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Medium Market Entry

Electro Chargers

#Automobiles #Infrastructure #Electric Vehicles
ProHub Comment

This market entry case requires candidates to balance quantitative demand analysis (number of swappable EVs) with qualitative factors (competition, policy support, fuel economics). The solution demonstrates how to systematically eliminate markets and rank remaining options using multiple criteria, while incorporating company-specific constraints like operational costs and capital requirements.

Estimated Time 15 minutes
Difficulty Medium
Source Wharton
50 / 100
Your client, Electro Chargers, is a manufacturer of Electric vehicle battery swap stations that are used to house batteries for swappable electric vehicles. Rather than charging vehicles at charging stations, customers come to the stations when their batteries get depleted (<10% charge) and swap their vehicle’s batteries with batteries from the station. Electro Chargers is considering entering a new city to setup its chargers and Rebecca, the CEO wants our support in deciding which city to enter. She also wants our support in estimating the amount of fixed investment the firm would require until 2030 to setup a battery swapping network in the city.

Clarifying Information

Objective - To shortlist the city to enter based on potential number of EVs in the city (demand for the chargers) and estimate fixed investment required until 2030 Geography - Electro Chargers is a US-based company and already has operations in Boston and have shortlisted 5 cities - New York, Washington DC, Seattle, Miami and Atlanta. Business - Swap stations are an alternative to traditional charging stations or home charging setups. The time taken for customers is similar to the time taken to refuel at gas stations. Technology - These batteries are only suitable for 4-wheeler passenger cars with swappable batteries. Batteries and interoperable and can be used with any swappable EV.