Prepared By:

1. Amr Usama
2. Mohamed Awad
3. Kareem Alaa
4. Hany Hassan

DBA – IB Final Project – Group B China – Dr. Tamer Karam

 Content
1. Introduction
2. Company Profile & History
3. Business Outlook
4. Leadership & HR Practices
5. Chinese Versus Egyptian Culture
6. Industry Analysis Elements
a. PESTLE Analysis
b. PESTLE Implications on Business
c. Porter Five Forces Analysis
d. Industry Life Cycle Analysis
e. Opportunities & Threats
7. Conclusion & Decision
8. Alternative Strategic Decision and Reasons
9. References
 Introduction
The selection criteria for the product and industry

 By 2030, there will be more than 77 million electric vehicles worldwide, and this is nearly 3 times the
currently number in place, which gives Egypt a competitive advantage if it is expanded proactively to gain the
ability to export.
 Electric cars travel an average of 400 km per electric charge, and their speed reaches 150 km per hour. They
are also easy to drive, their safety rates are very high, and they conform to the international specifications
and requirements, in addition to the low cost of use, as the cost of one charge ranges from 90 to 190 Egyptian
pounds, and they are friendly to the environment.
 The Egyptian President’s statement of personal commitment towards seeing electric cars in Egypt.
 The Egyptian government launched the national strategy for the automotive industry, with Production
Incentives Tax and tariff reductions.
 Attracting foreign investments in production components industries which supports the supplying process.
 The presence of the strategic alternatives in the neighboring countries which have the ability and the healthy
environment to embrace the business .
 Company Profile

Leapmotor is a Chinese automobile manufacturer headquartered in

Hangzhou, China, specializing in developing electric vehicles.

Mission: We are a leading smart EV company based in China that

strives to deliver the finest smart mobility experience to all
consumers.

We have a deep management team with diverse backgrounds who

worked at world-renowned automotive and technology companies
and financial institutions to bring us years of in-depth expertise and
business acumen.
Details

• Valuation: $ 1.01 B (November 2018)

• Number of employees: 500 -1000

• Number of investors: 12
 Company History

 Founded in 2015 by a world-class engineer and visionary entrepreneur with nearly

30 years of experience in electronics and technologies

 In 2017 A prototype was shown at the Guangzhou Auto Show at that time, the
company had raised 380 million in capital, and construction of the factory had
started.

 In June 2019, the first product, the S01 electric coupe, is launched in the Chinese
market. The first deliveries occurred of the S01 in June 2019.

 On June 13, 2018, Leapmotor announced that the first domestically made artificial
intelligence chip designed for autonomous vehicles, and features the capability of
deep learning and leading computing power has entered the integration
verification phase.
 Company History
 In May 2020, Leapmotor and State-owned Chinese automaker FAW forged a
strategic partnership to jointly develop intelligent electric vehicle models. The
agreement also involves the joint cooperation on R&D, manufacture,
production and application of intelligent electric vehicle core parts, and the
development of key basic technologies and innovation of production measures.
 On May 11, 2020, Leapmotor officially launched the second mass-production
EV, the T03 electric city car. The vehicle was launched with a total of 3
models this time. The price range is US $9,280 – US $10,691. The T03 equips a
battery pack with a capacity of 36.5kWh, and a 403km NEDC cruising range
 In November 2020, Leapmotor officially launched the third mass-production
EV, the C11 electric crossover. The C11 is powered by dual electric motors
jointly rated at 544 PS and 720 Nm of torque. The C11 have around 600 km of
driving range.
Sales Data

Sales
120,000.00
111,168.00

100,000.00

80,000.00

60,000.00

43,121.00
40,000.00

20,000.00
10,266.00
1,000.00
-
2019 2020 2021 2022
Stock Data
 Business Outlook

 Focus on R&D and Product Development.

 Growth in customer base and expansion of sales and service network.
 Continuously invest in advanced intelligence and electrification
technologies and enhance the operational efficiency.
 Continue to penetrate the mid to high-end segment in China’s EV market
by expanding and upgrading smart EV portfolio.
 Increase the brand awareness and recognition.
 Adhere to the direct-to-customer strategy, and offer more digital value-
added services.
 Plan to expand the presence into other major markets and strive to
become a global EV company.
 Leadership & HR Practices

 The company provides stock options under the Share Award Scheme,
to recognize the contributions of the key employees and motivate
them to further promote the development of the Company.
 The company conduct safety awareness, quality awareness and
corporate culture training for R&D and manufacturing staff and
implement a comprehensive training system for all employees
including various training courses conducted online and offline on a
weekly basis.
 The company offer the employees competitive compensation
packages and a dynamic work environment that encourages
initiative.
 The group participates in various government statutory employee
benefit plans, including social insurance, namely pension insurance,
medical insurance, unemployment insurance, work-related injury
insurance and maternity insurance, and housing funds.
 Chinese V.S Egyptian Culture

 Power distance: Both Countries people accept a hierarchical order. Hierarchy in an

organization is seen as centralization is popular, subordinates expect to be told what
to do.
 Individualism: Both countries have a collectivistic society. This is manifest in a close
long-term commitment to the member ‘group’, be that a family, extended family, or
extended relationships.
 Masculinity: Both countries have a high score (Masculine) on this dimension indicates
that the society will be driven by competition, achievement and success, more than
the values of caring for others and quality of life.
 Uncertainty Avoidance: Egypt exhibiting high Uncertainty Avoidance maintain rigid
codes of belief and behavior and are intolerant of unorthodox behavior and ideas.
The Chinese are comfortable with ambiguity. Chinese are adaptable and
entrepreneurial.
 Long Term Orientation: Chinese culture is a very pragmatic culture. In societies
with a pragmatic orientation. They show an ability to adapt traditions easily to
changed conditions, a strong propensity to save and invest, thriftiness, and
perseverance in achieving results. Egypt culture is somewhat normative. People in
such societies have a concern with establishing the absolute Truth; they are
normative in their thinking.
 Indulgence: Both countries are very Restrained country. they have a tendency to
cynicism and pessimism. Restrained societies do not put much emphasis on leisure
Industry Analysis Elements
PESTLE Analysis
PESTLE Implications on Business
 Porter Five Forces Analysis

 Threat of New Entry

• Low risk for short term
• Moderate risk after high level of product adoption

 Power of Suppliers
• Low level of suppliers risk

 Threat of Existing Substitutes

• Moderate risk incase of insufficient acceptance of electric cars ideas

 Buyer Power
• Low Buyer power especially in short term

 Competitive Rivalry
• Moderate rival threats
Life Cycle Analysis

• Industry in Growth Stage

Opportunities & Threats

• There is an opportunity in every crisis

• Companies make money in emerging markets
Conclusion & Decision
Alternative Strategic Decision & Reasons

Go To Saudi Arabia:
 The Kingdom of Saudi Arabia launched the “Sir” brand for electric vehicles,
and it was preceded by the launch of “Lucid” Electric Vehicle Company, in
May (2022), by building the first factory in the Kingdom in King Abdullah
Economic City, with investments amounting to 12.3 billion. riyals ($3.27
billion), with a production capacity of 155 tons. thousand cars annually.
 It is planned that the Lucid factory in the Kingdom of Saudi Arabia will
produce 4 types of electric cars, starting in 2023, provided that the factory
reaches its full production capacity by 2028, with plans to export
approximately 95% of its production.
 In general, Saudi Arabia aims to build two electric vehicle factories to
produce 300,000 vehicles annually, according to the Kingdom's national
industrial strategy, which was announced in 2022.
 Saudi Arabia has the ability and the healthy environment to embrace the
business .
References

 https://en.leapmotor.com/home
 Leapmotor Annual Report
 Leapmotor YouTube Channel
 https://www.hofstede-insights.com/country-comparison/
 www.failory.com/startups/china-unicorns
Thank You