ZAP and the Electronic Vehicle Industry
...sses, external opportunities, and threats. Strengths - Zap has the potential to enhance its competitiveness by capitalizing on unsolicited product exposure and endorsements by celebrities which can create an opportunity for potential market base expansion. Additional media exposure such as tie-ins with Old Navy, Sprite, and the 2000 Olympics also broadens their market of potential customers. Zap has a social advantage because their products are safer for the environment, which in turn leads to societal benefits in regards to the ozone and pollution. Zap has acquired valuable physical assets in terms of world wide distribution centers, outlets, and being a major figure in EV shows. Zap has attained valuable human resource assets through the acquisition of top managers from competing companies, which gives ZAP the intellectual capacity it needs to have superiority over its competition. Zap has also acquired valuable organizational asset such as copy rights, patents, and an e-commerce system, giving them the lawful protection from copyright infringement and the ability to recover damages from infringers. By establishing a brand name and name recognition, ZAP has created an intangible asset to build customer loyalty. Zap’s competitive capabilities have allowed them to react and quickly respond to the market’s changing trends and accommodate new products. ZAP has also adapted its strategy to the concept of the lower cost principle. This has allowed ZAP to successfully cut cost, expand market share, increase media coverage, and take a leadership role in the industry. Additionally, ZAP has formed many alliances and these fruitful collaboration of partnerships with suppliers enhances Zap’s competitiveness. Weaknesses- A weakness may or may not make a company competitively vulnerable, depending on how much the weakness matters in the market place. The major weakness of Zap is the company’s balance sheet which shows more liabilities than revenue, this could deter potential investors. The company focused their attention on investments and stocks that have not produced the return on investments they expected. Also, the adverse effect of seeking protective measures for their products generated additional legal costs. Their strategy for all their products was the same and they did not differentiate their approach to targeting specific group of customers. Additionally, their use of forecasting models did not represent the accurate market share and demand. Opportunities- Zap has an opportunity to expand its market in the US by putting more emphasize on marketing its products in urban areas or highly populated towns. If they emphasize more on e-commerce, they have an excellent opportunity to cut their middle-men costs and sell their product directly to the consumers. ZAP’s consumer base covers a multitude of demographics and over the years the buying public has increased their purchasing activities over the internet. If the company places discounted deals on their website they might be able to generate additional profits. ZAP’s global presence also allows them to reach more markets and move into new market segments that offer improved profitability. Threats The availability of substitution products such as inexpensive plastic scooters can be a big threat to ZAP. The increased intensity of competition by competitors such as Mercedes-Benz, Ford, and among industry rivals may cause ...