NIO: Battling Tesla with Battery as a Service (Case Study Sample)
Read: Case Problem "NIO: Battling Tesla with Battery as a Service", by Bhattacherya, S., and Bhattacherya, L., SMU108, 2021-12-12
Prepare a Managerial Report* structured as follows:
Task 1-1: Structure and present your paper as a Managerial Report, with a cover page, table of content, executive summary, main body, and appendices. Expected length of Assignment 1: up to 6 pages APA format, excluding cover page, table of contents, and appendices
Task 1-2: How does NIO BaaS business model connect to climate change, EV trends, and the circular economy?
Task1-3: What are the key features of the NIO BaaS offering? What are the advantages?
Task 1-4: What are some of the needs of the circular economy? How can NIO BaaS promote a circular economy?
Task 1-5: Compare NIO and Tesla’s strategies in combating the twin challenges of battery charging time and range anxiety to accelerate the diffusion of EVs. Which strategy do you think fares better in the long run and why?
Case Problem: NIO: Battling Tesla with Battery as a Service
Student’s Name
Institutional Affiliation
Case Problem: NIO: Battling Tesla with Battery as a Service
Question#1
The NIO Battery as a Service (BaaS) business model is centered on the concept of supplying EV battery packs for a monthly subscription that covers installation, maintenance, and replacement. This business model is consistent with the growing popularity of electric cars (EVs) and the need to address climate change (Bhattacharya & Bhattacharya, 2021). Furthermore, the BaaS concept is based on circular economy ideas, in which resources are used and reused in a sustainable manner. The BaaS concept has the ability to remove EV adoption constraints such as high initial purchase costs and a lack of infrastructure. NIO makes EVs more affordable and accessible by offering batteries for a monthly price. Furthermore, the BaaS model encourages users to recycle their batteries, which lowers waste and helps to end the circular economic loop.
However, there are a number of risks and issues associated with the BaaS approach. For example, it is unknown how NIO will maintain the quality of its batteries over time, or how it would respond to customer demand if the number of EVs on the road suddenly increases (Bhattacharya & Bhattacharya, 2021). Furthermore, the BaaS model is dependent on users returning their batteries at the end of their lease, which may be impossible if the batteries are damaged or degraded. Overall, NIO, its customers, and the environment stand to benefit from the BaaS model. However, in order to ensure long-term success, it is critical to monitor the obstacles and dangers connected with this business strategy.
Question#2
NIO's Battery as a Service (BaaS) product is a novel and innovative approach to lease electric vehicle batteries (EVs). The following are the primary elements of the BaaS offering:
1. Monthly subscription and upgrade requests: NIO allows its customers to subscribe monthly to access its batter services and to request for battery upgrade. Essentially, NIO provide its customers with the opportunity to request for battery upgrade.
2. Battery leasing: NIO leases batteries, which is a more cost-effective and environmentally friendly choice than
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