Here are the instructions:
Background:
The transition to EV is one of the most talked about business trends today. While Tesla has long been the leader, there are other EV startups entering the market and most of the legacy auto makers are getting into the EV game as well. You work for an investment advisory firm that serves large institutional investors like pension funds and hedge funds. You have been asked to analyze the EV industry and recommend a single company that is most likely to “win” in the next 5-10 years. Your clients operate on longer time horizons and want to invest now in the company they believe will be the industry leader 5-10 years from now.
Instructions:
Your task is to analyze the EV industry and make an investment recommendation for one of the primary competitors in the business. You should do a five forces analysis on the industry as a whole, then complete a SWOT analysis for at least four of the main competitors in the industry. Then analyze your findings and explain your recommendations (what company you chose and why).
Deliverables:
Here’s how you can go about this:
Step 1: Research and Analysis
To complete this assignment, you will need to conduct extensive research on the EV industry and the companies within it. You can start by reviewing company websites, financial reports, and news articles about the industry. Websites like cnbc.com, inc.com, forbes.com, wsj.com, and foxbusiness.com are a good place to start. When you visit the company website, scroll down to the bottom navigation menu and look for “Investors”. That will take you to the investor relations site where they post their annual reports and other news.
Step 2: Five Forces Analysis
Next, conduct a five forces analysis on the EV industry. This should include an analysis of the bargaining power of suppliers, bargaining power of buyers, threat of new entrants, threat of substitutes, and competitive rivalry. This analysis framework is covered in the book. This should be the biggest part of your presentation. The industry dynamics are a huge factor given the rapid growth projections but limited supply of crucial materials required for EV batteries plus the limits of our electrical power grids. Your SWOT for each company will build upon what you present in regards to the industry overall and your five forces analysis.
Step 3: SWOT Analysis
Using the information you have gathered, complete a SWOT analysis for each of the primary competitors in the EV industry. This should include identifying their strengths, weaknesses, opportunities, and threats. You can use a template to organize your analysis and make it easier to compare the companies.
NOTE: For each company, list three items for each letter of SWOT. Be sure to include specifics – nothing generic. Also, provide citations for your research. An example of generic: “Starbucks has a lot of stores”. An example of specific: “Starbucks has 17,000 US stores and 38,000 stores globally, making it the largest coffee chain in the world.” Then I would cite where I got the number of stores.
Step 4: Investment Recommendation
Based on your analysis of the EV industry and the companies within it, make an investment recommendation for one of the primary competitors. You should provide a clear rationale for your recommendation, including a discussion of the company’s strengths and weaknesses, and how they align with the current trends in the industry.
- Completion of a comprehensive five forces analysis and summary of the industry.
- Completion of a thorough SWOT analysis for each of the primary competitors in the EV industry.
- Clear and well-supported investment recommendation for one of the primary competitors in the industry.
- Concise and effective 3-4 minute presentation of your findings and recommendation.
- Use of appropriate visual aids to support your presentation.
- A citation slide at the end of PPT presentation. I don’t care about citation format, but . . . be sure all the links works.