An Electric Vehicle Conversion Start-Up. Development of a Business Model Approach

Master's Thesis from the year 2019 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, Niederrhein University of Applied Sciences Krefeld (School of Business and Economics), language: English, abstract: Today's world of mobility is characterised by a high degree of dynamism and change is becoming apparent. Currently, around 45 million passenger cars with conventional combustion engines, powered by diesel or petrol, are registered in Germany. The share of electric vehicles is still well below one per cent. Nevertheless, the voices for sustainable and environmentally friendly transport are becoming louder. One political measure in this respect is the implementation of driving bans in major German cities for some conventional combustion cars. Car electrification is a solution for converting cars with conventional combustion engines to electric drives. In the context of this thesis, car electrification is regarded as a transition solution towards a nationwide electrified transport network of new electric cars. A comprehensive concept of a business model approach from a start-up perspective has been developed based on the analysis of the environment, industry, and customer needs. Analysing the structure of the electrical conversion industry revealed that the subject of car electrification is hardly widespread and that current suppliers have only converted a smaller number of cars. Besides the small scale of implementation, the operational execution by existing suppliers can be considered weak in terms of competitiveness and sustainability. The analysis of the needs of potential customers of car electrification using qualitative and quantitative methods has led to incredibly valuable insights for the development of the business model approach. A high openness to purchase was expressed, considering some of the factors mentioned, such as a test drive with an electrified car before purchase and a durability guarantee of the conversion. The high relevance of initial acquisition costs compared to operating expenses in the purchase decision for passenger cars is another precious insight. The business model approach developed based on the findings obtained differs fundamentally from the strategies of today's providers. By incorporating the existing infrastructure of workshops and service points, proximity to the end customer and scalability of the business operation can be achieved. Partnering with universities and industry are two critical elements in the development of a sustainable, secure, and user-friendly technical solution.