Harrison Energy, a major US power utility, seeks to enter the EV market. The case guides candidates through determining optimal entry timing (2023, when EV TCO equals ICE TCO), selecting value chain components (batteries, charging stations, software, power generation—excluding vehicles), and choosing between building capabilities or acquiring competitors within a 5-year payback constraint. The recommended strategy yields $550M annual profit by entering 5 segments through acquisition or build strategies.
Key Insights:
- Market entry timing should be driven by external readiness (demand conditions) rather than internal readiness alone—TCO parity is the inflection point
- Value chain segmentation requires filtering by both financial viability (payback period) and strategic fit (brand alignment, synergies)
- Large incumbents have competitive advantages in distribution, customer relationships, and supplier power that specialist competitors lack
- The 5-year payback constraint eliminates the largest opportunity (vehicles at $20-40B) due to poor ROI and brand misalignment
- Strategic entry into complementary segments (batteries + charging + software) creates a holistic value proposition targeting fleet electrification