MBA PROPOSAL.5 - OPPORTUNITY RECOGNITION IN THE GREENING OF THE AMERICAN AUTOMOBILE INDUSTRY.

BUS 895: PRELIMINARY PROJECT PROPOSAL

OPPORTUNITY RECOGNITION IN THE GREENING OF THE AMERICAN AUTOMOBILE INDUSTRY.

Revised Questions
Can the study identify a niche that has not been served, detect an improvement in an existing product, or discover an opportunity for a breakthrough product (Allen 2003) in the hybrid electric vehicle automotive segment?

Why are consumers buying hybrids?
The hybrid electric vehicle market segment has been for the past five years and is projected to be the fastest growing area in the greening of the automobile industry for the next 10-20 years. Some writers had emphasized that gas mileage was the driving consumer value behind this phenomenon. In 2002, a survey conducted by the Oregon Environmental Council of 596 hybrid consumers uncovered three new values that ranked higher than gas mileage.

1) To pollute the air less 89%
2) Top emit less climate-changing CO2 89%
3) The technology appealed to me 73%
4) To save money on gasoline 71% (Hagerbaumer 2002)

In 2004, a growing shortage of pure hybrids that run as zero emission electric vehicles at slow speeds supported the survey’s findings.

Why can’t Toyota and Ford make pure hybrids fast enough?
1) Software (running the over 80 computerized controllers)
2) Wiring (connecting the system components)
3) Hardware (computer controllers for braking and propulsion)

There’s an estimated $1 trillion back log of unfilled orders for pure hybrids. Preliminary research shows that pure hybrid manufacturers now value systems management. Toyota filed over 300 patents and Ford filed for over 100 to build their pure hybrids. Ford licensed over 20 software patents from Toyota to manage the electrifying of the vehicle.

Opportunities?
• Supplying consumer driven zero emissions pure hybrid vehicles
• Servicing manufacturer value driven systems integration solutions
• Researching and Developing innovative value driven gasoline-hydrogen hybrid pure electric systems to bridge the gap from hybrids to hydrogen fuel cell vehicles

Research: the research methods to be used consist of interviews, a literature review and collecting information from different business organizations' web sites. Sources include government/industry statistics, secondary data and publicly available data. The search will also include interviewing five experts in the field whose identities will not be revealed. The outcome of the project will be a feasibility analysis and report.
Bibliography


50 assorted articles including a couple journal studies and many data/webbased articles
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China’s auto production concentrated in 10 plants (2004, January 24). Xinhua General News Service. Retrieved Augsust 6, 2004, from http://0-web.lexis-nexis.com.opac.sfsu.edu/unvierse/printdoc
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Driving change (2004, September 2). Economist. Retrieved September 27, 2004, from http://www.economist.com/printedition/displayStory.cfm?Story_id=3127206
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Ford’ first hybrid SUV delivered (2004, September 16). The San Diego Union-Tribune. Retrieved September 27, 2004, from Motor Trend, http://motortrend.com/features/news/112_news60/index.html
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