Electric Scooter Business Plan For Rental EV Scooters
Question
Task:
You are working for a leading consultancy firm in London. Your company offers advisory service to entrepreneurs. Your company is contacted by a new entrepreneur who wants to start a new business in local area. Therefore, your line manager has asked you to draw a business plan report for the client. Use learning outcome 3 and 4 (3. Undertake simple research into a new market area and present the research 4. Apply principles of marketing to a real-world case study) to complete this assignment. You must use the correct format for a business plan and include in your plan with relevant sections.
Assignment one is a business plan report that is based on initial market research for your own business idea (2000 words). This report should provide:
• Introduction:
a) An overview of your proposed business idea
b) A brief explanation of the personal expertise you have in this area; why will you be a success?
c) A brief discussion of the gap in the market you aim to fill
d) The location of your proposed business and justification for the choice
d) A brief outline of the report content and structure
• Main Body:
a) An evaluation of the current external environment (PESTEL analysis) relevant to your proposed business
B) A discussion of the competition; the competitiveness of the industry, who
your direct/indirect competition might be and what your competitive advantage will be
C) A discussion of who your target market will be and a justification for this choice
• Conclusion:
a) Bring together the ideas of your report; does the PESTEL analysis make the proposed idea viable?
b) What are the main opportunities you have identified that you intend to take advantage of?
c) What are the main threats you need to be aware of?
d) What are the next steps for your business plan (to be completed in your second assignment)
Answer
Executive summary
The provided business report is based on the new electric scooter business plan, which is being proposed by the line manager of a leading consultancy firm in London. The new business plan, which would be initiated by the entrepreneur, is the rental EV scooters. The business plan will be based on the market area research, which would help the entrepreneur to establish its business in the appropriate area as per the demand of the service. An overview of the business plan is provided, which would offer a brief idea about the business and the services the company will provide. The evaluation of the current environment of the chosen area would be conducted, which would help in getting the proper idea about the region where the business is going to be established initially. In addition, determination of competition and competitive nature of the industry is essential. Recognition and selection of targeted audience and market are essential as this will help in targeting the appropriate audience and being recognized by everyone. Additionally applying the principle of marketing in the proposed electric scooter business plan will help in acquiring the vital information, which will help in making the business plan more effective. Lastly, there would be a conclusion on the above-discussed areas, which will emphasize the significant opportunities which would be acquired from the business plan and the threats which can be faced by the business initially.
Introduction:
The proposed electric scooter business plan is an idea of rental based EV scooters. The business will offer a short range of mobility solution to the public of the selected area of London on a rental basis. The company will be offering its service to the local people of the region by providing rental electric vehicles, which will have a fixed range of 20km, with speed limit 25km/hr. The scooters will be designated to a particular position from where it can be hired by the consumers. After finishing the ride, the consumer will be parking the scooter in the nearest rental scooter infrastructure. The main objective of the electric scooter business plan is to provide a short-range mobility solution to the customer to their valuable time while creating less pollution. In this era of globalization, where the demand for the sustainable yet eco-friendly product and services are much-appreciated creation of rental EV scooter will be a great initiative. In addition, the entrepreneur has immense knowledge regarding the electric vehicle and its benefits.
Therefore, it would be a successful initiative of opening and enterprise based on this idea. However, it is also observed that there is a market gap present in the area where the entrepreneur wants to open the company. It might happen that targeted customer is unaware of the services; therefore, the creation of awareness along with launching the services is also essential. The selected place where the business will initially establish its organizations is Mayfair in London. The main reason behind choosing this area is this is one of the most famous places in London. Along with that, the regions have both official areas and easygoing places. The area consists of churches, hotels, retail, museums and galleries, business and another vital place which attracts tourist as well as daily worker peoples. Therefore, this would be an ideal place to open the enterprise, as it will attract all type of consumers. The business report highlights the significant aspects and information which would be needed while assessing the enterprise.
Discussion :
As mentioned in the study of Song et al., (2017), PESTEL analysis is a tool, which helps a marketer to study and scrutinize the macro environment of the particular region. The provided PESTEL analysis of the proposed electric scooter business plan will aid in getting the appropriate information for establishing the business in London.
PESTEL Analysis
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External environment |
Influence on the electric scooter business plan |
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Political – The region is politically stable and has a proactive government. Political stability is the major strength of the region; however, Brexit has affected the area (Dhingra, 2016). The nation maintains a healthy relationship with almost every influential country. |
It has been observed that the political condition of the region is very much stable, which a good sign for the business to establish its enterprise. In addition, after the success of the business, the company may open its outlets in the different region also as the nation has good relation with different countries. Nevertheless, the primary issue, which is currently prevailing in London, is the Brexit issue, which might affect the business a bit initially. |
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Economic – Having a sound economic condition is very important for any region (Eisenberg, 2019. The region has 5th largest economy in the world. The favourable economic situation even allows small market and business to flourish and grow. The region has a free market, which allows any company and business to establish quickly. |
The economic condition of the business will have a favourable impact on the business. As the region support a free and open market system, it is quite easy to open a new business idea in the region. The large population of the region aids in flourishing this type of small business ideas. Therefore, the electric scooter business plan will receive a favourable and positive response. |
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Social – The nation is one of the biggest customer markets. The population of the region is generally mixed as many migrants reside here. Therefore, the culture of the area is a mixed culture. Initially, it is quite challenging to understand the social aspects of the business because of the variety of people present here. Cost daily living is comparatively higher than in other regions. |
The socio-cultural aspects will not much influence the electric scooter business plan as the business is not based on a specialized culture rather on generalized service, which can be utilized by anyone. In addition, as the living cost of the region is quite expensive; therefore creating the business side, which would help people to rent EV scooters for short distance travelling, will be very much beneficial. |
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Technological – London has excellent access to technical aspects. This helps the region to work more efficiently and experiment in quality innovation. Innovation and new ideologies are being appreciated in the country, as there is no lack of technological components. The region also has effective laws regarding the usage of technical aspects. Businesses develop innovation and technology to provide a better solution to their consumers. |
These aspects act as a significant influencer and favourable factor for the business. The electric scooter business plan is mainly to start a rental based electronic vehicle scooter, which requires the implementation of new technology. Therefore, the region, which is already using high-tech technology, would be able to aid in opening this new enterprise. |
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Environmental – Any kind of economic activities influence the environment (Sarwar, 2017). However, the region has made an important improvement to reduce the negative influence on the business. The government has established specific rules, which are being abided by the business and industry to create less pollution. |
The electric scooter business plan is very much favourable to this aspect. The main aim of the business is to produce electric vehicles, which would be eco-friendly and will create very less pollution. This would help the business to expand even more in the near future. |
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Legal – The region follows a lot of rules and regulations as guided by the government of the region. There are different sets of rule for business, industries, citizens etc. it is very much necessary for the business and industries to follow the rule of the government for smooth functioning. |
The factor has a normal influence on the business. The business needs to follow every kind of rules, which is being authorized by the government. Therefore, this factor will not much affect the electric scooter business plan. |
The rental business service will face some of the competition, as there are already electric transports available for the people of the region. Electric motors, buses, train are very much common in London (Teng et al., 2016). Therefore, opening a new rental based EV scooter can face tough competition initially. The transport available in the region is also cheap. Nevertheless, the company can face competition in many different backgrounds. The direct competition of the company would be government-oriented transports, which are plying on the roads. One of the major competitors of the business would be cycled hire scheme of London. It is the most famous affordable and eco-friendly transportation system in the city. However, there are still some competitive advantages, which can be gained by the business. The hiring cycle, which is the main competitor of the business, is though affordable, however, requires effort from the consumer. The electric vehicles will be affordable as well as will require very less effort from the consumer. In addition, it will be the fastest way of reaching the desired destination in very fewer times. Therefore, these are the major competitive benefit, which would be availed by the business as compared to its major competitors.
Initially, the target market of the said electric scooter business plan will be people of Mayfair city. The stated place is chosen especially because of the population in that the areas, and for a reason, the city is famous for. The city is rich with office, official area, and other sightseeing areas. Therefore, it would be very much beneficial for the business to open its first outlet in this region. Therefore, all kind of people would be able to avail the services. The business would be able to target its audience in an effective way. Moreover, this will also be very much helpful for the consumer, as the rental EV scooter will assist them in reaching their desired place in very less time and in an affordable manner. Moreover, the office goers can rent it for reaching their nearby restaurant or client meeting in the fastest ways without paying much for the same. Moreover, it will also target the visitors of the region by providing them with maps and pamphlets of the region to visit their favourite places in affordable charges.
The essential principle of marketing comprises of Product, Price, Place and promotion that aid is preparing the marketing strategy of the electric scooter business plan (Harsono, 2016).
Product – The product that would be offered to the consumer would be a rental based EV scooters. The main aim of launching the said product is to render affordable yet eco-friendly transportation service to the consumer of London. The product will be launched for the targeted consumer of the selected region.
Price – The service is rental based. Therefore, the price of service will be based on the range of kilometres the electronic vehicle will be used. The price of the service will vary on the different variety of the electronic vehicle and on the time of the usage.
Place – The electric scooter business plan will be initially open on an offline basis in the selected area that is Mayfair city, London. The electric scooter business plan will have different parking areas created in the city where the electronic vehicle will be parked after the use. Primarily, the enterprise will have one main outlet and different parking lots.
Promotion – Promotion of the business would be done by adopting different means. Initially, the business enterprise can promote its electric scooter business plan through the newspaper, hoarding, pamphlets etc. In addition, the promotion of the business can be done through social media platform too (Nuseir et al., 2015), which would be very much effective. Creation of ads and websites regarding the electric scooter business plan will gain much attention. Additionally, giving a discount on the first ride to its consumer will also be an effective promoting idea.
Conclusion
The above business report is based on the proposed electric scooter business plan that is rental based EV scooter, which would be initiated by the entrepreneur. The electric scooter business plan would be established in the Mayfair city of London. However, to establish a new business, it is very much necessary to get the appropriate idea and knowledge of the targeted areas. The PESTEL analysis is being conducted on the said electric scooter business plan, which gives the appropriate idea about the region and other important aspects. The PESTEL analysis highlighted the crucial part, which was very much essential for the entrepreneur to get an idea about. While assessing the PESTEL and knowing the market trend of the region, it is, being observed that the region is very much favourable accepts innovation and new technological aspects easily. Moreover, the people of the region appreciate this new and innovated technique, which make their life easier.
In addition, it's being observed that there is not much competition in this sector; therefore, it is an opportunity for the company. Nevertheless, there are certain threats, which are being observed in this work. The company might face competition in this field, as there are already electric transports available in the region. Moreover, it might happen that the company may lack in producing much of scooter because of the lack of electric motors, which is quite expensive. Nevertheless, the business will be established by evaluating all the crucial aspects beforehand. The main aim of any entrepreneur is to expand its business and create employment. Therefore, if the people of London will accept the electric scooter business plan, it will further open its branch and outlets in other places too. In addition, the businesses will also start operating online too. This would help in easy access to the services and help the business to grow and develop even more.
Reference list
Dhingra, S., Ottaviano, G.I., Sampson, T. and Reenen, JV, 2016. The consequences of Brexit for UK trade and living standards.
Eisenberg, P., 2019. Financial Analysis of Primark Stores Ltd. with regard to a Stock Exchange Floatation (IPO). International Journal of Management, 7(1), pp.91-112.
Harsono, R., 2016. The Impact of Marketing Mix (4p's) on Customer Loyalty Towards Toyota Avanza. iBuss Management, 4(1).
Nuseir, M.T. and Madanat, H., 2015. 4Ps: A strategy to secure customers' loyalty via customer satisfaction. Electric scooter business plan International Journal of Marketing Studies, 7(4), p.78.
Sarwar, D., Ramachandran, M. and Hosseinian-Far, A., 2017, January. Disaster management system as an element of risk management for natural disaster systems using the PESTLE framework. In International Conference on Global Security, Safety, and Sustainability (pp. 191-204). Springer, Cham.
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-energy incineration industry in China. Renewable and Sustainable Energy Reviews, 80, pp.276-289.
Teng, F., Aunedi, M. and Strbac, G., 2016. Benefits of flexibility from smart electrified transportation and heating in the future UK electricity system. Applied Energy, 167, pp.420-431.
