InnoVentum and the Norwegian EV Charging Station Market: A Case Study

Jeanette Desiree Johansen

Student thesis: Master thesis

Abstract

Abstract: InnoVentum is a Swedish start-­‐up that has developed a new and innovative charging station for electric vehicles (EVs) named the Giraffe. The Giraffe offers several value propositions, such as ensuring that the EV is running on renewable electricity as the power is generated by solar and wind. Norway is considered an attractive market for InnoVentum, as it has more EVs per capita than any other country in the world. Due to government incentives the number of EVs is growing rapidly and the need for charging infrastructure is increasing as well. By applying the Case Study Method this thesis investigates whether or not InnoVentum should enter the seemingly promising Norwegian EV charging station market with its charging station-­‐ the Giraffe. In order to answer the overall problem statement, this study seeks to uncover the opportunities and threats that are present on the Norwegian charging station market, and what InnoVentum’s strengths and weaknesses are. By applying the PEST and Porter’s Five Forces frameworks opportunities and threats are identified, and RBV sheds light on InnoVentum’s strengths and weaknesses. Finally all factors identified are evaluated by utilising the SWOT framework. Market surveys handed out to EV owners, companies and municipalities as well as in-­‐depth interviews with people in the EV and EV charging station business serve as important sources in this paper, in addition to a range of secondary sources. The research findings indicate that there are a number of opportunities present on the Norwegian charging station market that may be attractive for a charging station provider: There is a need for charging infrastructure, consumers have high disposable income, there are few competitors, there are no products similar to the Giraffe on the market and there are housing areas that lack connection to the electricity grid. There are however also significant threats on the market, such as well established competitors who have acquired brand recognition and reputation, the very low price on electricity in Norway and the fact that most electricity in Norway comes from Norwegian hydropower. In addition, the surveys developed for this study show that potential target groups are not interested in purchasing the Giraffe mainly because of its high price and easy access to the much cheaper substitute of green electricity. Furthermore, the research shows that InnoVentum and the product the Giraffe might not be able to successfully take advantage of the opportunities as the company has limited resources. The study concludes that an entry into the Norwegian charging station market is not presently recommended. Potential future opportunities are briefly presented, but these need to be researched further.

EducationsMSc in International Marketing and Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2014
Number of pages102