INTERNATIONAL ISLAMIC

UNIVERSITY ISLAMABAD
BBA 37 A

Name:
Tahreem Mudassar
Aimen Mushtaq
Aleena Ijaz
Aleena Sajjid
Sarah Ifthikhar
Anmol Zahra

Company Analysis
5-Oct-2020
 Product Information:
Product Name:

Electronic Bikes

Company:

Aima Technology Group Co,LTD.

Country :

China

Product Cost:

2500Yuan & 60,500Rs

Project:

Importing Electronic Bikes fron China

 Company Analysis:
Porter’s 5 Forces:

Bargaining Power of Suppliers:

In terms of supplier bargaining power, through analysis this can be established as low due to
several reasons.The switching cost of buyer is high.As for the electronic bikes there are small
numbers of supplier for Pakistan.Switching cost of the supplier is low because there are
competitors of aima company.And if do not like there terms we can have terms with other
companies.

Bargaining Power of Buyer:

The Product is highly differential in Pakistan.Switching cost is high because no any competitor
in Pakistan is Producing or Delivring such product.In Pakistan customers are unable to get
similar product from any other source so Bargaining power of buyer is low.

Threat of New entrants :

Threat Of new Entrants is low.Becausr in Pakistan’s Market there no any company before who is
offering such product so customers will be loyal to us.And if any new company wants to entere
in the market it need high initial capital investment.

Thread of substitute - low

 The substitute of Electronic Bikes in the Pakistani market is only electric scooties.
 The impact of substitute on the market is beginning to fade, but the Electronics Bikes has
on as such substitute in the market.so it’s good for our business.
Intensity of Rivalry - low

 Competitive rival of Electronic Bikes is less in Pakistan

 No substitute is available in Pakistani market.
 Therefore , No substitute in market as it
 Increases the profit of electronic bikes
 Fast growth of electronic bikes.
 PESTEL analysis of Pakistan
Pakistan and China has excellent diplomatic and trade relationship. The Chinese Premier sees the
relationship between the two countries as unbreakable and rock-solid. PESTEL analysis of
Pakistan aims to explore some of the political, economic, social, technological, environmental,
and legal factors affecting Pakistan today. 

 Pakistan has made significant progress in science and technology over the years. Thus allowing
imports of electric bikes from China. As for political, demands of imports of e bikes increase,
resulting to increase of duties and taxes. E bike prices also doubled, surpassing the price of
engine bike. E bikes are encouraged to use because it is environmental friendly. It had the
potential to halve the country's automobile petrol consumption that would lessen air pollution.
Since it is environmental friendly, government appeals to exempt duties and taxes so that e bike
price will come down. E bikes does not also required a license so everyone is allowed to use as
long as they know to drive it. Another technology added to Pakistan list that would help improve
their economy through increasing demands of e bikes.

Social factor:

Pakistan is the 5th most populous country in the world. As of March 2020, the total population is
approximately 219 million. The major religion is Islam and a small percentage of population
follows Christianity and Hinduism. The major languages are English, Urdu, Punjabi, Sindhi,
Pashto, and Balochi (BBC, 2019).
 Fashions and taste
 Increased desirability of Customized cars
 Consumer Attitude
Economic factors affecting Pakistan
  Rise in inflation E bikes manufacturers to increase their prices
 As motorbikes are imported, the Exchange rate should effect 
 Increase in income level
 Interest Rate also affects car prices
 Increase in Imports

Political factors affecting Pakistan

 Government imposes limit on the number of parts to be imported
 Legislations require locally made parts to be international standards compliant
 Fluctuations of exchange rates & oil prices
 Foreign ownership regulations and technological cooperation’s with other
governments
Technological:

 Electronically Controlled
 Electric hybrid and Hydrogen-powered fuel 
 New technologies lead to growth in the sales figure.
 Consumer satisfaction
Environmental:
 encouraged to use because it is environmental friendly
 It had the potential to halve the country's automobile petrol consumption that
would lessen air pollution

Legal:

 Business law protects companies from unfair competitions.

 Legislation protects the interests of society
 Law to protect consumers from unfair business practices.
 At present vehicle imports are subject to six ‘fixed’ taxes
 Ports Authority Levy (PAL) of 5%,
 Nation Building Tax (NBT) of 3%,
 Social Responsibility Levy (SRL) of 1.5%,
 Road and Infrastructure Development Levy (RIDL) of 2.5%,
 Value Added Tax (VAT) of 20%
 Customs Import Duty (CID)
 Excise Duty

SWOT Analysis:
Strengths:

S Stands for the strength of our product (Electric Bikes) from a brand named AIMA
TECHNOLOGY GROUP CO. LTD located in China, which we are importing to Pakistan as it
seems like our country’s people are in need of those specific electric bikes because petrol has
become much expensive that’s the major reason we are launching these electric bikes in
Pakistan.

These are the strong points:

1) AIMA’s Electric bikes are famous for its innovative features. As their goal on being ahead
of its competition is by introducing some of the most innovative Electric bikes in the market has
proven to be a successful business strategy which is their main strength and a major advantage.
2) Their initiatives, especially in producing environmental friendly electric bikes technologies,
vehicle safety and information technology, provide it with some of the best strategic advantages
and specific features.
3) AIMA’S Huge, efficient R&D (research and development) spending has allowed itself to gain
a competitive edge over its competitors ie ( luyuan and yadi) to become one of the largest
automotive manufacturers in the world by researching and introducing the leading-edge
technology and especially Electric bikes to the consumers. While in Pakistan We don’t have any
competitors who manufacture E-bikes.

4) AIMA give consumers the choice to either have it powered through Lithium or Lead-Acid
batteries. Each E-bike has a range of 20-45 km on one charge and takes about 6-7 hours to fully
charge the bike. AIMA is called the market leader for a reason.
The other two companies are called its follower and niche player as they are following AIMA’S
tech business ideas and procedures.
5) Specialty of our brand’s E-bikes is that they are; Foldable and light weighed. People can fold
and keep them safe near their office’s garage also they can carry in it in the backseats of their
cars, it can be used by all ages of people in Pakistan.
6) Our brand AIMA has very low cost. One E-bike is of 60,000. RS
People of Pakistan can easily afford this bike as it is fulfilling the need and solving the issue of
daily petrol consumption which has become a critical problem in Pakistan.
7) Quality is good and the cost is low. People of Pakistan prefers products more like these.

Weakness:

W stands for the weaknesses in swot analysis.

1) They are somehow still pricy, battery has a short lifespan because people in Pakistan are lazy
they feel uneasy they don’t want to visit the battery shops often.
2) Battery charge time is long. Emergency can occur any time what will the person do if his/her
mother got sick how he will travel on the spot if the E-bike is on charging.
3) Riding range remains low if the battery is a little low.
4) Maintenance and repairs are costly.
5) AIMA tech E-bikes have less resale value, people cannot stand this in Pakistan.
6) They don’t have their APP from where people could have known the prices and the
information about the E-bikes ranges. So, they should think about this.

Opportunities:

O stands for the opportunities:

1) Aima Tech our brand company has this benefit that we don’t have a competitor in Pakistan.
Only are Launching E-bikes in the market in Pakistan this way we can grow and become more
success as we are the leader in the market.
2) As petrol is expensive in Pakistan, people will prefer E-bikes. We have this opportunity to
attract the Pakistani people by giving 2 batteries as gift in purchasing process that’s called right
price to performance strategy with the help of it many people will purchase.
3) By launching these E-bikes we have an opportunity to reduce control over foreign trade and
investment. That’s why costs will be relatively low.
4) We have the opportunity to normalize this E-bike culture for all ages of people in Pakistan.

T stands for the threats which we can face:

1) AIMA tech should improve its battery quality and limit, which will help to charge it quickly
as right now it is the leader market even in Pakistan but the threat is that new entrants are on its
way, they will follow their ideas AIMA tech should keep looking for the new business strategies
to be in the spotlight.
2) Now as E-Bikes are launching in Pakistan for the first time, people can create fake word of
mouth like its heavy because it’s electric without even trying.
So, AIMA tech should use an IMC (Integrated Marketing Communication) Strategy in order to
avoid any type of miss-conception and to give the E-bike users the Clear message

3) Aima tech have chance of fewer financial resources than other bike companies which are not
electric but they tend to have full financial resources to manufacture and support the customers
services.