ZAP
...7). The main reason for this is the cost, especially if manufactured overseas. Competition in the EV industry is growing now as well as the number of acquisitions. To acquire a company means to buy off another company and that way gain know-how, increase the number of customers, and lessen competition. ZAP took advantage of this and conducted several acquisitions itself (ZAP acquired EV Systems, CA; Aquatic Propulsion Technology, Inc. and many more). With this move, the company decreased its cost and this money was then used on further research and development. Differentiation in the EV industry started to grow with the growth of the interest in it from the customer side. Right now, ZAP is in the top ten of the industry (next to EV Rider, Bikit, Schwinn, etc.), but in order to keep its post, a lot of research is needed. In 2000, compared to the sales of electric bicycles in the United States, the sales elsewhere in the world were much higher. This presents a great opportunity for ZAP, but also means a high competition possibility. (Tables C-111) Many manufacturers in the EV industry sell their products through the Internet, of which many are publicly traded. Selling products via the Internet reduces costs and is easier to access for customers that do not live in the area of the company or its retail centers. ZAP is not an exception. ZAP started to use the Internet in 1997. In addition, using the Internet makes it easier to gather market intelligence on rival firms and potential suppliers and distributors. Globalization is a growing trend in the EV industry. Going global increases the number of customers overseas, a company gains valuable resources and lowers its costs, and spreads its business risk, too (Strickland, Thomson 200, C-113,114)). ZAP took advantage of this opportunity and now produces its products in Taiwan, China, etc., where the costs are low...