6. Identification of critical risks and assumptions (10%)
7. Evaluation of the overall feasibility of the idea (15%)
8. Quality of written submission, minimum 6 peer-reviewed journals, and APA referencing format (10%).
The present business development idea is taken into consideration due to the number of vehicles is increasing continuously on the road. Thus, there is an increase in demand for fuels. More the dependence on fossil fuels more is pollution. Thus, an alternative can be used by making use of electricity to run cars. The cars powered by electricity will require charging points at regular intervals. This report studies the concept of the development of the charging stations for electric cars.
The benefits that the customers may receive are studied. The associated risk in the process and the underlying assumptions are taken into consideration. The overall feasibility of the business development idea is studied as well.
The business idea is studied in the background of the Business Canvas Model. The key factors of the model along with the relationship that they share among themselves are studied.
The report makes an analysis regarding the business development idea of the establishment of charging points for vehicles that run on electricity. There are various underlying problems and requirements which can lead to the success of the business development idea. The conversion from the use of fossil fuels to electricity as fuel will give a boost to this idea. The benefits that the customers may receive along with the associated risks and assumptions of this idea are analysed. The business model associated with the business development idea along with the interrelationship between the key points is also taken into consideration. The various success factors behind this process and the overall feasibility of the business development idea are studies as well.
Customer Demand, Market Problem and other Reason behind the Innovation Requirement
Vehicles are increasing in number day by day. But the world is heading towards heavy pollution and the fast depletion of the fossil fuels is calling for suitable alternatives. Thus, there is an immediate requirement for the shift in the type of fuels used for vehicles. Instead of fossil fuels, electricity can prove to be effective for the running of the vehicles. When the vehicles run on electricity, there will be a dire need for charging stations that can provide battery charging facilities for the vehicles running on the road. Therefore, a business plan to set up a Vehicle Charging Station can prove to be successful in the near future when the business development idea of electric cars becomes popular. The problems related to the scarcity of fossil fuels and excessive carbon emission can be coped up to a certain extent by the introduction and popularisation of the concept of electric cars. Thus, not only the idea will be earning profit but make a prominent footprint with the aim of healing Mother Nature (Holmberg & Erdemir, 2019). So these can be considered as some of the needs for the generation of the innovative business development idea of setting up charging stations. The vehicles can be charged at these points and can run smoothly on roads.
Customer Benefits from the Vehicle Charging Stations
The sole business development idea of a vehicle charging station depends on the popularisation of the idea of cars running on electricity. Electricity when used as fuel for vehicles can prove to bring a significant reduction in the emission of carbon dioxide and carbon monoxide. The reduction in carbon footprint will help in providing the users of electric cars better and pollution-free surroundings. The development of vehicle charging stations will provide customers with a sustainable lifestyle (Mattila, 2019). Even future generations will be benefitted from it.
Proposed Business Model and the relationship between the key factors
The business development idea in this case takes into consideration the development of various points where electricity run vehicles can charge when they deplete out of charge. Thus, customer service plays an important role in this business.
- Segment of customers: The development of the charging stations for vehicles can target the customers adapting to the business development idea of using electricity run cars. The vehicles can charge their batteries as and when required from the charging points.
- Key partners: The development of the charging points solely depends on the provider of electricity. Electricity can be generated from coal or even other renewable sources like solar energy or wind energy. Thus, there arises the requirement of maintaining a positive relationship with these partners.
- Value proposition: The effective service level of the staff serving the customers will have immense power in creating value for the company (McLeay, Yoganathan, Osburg & Pandit, 2018). The availability of the resources or electricity to be served to the customers can also develop a name for the company.
- Key activities: The major activities associated with the vehicle charging station lies in the development of the points at appropriate places which can fulfil customer needs. Providing proper service to the customers and procurement of electricity are the various activities that have to be taken care of.
- Channel: The stations or charging points are the main channels where the customers come in contact with the company. The product or the electricity that the organisation plans to provide to its customers is channelized to the customers through these stations.
- Revenue stream: The organisation can collect its revenues from the customers at the point of contact that is at the charging stations. The revenue can be drawn from the customers as and when they are provided with service. Proper service level can help in maximising profit for the organisation.
- Cost structure: The key areas which undertake costs are the procurement areas. The Development and effective maintenance of the service stations also involves a huge initial cost. The costs have to be properly taken into consideration which has to be ultimately recovered from the revenues that are collected from the customers.
- Key resources: The innovative business development idea has to go through a procedure of research and development. They act as a key asset for the organisation who will be involved in the continuous development procedure. The providers of raw materials and the staffs who will serve the customers are the key resources for the organisation.
- Customer relationship: Relationship that any organisation shares with its customers helps in the growth of the business and maintaining long-term success in the industry (Bongaerts, Kwiatkowski & König, 2017). In this case the better the level of service provided to the customers, the stronger the bond will be. It will help in creating a name for the brand and increase faith among its customers.
Key interrelationships in the proposed BM:
Business ideas are always backed by certain business models (Augenstein & Fleig, 2017). It is important to understand the key factors that affect the business and the existing relationship between them. Through proper channel and customer segmentation, the company can build up customer relationships in order to maintain the company’s value proposition. Key resources, cost structure and key activities also influence the revenue stream accordingly.
Critical success factors to be managed during execution
There can be various aspects, the effective management of which can lead to a prolonged success of the business development idea of the development of vehicle charging stations. The charging points have to be developed in such a way that it is user friendly and customers can place their vehicles suitably for charging (Glazebrook & Newman, 2018). The staffs at the charging stations have to be trained in such a way that they can confidently guide the customers and help them out. The relationship with the suppliers of electricity has too strong. This will help the organisation to develop their partners in business and help in achieving long term profits.
What are the critical risks and assumptions for business development idea?
Every business development idea has some critical risks and certain in-built assumptions. Similarly, when the idea of a vehicle charging station is comparatively innovative and new, it also has certain associated risks.
The concept of electricity run cars is new to society. Thus, there always lies the risk of how customers adapt to the idea of these new cars. The scarcity of a continuous supply of electricity can pose a huge threat to the new business development idea (Walzel, Sturm, Fabian & Hirz, 2016). The battery structure of the cars can also be a possible threat if not compatible with the charging points.
The basic assumption of the concept of charging points is that the customers will shift their consumption from cars running on fossil fuels to electricity run cars. The shift of the demand from fossil fuels to electricity has to be huge. It is the only way by which the initial investments can be recovered within a short time frame.
Feasibility of the Product
The business development idea of the charging points for the electricity run cars is feasible. Proper research activities can help in realisation of the concept. Since there is a huge possibility of customers start using electricity run cars, there will be an increasing need for the charging points for the cars. The stations can be easily developed at suitable positions where the customers can easily access and bring their cars for charging. The distribution channel has to be made effectively. The staffs can be trained accordingly to provide service to the customers. The availability of raw materials or electricity can be ensured by electricity providers and building a strong relationship with them (Sierra Rodriguez et al., 2019). Thus, all these aspects can help in making the overall concept feasible. This concept will provide a better environment for not only the present generation but also the successors as well. With the effective utilisation of the electricity run cars, there can be a considerable reduction in the carbon footprint which can in turn help in reducing pollution. This will thus help in sustainable development.
In this report, the concept of the innovative business development idea of developing charging points for the cars running on electricity is studied. The concept is relatively new thus making it necessary to analyse what can be the probable risks in the business. In addition to that, the positive side is also considered that is the benefits that can be achieved from its development. The business development idea is studied in the background of the Business Canvas Model. The key factors of the model along with the relationship that they share among themselves are studied. Since the idea is new it has to be taken into consideration whether the business development idea is feasible. The report also analyses the same.
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