Strategic Management

Case Study
On

Prod-Bike(E-Bike)
Submitted By:

Group 01 - Section D

Ankusha Patil PGP12228

Atharva Patankar PGP12260
Himanshu Goyal PGP12257
Mehta Sakshi Pankajbhai PGP12217
Mudit Sailot PGP12242
Rahul Jain PGP12256
Vanshika Sangidwar PGP12206

To

Dr. S. K. Pandey
Indian Institute of Management Rohtak

On

March 27th, 2022

 Acknowledgment

We would like to acknowledge our sincere gratitude and thanks to our Strategic Management
Professor, Dr. S.K. Pandey for his valuable suggestions, insights and handholding all through this
project work.

We are thankful to all our batchmates, friends and relatives for their invaluable help in completing
this project. Finally, we are grateful to our family members for their unstinted support and constant
encouragement.
 Letter Of Transmittal

Dr. S.K. Pandey

Professor
IIM Rohtak

Dear Prof. Pandey,

Sub: Strategic Management Report on Case- Introduction of Prod-Electric

As per the guidelines provided by you during the classroom discussion, we hereby submit a report
after going through the entire notes, teachings and scrutinizing the facts and data from various
sources. The report contains the relevant facts about the company in the introduction, the situation
analysis, choices and our recommendations.

Kindly evaluate the same and provide your valuable input.

Thanks & Regards

Group 01
 Introduction To Case

ProdBikes is a company that recently started in the EV space. It previously entered the Indian 2-
Wheeler market in 2013 and had a substantial Market share among the top leading Motorcycle
brands. By FY 2024, India’s Electric Bike market is predicted to grow to INR 17.43 billion, up
from INR 2.92 billion in FY 2019. Between FY 2020 and FY 2024 , the market is estimated to
expand at a 42.95 percent compound annual growth rate (CAGR) .
In the next decade, the number of electric vehicles (EVs) on our roads will likely rise substantially.
Readily accessible charging away from one’s home (or one’s workplace) will also be key to
supporting EV growth. Such “on-the-go” charge-ups will also need to be as easy and convenient
as refueling an internal combustion engine (ICE) vehicle today.
The significant factors impacting the growth of the electric vehicle market include government
regulations to limit environmental pollution, increase in market penetration of electric vehicles,
and surge in government initiatives for the development of electric vehicle charging infrastructure.
However, the limited number of EV charging stations, lack of standardization of EV charging, rise
in demand for luxury and feature enabled vehicles, and wireless charging for electric vehicles have
a strong impact on the market.

COMPANY BACKGROUND
Prod-Bikes is a market leader among normal 2-wheeler brands in India. It has a substantial share
among the top leading Motorcycle brands. Prod-bikes is soon to launch a new Electric scooter
named Prod-Electric with one -of-a Kind features mentioned below:
Exhibit 1

Exhibit 2
Exhibit 3

Exhibit 4
 Industry Background
The valuation of the Indian Electric Vehicle Market stands at $1434.04 billion in the year 2021
and the expected rise is $15397.19 billion by 2027, seeing a CAGR of 47.09% during the forecast
period (2022 - 2027).
The COVID-19 pandemic limited domestically produced electric vehicles due to lockdowns and
the shutdown of manufacturing facilities. However, EV witnessed optimistic growth as consumers
inclined towards affordable eco-friendly transportation supported by government incentives as the
restrictions eased.
Two-wheelers (motorbikes, scooters) and three-wheelers (autos and rickshaws) have dominated
India's automotive sector, which plays a major role in the last mile mobility in the country.
Increasing government emphasis and focus of private and government players partnership to
enhance EV ecosystem in the country. Increasing investments and product launches by significant
OEMs into the country and focusing on localizing supply chain facilities created a positive outlook
in the market.
Moreover, in India, according to the state the level of market maturity also varies depending on
factors, including income levels, demographics, regulatory landscape, and urbanization. For
instance, the state of Uttar Pradesh that has one of the lowest urbanization rates, saw significant
uptake of electric two-wheelers. On the contrary, Maharashtra with a higher urbanization rate, has
the highest penetration of electric three-wheelers and passenger cars. Delhi is home to the most
prominent electric commercial vehicle fleet due to a higher demand for electric buses and trucks.

Change In Management
ProdBike has appointed Mr. Atharva Patankar, a graduate from Indian Institute of Management
Rohtak as the CEO of the company. Mr. Atharva has a lot of experience in the EV market. He
worked with OLA electric and is known to take tough decisions for the greater good of the
company. He helped OLA to penetrate the market successfully.
At ProdBike, Atharva faces a tough challenge of taking some strategic decisions to help them
grow.

Situational Analysis
As a Strategy and Marketing Manager, you are in charge of the product launch and planning of
strategy of Prod-Electric. The aim is to make Prod-Electric leader in the EV market segment and
gain a substantial share.. The top Electric vehicle producers in India are Tata Motors, JBM Auto,
Olectra Greentech, Mahindra Electric mobility, Ola Electric Mobility etc.
 Case Solution
The electric vehicle market is rapidly expanding, and it will soon be the future of the automobile
industry.
The demand for electric vehicles has increased, and thus the need for charging stations has
increased, but proper infrastructure and investment are not available in a few countries for the
same, which creates a hindrance in people's decision-making and makes them skeptical about
purchasing a vehicle.
In India the level of market maturity also varies according to the state depending on factors,
including demographics, income levels, regulatory landscape, and urbanization. The state of Uttar
Pradesh, for instance, with one of the lowest urbanization rates, has seen significant uptake of
electric two-wheelers. Maharashtra, on the other hand, with a higher urbanization rate, has the
highest penetration of electric three-wheelers and passenger cars.

VRIO FRAMEWORK
VRIO is an acronym for Value, Rarity, Imitability and Organization which helps to evaluate an
organization’s resources and capabilities. In order to achieve the competitive advantage the
product must have these four characteristics.

Value:
EVs industry is growing at a high pace and our product helps in solving the problem of charging
them. There are very few products in the market which provide the same value
Rare:
Portable battery charging stations are a new concept, thus it is rare in the market. But there are no
barriers to entry in this segment. So, in the long run, the product might not be rare. Thus it is needed
to make continuous innovation in the field.
Imitable:
Imitability is the ability of your competition to imitate your solution. Portable charging stations
are easy for the competition to imitate. Thus our product is easily imitable and has to be updated
accordingly to set it apart from competitors.
Organization:
For portable battery charging station our resources are in place and it is possible to take the
maximum advantage out of the market currently. But in the later phase plans need to be changed
to rank it ahead of the competition.

Ideal Innovation Framework

This framework helps to understand three parameters by which we answers three questions such
as -

• Desirability — Are We Solving for the Right Pain Point?

• Feasibility — Are We Building on our Core Operational Strengths?
• Viability — Does Our Solution Contribute to Long-Term Growth?
Porter’s five forces
To analyze the company’s competitive environment, the Porter’s Five Forces are tabulated below:

Competition in the Industry Initially the competition will be low but

eventually it will increase

Potential of New Entrant It will be high as established manufacturing

firms will quickly be able to produce such
batteries

Bargaining Power of Suppliers Due to narrow supply chain network,

suppliers have a lot of negotiating leverage

Power of Customers Customers’ power will be medium as this

product will be completely new in the market

Threat of Substitute Products No such product in the Indian Market so the

risk of substitute will be limited

Pricing Strategy
Many aspects of your organisation, such as revenue targets, marketing objectives, target
audience, brand positioning, and product features, are taken into account when developing
pricing plans. External factors such as consumer demand, competitive price, and broader market
and economic trends also have an impact.

Pricing structure

Single Battery

Make and Model Rs. 1,17,899

GST @5% Rs. 5900 (approx)

FAME-II Subsidy (INR) Rs. 30,000 (approx)

Ex-Showroom Price Rs. 93,799

The basic variant costed Rs 93,799 while the premium variant costed Rs 1,23,799. The model
includes few major things like Motor, Frame, Battery, other components and profit. Also for dual
battery variant an additional battery costed Rs 23,000. And the state government subsidy is not
included in the pricing structure, which got directly got transferred to the beneficiary account by
the authorities.
The Battery swapping stations has monthly subscription charge - Rs 999 and additionally charge
of Rs 35 per swap.
There will also be a battery care package, which will have insurance premiums like applecare.

Key points that were taken care while determining the price are as follows:
• Brand Reputation
• Competitor pricing analysis
• Newness of electric vehicle
• A/B Price Testing
• Utilizing Pricing psychology

Thank You