NIO
We will be focusing on the company NIO and the appraisal in all 4 contexts.
Strengths:
- Having an extensive product portfolio, NIO could expand to the customer base, improving sales techniques and filling the gap of losses from different product categories from other beneficial products that have outstanding profits.
- A financially stable and healthy environment could be used to improving the company with investments.
- The sound and highly advanced product that consumers want creates customer loyalty.
Weaknesses:
· The shortage of products is due to poor inventory management, which will cause the company to lose sales.
· There are many delays in introducing products that will waste time and money in showcasing the new goods.
· Too much stress for consumers as there is too much demand in the company with fewer workers will result in less productivity.
Opportunities:
· NIO's products in the EV sector will gain lots of brand popularity and profits amongst the customers because, like Tesla, NIO is one of the matchups against it, which will cause more growth for the business to expand.
Threats:
· Many competitors are against NIO, which could slow the progress of growth in the EV sector.
Social Context:
NIO is an electric car in the EV sector, for individuals who don't want to cause climate change are the best customers for this type of business. This type of electric vehicle could reduce carbon footprint, which environmentalists love, saving the planet from any more damages. NIO vehicles save money for each individual who owns their products because they tend to save money on not spending on petrol to power the vehicles because electricity powers the vehicles, which is a far more advanced technology that people admire the new tech in the market. NIO vehicles are premium vehicles that customers get to enjoy much more than petrol-fueled vehicles, which release harmful gasses because they run smoothly without loud sounds that the engine makes because NIO vehicles run on battery which runs smoothly on the road compared to any other vehicles.
NIO gives customers choices to purchase batteries for electric power vehicles. Another alternative is rent, which offers more options for people who save money or live luxuriously. Their cars are matched with leather on the seats which gives a stylish look which customer enjoy, riding in a high-quality product which people admire is what people tend to accomplish in life. Consumers are satisfied with the products that NIO provides as they make life much better. When customers have questions or doubts on how to function the vehicles, NIO has a website that is opened 24/7 to accommodate any problems that the consumers face, which gives the company a good name because they tend to care for their customers. NIO lets individuals save money, have feedback for any reason, and update their new products or services on their social media platforms, which helps understand customers to be edited and feel connected, leading to brand loyalty.
Ecological Context: When we look at the ecological aspect that NIO produces comparatively low long-term emissions. The company makes electric vehicles which itself reduces a lot of emissions like fossil fuels, making different parts and also replacing them. Their cars only have a few parts as compared to a one that works on petrol or diesel which gives them the advantage of being more sustainable. There are always debates on the battery for electric cars that causes a lot of emissions to be released in the atmosphere. NIO is ahead as compared to other companies because of their more viable processes in making the products for the consumers. It is also to be noted that their battery production process for the car in China is more as compared to non-electric vehicles[1]. When we see the short run, the emissions produced by NIO might exceed from some of the other petrol and diesel automobile companies but when we compare them in the long run, there is a remarkable difference and NIO clearly leaves all the non-electric car manufacturers behind[2]. Moreover, when we see talk about the battery another question comes in mind, where will the battery be disposed once it has been damaged or replaced? The answer to this is the supplier that is used by NIO which produces those batteries in a unique manner that it is easy to be recycled and is not accounted to the waste[3]. Also, NIO claims that the battery is replaceable within 3 minutes which saves a lot of time and the cost of going to a mechanic[4]. Another positive impact that NIO put on the ecology is the NIO Houses (Showrooms). These allow the customers to come in and have an experience like they are at home and tell the people vesting more about their brand[5]. They also tell how they are creating a sustainable future and how will they achieve it[6].
Political Context:
William Li of NIO plans to produce environmentally friendly cars that only run vehicles through electricity to ensure that customers save the environment. He also wants individuals to feel a luxurious vehicle being driven on the road, which satisfies their purchase from NIO electric vehicles. The electric vehicles that NIO advertises promote other car companies to replicate the idea of electric vehicles, which is becoming more popular in today's generation, which is in high demand in the market that most products of NIO tend to get sold quickly. Other companies tend to follow the same experience and profit in the early stage, where not many people have EV vehicles. Hence, the market has a high rate of return amongst the profits. Governments from different countries like Japan, England, and some parts of America are banning petrol-fueled vehicles and promoting electric vehicles like NIO, which causes people to purchase the products because the government also encourages individuals to go environmentally friendly, which NIO has in its vehicles.
As the new president of America, Joe Biden is funding the EV sector billions of dollars which will boost brand recognition and promote NIO to have more customers based in the USA, which could expand and grow the company which will gain revenue better their products. In the state of NIO right now, customers love the designs and function of the vehicle, which does a good performance for individuals who have driven one of NIO’s vehicles. With that type of feedback from customers NIO will get more sales and profit in the long run as their company brand is getting promoted from word-of-mouth.
Economic Context:
Looking at NIO through a economic mindset, we see a few aspects in which the money they make and are investing is in a creative manner. When we look at the annual report of the company for the year of 2020, NIO’s revenue increased by almost 9 million thousand RMB. The company has been making losses since its start in from the year 2018, but their losses have been decreasing considerably because of the investment they are making for the sustainability and the experience that they want to give to their consumers.
Another aspect we can look at is the cost that consumers will bear when they own a car and the time that they keep their car before selling it. A report by IHS Automotive tells that an American keeps a new car for an average of 6.5 years[7]. The cars that work with fossil fuels have many costs including the costs of oil changes and the cost of using the non-renewable sources of energy. NIO uses less parts in their car in order to cut on these costs. Moreover, as they have electric vehicles so there is no use of fossil fuels which would save them in the long run. NIO also makes premium cars at an affordable rate. Suppose a person keeps his car for 5 years and bought it for a price of $30,000. in the next 5 years they would save the cost of gas fueling and some of the maintenance costs which would reap them some savings as they did not have to incur those costs.
Work Cited
Digges, Charles. “Massive Biden infrastructure plan gives huge boost to electric cars.” 2021. https://bellona.org/news/transport/2021-04-massive-biden-infrastructure-plan-gives-huge-boost-to-electric-cars.
Ellsmoor, James. n.d. “Are Electric Vehicles Really Better For The Environment?” Forbes. Accessed April 8, 2021. https://www.forbes.com/sites/jamesellsmoor/2019/05/20/are-electric-vehicles-really-better-for-the-environment/.
Gorzelany, Jim. n.d. “Passing The Test Of Time: Cars Owners Keep For A Decade Or Longer.” Forbes. Accessed April 8, 2021. https://www.forbes.com/sites/jimgorzelany/2017/01/04/passing-the-test-of-time-cars-owners-keep-for-a-decade-or-longer/.
“Interesting Nio Sustainability Score in 2020 · Luvioni.” n.d. Accessed April 8, 2021. https://www.luvioni.com/interesting-nio-sustainability-score-in-2020/.
“NIO HOUSE: Car Manufacturer Nio Launches a New Type of Concept.” 2020. Innovation Is Everywhere (blog). February 22, 2020. https://innovationiseverywhere.com/nio-house-car-manufacturer-nio-launches-new-type-concept/.
Smith, Peter. n.d. “THE TRADABLE: The story of William Li, The Founder of Nio and Prophet of Chinese Electric Car Industry.” 2021. https://thetradable.com/business/the-story-of-william-li-the-prophet-of-chinese-electric-car-industry#The%20Story%20of%20NIO .
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