International Business

Environment and
Market Entry Strategy
Analysis Ola Electric –
Ola S1

Group: 09 (Section C)

Surya Ramesh Mandapaka MBAA20012

Rahul Rathod MBAA20023
Stanley Stephen MBAA20036
Rajeev MBAA20024
Roopak M MBA20196
Ashish Raj MBA20155
About Ola Electric
•Established in 2017 – wholly
owned subsidiary of ANI
technologies (parent company of
Ola Cabs)
•Acquired Etergo (Amsterdam
based e-scooter manufacturer) in
May 2020 – to launch own line of
e-scooters
•500 acres of fully automated
production plant in Tamil Nadu –
can produce 10 Million units •Current Valuation – 5 Billion USD
annually if run in full capacity
 Ola S1

S1 is the
first electric Comes in 2
variants –
two Ola S1 and
wheeler Ola S1 pro
launched

Both are
Difference in
identical in terms of
terms of performance
design
 Indian Market

• The EV market clocked around 234,000 unit Reasons for huge demand of Ola Electric on Indian urban
sales of electric two wheelers, mostly e- consumers-
scooters, in 2021. • Great brand visibility
• In spite of the supply side constraints the • Urban personal commute - average drive distance is about 17-20
market looks promising for the electric two- km a day which for an EV can be managed by a charging unit at
wheelers. home
• In 2012-13, the top 3 players accounted for • Government policies and incentives
99% of market share whereas in 2020-21, the
top 3 players only accounted for 67% of Some of the downsides of Ola Electric:
market share.
• Unprecedented demand in India, and long wait times to fulfil
Indian orders
• Semi-Conductor Crunch
Company Unit Sales (Feb 2022) • Factory is not being operated at fullest capacity, and certain
Hero Electric 7536 wings like painting shop, is not at all in operation.
Okinawa Autotech 5923
Ampere Vehicles 4303
Ola Electric 3904
Ather Energy 2229
 Denmark Market

Facts
Political Economic Demographics Cultural
Relatively
Small • Denmark is an • Denmark is a mixed • Even though Danish • Danish is the national
Country
60% individualistic and a
40% 20% economy like India. consumers are seen language of Denmark
democratic country. • It is dominated by as early adopters of • A large majority (86%)
• Registration tax is service industry and certain products, of Danes speak
Average Age less for electric mostly dependent on primarily hi-tech English as a second
vehicles compared to foreign trade (50% of products, a majority language with high
– 42.2 years others. GDP). are also relatively level of proficiency.
(2022) •  In capital city, • Denmark’s standard conservative. They • The power distance is
Copenhagen, there of living is among the prefer to buy products less in Denmark,
are certain restrictions highest in the world that have already while its very high in
in renting e-scooters with a GDP per capita proven their India
Urbanization (mostly in populated of $63,880 in 2020. technology and value • Also, the female
– 88.12% areas – parking of • Denmark is a firm employment rate is
scooters shouldn’t be advocate of liberal high in Denmark
done) trade and investment compared to India.
policies and actively
GDP PC – encourages foreign
investment. 
USD 1900
 Electric Vehicles' Target Market in Denmark

People have begun to adjust their behaviours to protect the environment as their understanding of
climate change has grown.

This principle had been used to a variety of fields, including throwaway clothing, paper, and the current
trend of environmentally friendly electric vehicles.

The Technologically Oriented sector consists of the tech-savvy majority who are interested in the latest
technology and are eager to try new things.

Even after becoming aware of environmental problems, the Less Flexible Environmental sector is
resistant to change, which includes changing their lives.

All of the above segments were classified as high-income ($100,000 or more in annual income).

According to studies and polls, over 38% of adults aged 30 to 39 (Millennials) were more likely to buy an
electric vehicle after reading about them online

Considering only the cities ( Copenhagen and Aarhus) and the affluent with 20-
39 years, the target population would be 110,000
 Operational concerns

In India, Ola Electric has faced many operational concerts since it started selling its electric scooters ola s1 and
ola s1 pro. The delivery time is very high. Unless the factory is run to fullest capacity, it would be a problem to
cater needs of both India and Denmark customers

Lot of workaround required - Customers who have received scooters are reporting concerns such as damaged
vehicles with cracks and dents all over the body, delayed charger installations, and insurance policy
discrepancies, among other things. Users have also expressed dissatisfaction with vehicles that deliver
significantly less mileage (range) in real-world conditions than advertised.

Presently Ola Electric does not follow the traditional dealership model. The company delivers scooters to the
buyer's door from the Futurefactory in Chennai. But this is not possible in Denmark, as setting a factory in
Denmark and directly delivering to the customers will require lots of time and resources

Ola also had many of the top executives leave the company such as Chief Financial Officer Swayam Saurabh
and Chief Operating Officer Gaurav Porwal have left the company along with a lot of notable executives
mentioned below
 Electric Vehicles' Target Market in Denmark

Operational concerns:
 International Business Entry Strategy
Growth Challenges Foreign investors face in starting business in Denmark
Factors
Changing
Consumer
Hi-tech Long-term
Sentiment
60% 40% 20%
Conservativeness relations
Taxes Currency

•Danish consumers •Danish companies •Danish wages are • Danish Krone is

Policy and are early adopters believe in long-term high and personal pegged to the Euro
of hi-tech products relations taxes are among with a very narrow
legislation the highest in the band (2.25%) of
Prefer to buy •Make a fast buck world Central Bank
products that have may find better intervention rates
OEM already proven their opportunities in •strong international
vehicle technology and markets other than confidence in the
strategy value.  Denmark. Danish economy
and the Krone
The role of
corporate
companies
 International Business Entry Strategy
Favourable
Conditions
Macroeconomic conditions are
sound and investment climate is
favourable
60%
The strategic location of Denmark,
linking continental Europe - more
than ideal for business, transport,
and overall globalization.
access to skilled labor, and
openness to foreign investment,
Foreign trade is also positive as
we can see an increase in both
exports and imports in recent
years
Potential Entry Strategies
Joint Venture
•To minimize the risk of
entering an international
market, creating joint
20%
ventures with other
companies that plan to sell
in the global marketplace is
feasible
•Since joint ventures often
function like large,
independent companies -
earn more revenue than
individual companies
•This market entry strategy
carries the risk of an
imbalance in company
involvement, but both parties
can work together to
establish fair processes and
help prevent this issue.
Franchising
• A franchise is a chain retail
company in which an
individual or group buyer
pays for the right to manage
company branches on the
company's behalf
• Since, Denmark welcomes
foreign trade, introducing
Ola Electric as a franchise
would be a viable option that
also would reduce risk
• Franchising typically
requires strong brand
recognition, as consumers in
your target market should
know what you offer and
have a desire to purchase it
Piggybacking
• Denmark has growing EV
market, hence the company
prominent in the field can be
contacted and ask whether
Ola Electric can be added to
their overseas inventory
• If Ola and an international
company agree to this
arrangement, both parties
share the profit for each sale
• Ola can also manage the
risk of selling overseas by
allowing its partner to handle
international marketing while
your company focuses on
domestic retail.
 Go to marketing strategies

Product offerings Sales After sales service Business model

• Specific Brand positioning • Omnichannel approach • Upgrade after-sales • Enhance the business model
• Improve the charging experience to achieve profitability
ecosystem
• Generate income from the
lifecycle
• Focus on the sales force
 Specific Brand positioning
• Emphasis on distinct elements to establish a compelling value proposition for their EVs The value proposition should be consistent
with the broader brand while also being unique to electric vehicles
• Produce appealing new solutions, such as integrated EV-mobility bundles that combine products and services
• To contact and educate potential EV buyers, companies should employ new and personalised tactics, such as digital ads
• To reach scale fast and build a network of EV champions for brand, it will be vital to focus on areas and customer categories that are
actively exploring Evs
Improve the charging ecosystem
• Brands should build and manage networks of major ecosystem partners as rapidly as feasible to construct end-to-end charging
systems with single points at a reasonable cost to consumers access
• Public charging infrastructure
• Proactively advertise a new charging lifestyle
• Easy plug-in solution for charging at home
Generate income from the lifecycle

• Brand must pursue other revenue opportunities throughout the product life cycle to achieve sustainable margins. The other
revenue opportunities like offer on-demand services and features. generate revenues from the data of customers and vehicles
 Focus on the sales force

• There were several reasons for the problem: a lack of knowledge among salespeople about some of the potential benefits of EV, the
human tendency to avoid criticism, and lower EV dealer margins and after-sales revenues. To change all this, it must not only support
their dealers as they build the required infrastructure and capabilities but also, at the same time, provide incentives that make EV
sales
• Organisation should track their own and third-party dealers' performance to ensure that an optimal EV sales pitch is delivered
consistently
• Organisation could also provide incentives to dealers to boost the number of test drives, exposing more customers to the new
technology
Omnichannel approach
•  Invest significantly in their digital presence to provide easy access to information about important customer concerns. Ensuring
seamless online–offline integration between digital touchpoints and dealers is important too
Upgrade after-sales experience
• Service and maintenance plans tailored to electric vehicles. They also necessitate highly trained technicians who are familiar with
battery and high-voltage technology
Enhance the business model to achieve profitability
Thanks!