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Case

The War for Rechargeable Electric-Vehicle Batteries

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In 2014, most industry experts thought that the electric-vehicle (EV) battery market was an important opportunity for battery manufacturers, which would also restructure the traditional car industry. Despite this rosy EV-battery picture, the reality was not so optimistic. Many competitors, such as Samsung SDI, LG Chemical, and Panasonic, were already in the market, which caused battery prices to decline. Ominous examples forced companies already in the industry (“incumbents”) to rethink and perhaps revamp their EV-battery market value-chain strategy.

The incumbents had to define sustainable courses of action as they faced numerous risks and complexities. They had to make strategic choices to overcome the industry's huge uncertainties and obstacles. It was critical to take into account conditions and constraints in resources, processes, capabilities, as well as the macro- and micro-economic environments.

Learning Objective:

To learn:
- How an innovative product changes the entire value chain.
- How a company can cope with a fundamental upheaval in the market.
- Which factors and/or forces the company must take into account when designing its action plan, and how.

Year of Publication: 2015
Ref. No.: 14/547C
Discipline: Production & Operations Management, Strategy & General Management
Industry: Automobiles & Components
Country: Korea (Rep. of), Japan
Company: .
Languages: English
Pages of Text: 28