Article
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Preserved in Portico This version is not peer-reviewed
A Critical Review of NIO’s Business Model
Version 1
: Received: 27 July 2023 / Approved: 28 July 2023 / Online: 1 August 2023 (04:03:52 CEST)
A peer-reviewed article of this Preprint also exists.
Pisano, A.; Saba, M.; Baldovino, J.A. A Critical Review of NIO’s Business Model. World Electr. Veh. J. 2023, 14, 251. Pisano, A.; Saba, M.; Baldovino, J.A. A Critical Review of NIO’s Business Model. World Electr. Veh. J. 2023, 14, 251.
Abstract
The present study reports a critical review of NIO's business model, considering the evolving landscape of the electric vehicle market and servicing. The objective of this study is to develop a comprehensive framework that facilitates the identification of key elements characterizing a company's business model and highlights ongoing transformations, crucial for adaptation and survival in a rapidly changing environmental context. Focusing on the case study of NIO, a relatively young Chinese original equipment manufacturer (OEM) specializing in high-tech electric cars, the research delves into the challenging scenario of the Chinese electric vehicle market, which has recently faced a bubble in 2023. The market proliferation, supply chain disruptions, and price wars triggered by Tesla have resulted in a survival struggle for numerous automotive startups, leaving larger companies with increasing market shares. Despite facing adversities, NIO managed to secure a promising segment, catering to premium-range battery electric vehicles (BEVs), establishing a competitive advantage through differentiation. By pursuing ambitious investments, the company aims to create economies of scope and achieve cost leadership, venturing into new market sectors and vertically integrating the production chain. Given NIO's agility in adapting to market conditions, aggressive entry into new segments, and a strategic vision for the future, it serves as an excellent candidate for testing and validating the proposed framework. The research sheds light on NIO's trajectory and offers insights into its potential for sustained growth in the dynamic electric vehicle market.
Keywords
electric mobility; market disruptions; competitive advantage
Subject
Business, Economics and Management, Other
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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