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Very often we hear from our friends and also experience it ourselves that due to the shortage of crude oil the prices of oil are increasing day by day, also the consumption of oil polluting the environment.If the situation remains same the day is not so far when the prices of petrol will be higher than the gold and silver and there would be high scarcity of oil and gases. In order to getting out of this problem and find out some solution many scientists are being involved in various research, one of them solution could be the use of solar energy to run the car. There is only one source provided by nature which is available infinite is sun, so can only depemdent on sun in the near future.Here we have come up with an idea of solar car in which the car would be build in such a way that it will observe the solar energy from the sun and will run, here the oil could be use as a alternative source in case battery could not charge.
2 The product
Solar cars are powered by the sun's energy. The main component of a solar car is its solar array, which collect the energy from the sun and converts it into usable electrical energy. The solar cells collect a portion of the sun's energy and stores it into the batteries of the solar car. Before that happens, power trackers converts the energy collected from the solar array to the proper system voltage, so that the batteries and the motor can use it. After the energy is stored in the batteries, it is available for use by the motor & motor controller to drive the car. The motor controller adjusts the amount of energy that flows to the motor to correspond to the throttle. The motor uses that energy to drive the wheels.
3 Analyzing the market and industry Attractiveness
Any successful entrepreneurship comprises of through understanding of the market, the industry and the team dynamics. Both the market and the industry needs to analyzed at both macro and micro-levels.
3.1 Market Domain
The market comprises of the potential customers who have the willingness and ability to
buy the service.
The market comprises of the potential customers who have the willingness and ability to
buy the service.
At a macro level, making a conservative estimate based on the population of people
above the age of 18 years. More than 80% of people above the age of 18 showed their interest in such kind of product and they never expected of such kind of innovation.
In the research finding we came to know that on an average individual spend 5000rs in a month on fuel consumption so yearly it comes around 60,000rs. In the solar car the batteries needs to be change after every 5 yrs which costs around1-2lacs which is very less than the expenses on fuel consumption in 5 years i.e. around 3lacs.
3.2 Industry Domain
A better analysis of the competitive situation in the industry at a macro level can be done using the Porter's five forces model.The forces that shape the competition
are best explained using Michael Porter's Five Forces Model. The configuration of the five forces differs from industry to industry. In this case, the power of suppliers and customers are more benign compared to the threat posed by the competitors and substitutes.
Rivalry among competitors
The major competitors can be YO bike as they are manufacturing Electric vehicle but as of now it is only in two-wheeler segment. so there is no any major competitors in the market because the product is new and innovative.
Threat of substitutes:
The substitutes would be activities that could be anything other than those offered by the company Substitutes could be the use of oil vehicle as usual, the use of electric vehicles
Threat of new entry:
The threat of entry of new business is very very less because this idea involved high degree of technology, major distribution cost, some government restrictions, high switching cost and huge investment on research & development.
Threat of bargaining power of suppliers:
As such no threat from suppliers is anticipated.
Threat of bargaining power of buyers:
The bargaining power of such kind of product is very less because the first thing is that target market segment is upper and middle class secondly the product is environment oriented, innovative and solution of various fuel related issues. In the research finding we came to know that people are very enthusiastic and happy if such kind of innovation comes in the market.
Analyzing the industry from micro level the swot analysis of the industry are as follows:-
One of the major advantage is no fuel cost,no pollution,no use of fossil fuel,quiet operation and it is fun to drive
It is completely pollution free so it will appeal to those people who are conscious of environment
It does no produce any harmful emission in the air while it is running
Since the sun is available to everyone at all time during the day time and at no cost the solar car does not require ant refuelling and oil changes
The conversion of the sun's energy into electricity is done through the exchange of photons and electrons inside the solar cell
It can not operate for a long period of time at night
During the cloudy day the speed must be reduced considerably for a long distance
The cost of the parts is high because the solar cells and batteries are very expensive
There is a huge market in tier-1 and tier-2 cities for this product
Future market expansions is very high as the fuel problem is increasing day by day
The major threat is electric vehicle.
3.3 Team Domain
Mission,Aspirations and propensity to risk:-
The mission of sunvee is "To pursue excellence deliver cars that inspires and protect the environment". Provide the best service to customers in the new direction and meet their expectations, also protect the invironment from various emission in order to keep prople healthy and protect them from various diseases.
Connectedness in value chain:-
In the value chain model the primary activities includes purchasing or raw material, spare parts, tools machinery, solar cells and batteries etc and conversion of these into finish product which solar cars. Support activities includes human resource, technology, infrastructure and maintain the relationships with various business partners.
Ability to executeon CSF'
The key success factor of idea
1. Initial testing and proof of concept has been accomplished.
2. There is an obvious need for non-polluting vehicles, both from consumer demand and governmental mandate.
3. Uniqueness of styling and function will set the SunVee aside from the competition.
4. The marketing strategy for extremely low overhead will be a decided advantage
4. RESEARCH FINDINGS
To determine the feasibility of the concept and to understand the consumers better, a survey was conducted across 6 cities in India. A questionnaire was administered to 500 respondents in the cities of Delhi, Mumbai, Calcutta,Chennai, Jaipur and Ahmedabad.
The respondents were randomly chosen from individuals in the age group of above 18 years of age (The target segment of consumers).
The data collected was analyzed using SPSS and following are the major findings of the survey
Out of 500 people surveyed 400 indicated their interest to such kind of innovative product, indicating 80 % success rate.
A region wise analysis of the data indicates a greater acceptance of the idea in Metro cities as compared to smaller town. The same needs to be further substantiated with the help of more surveys in tier - II cities and smaller towns to determine the market feasibility.
It was seen that people in the higher and middle income group, have shown a positive response towards the idea.
Around 50 % stated that money is not an issue for such an innovation but safety and environment protection is major issue involved.
Some people are worried about the convenience issue.
Some people say product might not be reliable and durable.
5. LOCATIONS AND FACILITIES
In the initial stage we are planning to target metro cities Delhi,Mumbai,Calcutta,Chennai. By the research finding we came to know that the demand in metros are high because the consumption and pollution of fuel is high. There would be a main factory that assembles the various components. This factory would best be located in the central United States, adjacent to a railroad siding. Components could be delivered by rail, and the completed SunVees could be shipped via rail to a network of regional distribution points. These distribution points would not need to be warehouses; simple fenced enclosures would suffice to keep them, since they are completely weather-proof. In fact, if they are kept outside, the batteries will be fully charged and the vehicle ready to drive.
SunVee would be substantially an internet-based company. Much of the customer relations, ordering, parts dissemination, and problem troubleshooting would be done on-line. National advertising through other media would direct customers to the sunvee.com website.
Customers who have bought a SunVee would be given the opportunity to make a substantial commission on sales to other interested persons who have learned about it through this contact. In this way, the customers would become the sales force who would demonstrate and promote the vehicle. Of course the SunVee will generally sell itself because of its value, utility and styling.
The fact that there would not necessarily be retailers, with enormous overhead, would allow very competitive pricing, and generous commissions to agents. Once the ball got rolling, this could be a very effective way of selling the vehicle.
There would be a main factory that assembles the various components. This factory would best be located in the central India, adjacent to a railroad siding. Components could be delivered by rail, and the completed SunVees could be shipped via rail to a network of regional distribution points. These distribution points would not need to be warehouses; simple fenced enclosures would suffice to keep them, since they are completely weather-proof. In fact, if they are kept outside, the batteries will be fully charged and the vehicle ready to drive.
To get SunVees to customers who have bought them, a regional employee, working on a commissioned basis and driving his own vehicle, would make deliveries directly to the customer's home and would complete the transaction. This could be done with a trailer that carried several SunVees, towed by a van or pickup truck. An economical route could be calculated in advance to make several deliveries during one trip out.
The basic SunVee is so simple mechanically that regular auto mechanics should be able to make repairs. Guidance for servicing would be available at sunvee.com, or by phone. Of course there would be a thorough owner's service manual as well.
7 MANPOWER PLANNING-
Manpower would be kept to the minimal as it is a startup .The core team required would be about 5 engineers whose job will be to only look after only the designing and improvement of the car under the supervision of a chief engineer. administrative department will have 1 head under whom there will 2 accountant to carry out daily audits. The marketing team will be headed by 1 person under whom there will be 2 salesmen and one it professional to keep the site running, improving it constantly and making sure that the site is running as major sales is expected from the website .Salesmen will be required to be doing the initial sales and then providing after sales once there are enough cars sold.