6.

What would you recommend NIO do to adjust its business model to enhance market
competitiveness? Present at least TWO recommendations with clear explanations.
1. Focus on creating a unique ecosystem of premium and personalized services that
cater to the needs and preferences of its customers:
NIO could differentiate itself from its competitors by creating a unique ecosystem of
premium and personalized services that cater to the needs and preferences of its customers.
NIO, for example, may create special lounges, charging stations, and service centers to
provide its consumers with tailored and opulent experiences. NIO might attract high-end
clients and build customer loyalty by providing such services, resulting in higher revenue and
profitability.
Creating an ecosystem of premium and personalized services can also assist NIO in
establishing itself as a lifestyle brand as opposed to just an automobile brand. NIO might
create a sense of exclusivity and distinction for its clients by giving a premium and
personalized experience, which could attract high-end customers who are willing to pay a
higher price for such services.
2. Invest in user operations to boost business model success:
To improve business model success, NIO could invest in user operations. Improving the user
experience through better customer care and support, building more efficient supply chain
management systems, and expanding marketing efforts to broaden its customer base are all
part of this strategy. NIO might strengthen its brand reputation and customer loyalty by
focusing on user operations, resulting in greater revenue and profitability.
Therefore, investing in user operations is critical for the success of any organization. NIO
may guarantee that its consumers are satisfied with their experiences by increasing customer
service and assistance, which might lead to favourable word-of-mouth marketing and higher
customer retention. Creating more efficient supply chain management systems could also
assist NIO in lowering costs and increasing profitability. Furthermore, increasing marketing
efforts to broaden its client base could assist NIO in reaching new audiences and establishing
itself as a market leader in the electric vehicle sector.
3. Provide innovative service models to give NIO a competitive advantage:
NIO might separate itself from its competition by providing unique service models that add
value to its clients. NIO, for example, might create a subscription-based model that gives
users access to a variety of services such as car upgrades, maintenance, and charging
services. NIO might build customer loyalty and create recurring income by providing such
services, resulting in increased profitability.
Offering distinct service models may provide NIO with a competitive advantage over its
competitors. A subscription-based approach, for example, might offer clients a simple and
convenient method to access a variety of services, thus increasing customer loyalty and
generating recurring income. NIO might separate itself from competitors and build a devoted
user base by delivering new and innovative service models.
In conclusion, NIO might strengthen its market competitiveness and profit margins by
focusing on developing an ecosystem of premium and tailored services, investing in user
operations to improve business model success, and offering innovative service models to
differentiate itself from competitors. NIO might position itself as a market leader in the
electric car sector and increase its long-term profitability by embracing these ideas.
References:
Shenvi, D. (2021, July 12). NIO’s business model & ecosystem strategy - the strategy story.
TheStrategyStory. https://thestrategystory.com/2021/07/12/nio-business-model-ecosystem-
strategy/
NIO unlocks its potential through standout user operations | McKinsey. (n.d.).
Www.mckinsey.com. https://www.mckinsey.com/industries/automotive-and-assembly/our-
insights/nio-unlocks-its-potential-through-standout-user-operations
Vinkhuyzen, M. (2022, June 23). NIO Enters the Global Stage — Not Your Average
Carmaker. CleanTechnica. https://cleantechnica.com/2022/06/23/nio-enters-the-global-stage-
not-your-average-carmaker/