GLOBAL BUSINSESS IN CONTEXT

OPPORTUNITIES AND CHALLENGES OF ARRIVA(EV) IN

NIGERIA
 
GROUP 5
Abiodun Ogunwale B00942643
Ayokunle Oyediran B00947372
Chamila Priyadarshanie B00934412
Usha Rani Paul B00944703
INTRODUCTION
Arriva E.V. is expanding to Nigeria
Production of Electric Vehicles
To promote sustainable transportation.

To pave way for cleaner solutions

Cost-effectiveness.
Produce vehicle with Lower fossil fuel consumption
Lower emissions
Low maintenance costs.
To ensure successful expansion, Arriva E.V. will employ the
CAGE framework, analyzing cultural, administrative,
geographic, and economic dimensions (Ghemawat, 2001).
Arriva E.V. aims to revolutionize Nigeria's transportation
landscape.
 Significance of analyzing Arrival international market
opportunities in Nigeria using CAGE framework.
The relevance of the CAGE framework to the analysis
above lies in its ability to provide a comprehensive
understanding of the cultural, administrative, and geographic
factors that influence the identification and targeting of
potential customers (Kotorov et al., 2020). By utilizing the
CAGE framework, Arriva E.V. can effectively assess the
cultural nuances, administrative regulations, and geographic
challenges specific to Nigeria, which ultimately impact their
customer base. This framework enables Arriva E.V. to tailor
their marketing and customer acquisition strategies
accordingly, ensuring the identification and generation of
high-quality leads in the Nigerian market.

CULTURE NOTE PROSPECT

Beliefs Nigeria's diverse cultural Challenge

landscape may lead to varying
beliefs and attitudes towards
electric vehicles (EVs). Some
communities might be
resistant to change and
skeptical about adopting new
transportation technologies.
Language English is the most widely Opportunity
spoken language in Nigeria
Communication Styles Nigeria is a linguistically Challenge
diverse nation with over 500
languages spoken. Effective
communication across
different linguistic groups
might pose challenges for
Arriva E.V.'s marketing and
customer engagement efforts.
Religion Some religious teachings Opportunity
emphasize stewardship of the
environment, which could
resonate with EVs' eco-
friendly nature. Highlighting
ADMINISTRATIVE NOTE PROSPECT

Government Policy The Nigerian government has Opportunity

expressed interest in
promoting sustainable
development and renewable
energy. Leveraging this
interest, Arriva E.V. can
engage in constructive
dialogues with policymakers
to advocate for favorable
policies and incentives that
support the adoption of EVs.
Currency Volatility Nigeria has experienced Challenge
currency fluctuations, which
can impact the project's
financial viability. Currency
depreciation may lead to
increased costs for importing
EV components and
equipment.
Port Access: Nigeria has several major Opportunity
seaports, such as Lagos, Port
Harcourt, and Onne, and
growing development of ports
GEOGRAPHIC NOTE PROSPECT
Physical distance Nigeria's vast size and Challenge
geographical diversity can
pose challenges in reaching
customers and establishing a
consistent brand presence
throughout the country.
Time zones By establishing efficient Opportunity
communication channels and
streamlining internal
processes, Arriva E.V. can
effectively manage time zone
differences and ensure smooth
operations across the country.
Logistics Nigeria's infrastructure and Challenge
transportation networks may
present challenges for the
efficient distribution of EVs
and charging infrastructure.
Poor road conditions and
limited transportation options
could lead to delays and
increased costs.
Transportation Nigeria's road network, Challenge
especially in rural areas,
ECONOMIC NOTE PROSPECT

Gross Domestic Product Nigeria's GDP was estimated Opportunity

(GDP to be around $514 billion USD
(World Bank data for 2020).

Unemployment rate Nigeria faces challenges in Challenges

reducing its unemployment
rate. High unemployment may
impact consumer spending and
affordability of EVs for some
segments of the population.
Market size/Population Nigeria's large population Opportunity
offers a substantial market for
Arriva E.V. to tap into. By
effectively targeting different
segments, including urban
centers and emerging middle-
class consumers, the company
can scale its operations and
boost revenue.
Power/Electricity According to estimates by the Challenge
World Bank, about 55% of
 SUMMARY OF KEY FINDINGS

- Arriva E.V.'s expansion into Nigeria aims to promote sustainable transportation through EV
introduction, aligning with their commitment to cleaner solutions and cost-effectiveness.

- The CAGE framework is being employed to address cultural, administrative, geographic, and
economic dimensions for successful market entry.

- Cultural considerations include tailoring marketing and communication strategies to resonate

with Nigeria's diverse cultural landscape, building a positive brand image.

- Administrative challenges include navigating complex regulations, currency volatility, and

obtaining necessary permits for operations.

- Geographic factors such as Nigeria's vast size and varied infrastructure require optimizing
logistics and distribution through partnerships and improved port access.

- Economically, Arriva E.V. sees opportunities in Nigeria's large market size and population,
while acknowledging income inequality and unemployment rates as potential challenges.

- Overall, Arriva E.V. is poised to revolutionize Nigeria's transportation landscape by focusing

on sustainability, environmental consciousness, and adaptability to the local context.
HOW ARRIVAL CAN ADAPT ITS
PRODUCTS
Arrival can adapt products for Nigeria by
offering longer-range EVs, affordable options,
localized manufacturing, reliable charging
infrastructure, and personalized
customization. Education, partnerships, eco-
friendly materials, and data connectivity
enhance market penetration and
sustainability impact.
Solution to the challenges

1. Collaborate with local governments for job creation and offer

affordable EV financing.
2. Invest in a reliable charging network and explore renewable energy
sources.
3. Tailor marketing campaigns to respect cultural nuances.
4. Work closely with government agencies for regulatory compliance.
5. Partner with local logistics providers for efficient distribution.
6. Design weather-resilient EVs for reliability.
7. Launch awareness campaigns for EV education.
8. Introduce entry-level models and flexible payment options for
affordability.
9. Prioritize eco-friendly materials for reduced environmental impact.
10. Establish a robust service network for customer support.
 Recommendations for Arrival E.V.:

1. Sustainable Partnerships: Collaborate with Nigerian authorities, local businesses, and NGOs to foster
sustainable partnerships that support EV adoption, charging infrastructure development, and
environmental initiatives.

2. Public Awareness Campaigns: Launch extensive public awareness campaigns to educate Nigerians
about the benefits of EVs, dispel myths, and promote their positive impact on the environment.

3. Localized Manufacturing: Explore opportunities for localized manufacturing or assembly of EVs in

Nigeria to reduce import costs, create jobs, and strengthen ties with the local community.

4. Innovation and Research: Invest in research and development to continuously improve EV

technology, range, and charging capabilities to meet Nigeria's unique transportation needs.

5. Charging Infrastructure Expansion: Accelerate the establishment of a widespread and reliable

charging infrastructure across key urban centers and highways to alleviate range anxiety and
promote EV adoption.
6. Government Advocacy: Engage in constructive dialogues with the Nigerian government to
advocate for supportive policies, incentives, and regulations that encourage the adoption of
sustainable transportation solutions.

7. Affordability and Financing: Develop financial partnerships to offer competitive EV financing

options, making EVs more accessible to a wider range of customers.

8. Eco-Friendly Materials: Emphasize the use of eco-friendly materials and sustainable

manufacturing processes in the production of EVs to minimize the environmental impact.

9. Customer Experience: Prioritize exceptional customer experience by establishing prompt and

efficient after-sales support, maintenance services, and user-friendly charging interfaces.

10. Community Engagement: Engage with local communities to understand their unique needs
and preferences, incorporating their feedback into product development and service offerings.

By implementing these recommendations, Arrival E.V. can strengthen its position in the Nigerian
market, promote sustainable transportation, and contribute to Nigeria's efforts towards a
greener and more environmentally conscious future.
 CONCLUSION
In conclusion, Arrival E.V.'s expansion into Nigeria with
electric vehicles presents a promising opportunity to
revolutionize the country's transportation landscape. By
strategically addressing cultural, administrative, geographic,
and economic factors, Arrival can navigate challenges and
capitalize on opportunities. With a focus on sustainability,
affordability, and customer-centric solutions, Arrival can
drive positive change, contribute to Nigeria's environmental
goals, and create a lasting impact on the mobility sector.
Through collaboration, innovation, and community
engagement, Arrival E.V. has the potential to be a leading
force in promoting sustainable transportation and shaping a
greener, more sustainable future for Nigeria.
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