DOI QR코드

DOI QR Code

Global Strategy Entry Mode Development: Case study of Electric Vehicle Market in Africa

  • Anyim Mokom Brenda (School of Industrial Management; Korea University of Technology and Education(KOREATECH))
  • Received : 2023.04.07
  • Accepted : 2023.05.11
  • Published : 2023.06.30

Abstract

This research report cuts across management sciences (market strategy entry mode development) and innovative technology (Electric Vehicle (EV)) alongside measures to submerge global warming. The development of a successful entry mode for the electric Vehicle into the African continent is the main objective of the study. The study focuses on an analysis of how electric car manufacturers can enter the African market in other to achieve global sustainability and social responsibility. The methodology is based on identifying the factors that affect the choice of an entry mode into international markets by multinational companies desiring to leverage their revenue through a foreign market. It also offered a quantitative approach that can support the economic and sustainability entry mode model for EVs and a qualitative approach of Porter's five forces analysis as an entry mode coaching tool for EVs. These proxies are used in quite a wide range of multivariate statistical methods (trend analysis, ratio, and probability, comparative t-test technique, auto-regression, and ordinary least square technique). The result acknowledges joint venture and setting of the plant (physical presents) as the optimal entry mode in African EV market. It requires the EV manufacturers a tire-free emission innovation technology in order to optimize the global sustainability initiative.

Keywords

References

  1. 2022 Electric vehicles market intelligence report. Available online: https://www.westerncape.gov.za/110green/files/atoms/files/EV_MIR_29_3_22_FINAL.pdf (accessed on 10.04.2023).
  2. Danner, D., Seidemann, J., Lechl, M., de Meer, H. Flexibility disaggregation under forecast conditions. In the Proceedings of the Twelfth ACM International Conference on Future Energy Systems (e-Energy 21), USA, Association for Computing Machinery, New York, 12th of April 2021, pp. 27-38.
  3. 2022 Electric vehicles market intelligence report. Available online: https://green-cape.co.za/wp-content/uploads/2022/10/EV_MIR_9_4_21-3.pdf (accessed on 15.04.2023).
  4. Danner, D., & de Meer, H. Quality of service and fairness for electric vehicle charging as a service. Energy Inform 4 (Suppl 3), 2021, p. 16.
  5. Collett K. A., Hirmer S. A., Dalkmann H., Crozier C., Mulugetta Y., McCulloch M. D..Can electric vehicles be good for Sub-Saharan Africa? Energy Strategy Reviews, Volume 38, 2021, pp. 100-122, https://doi.org/10.1016/j.esr.2021.100722
  6. Khan T., Kohli S., Yang Z., and Miller J. Zero-emission vehicle deployment: Africa. ICCT Briefing. The international council of clean transportation. 2022. Available online: https://theicct.org/wp-content/uploads/2022/04/africa-hvs-zev-deploy-africa-apr22.pdf (accessed on 15.04.2023)
  7. Everything you need to know about African EV manufacturing, 2022. Available online: https://www.energyforgrowth.org/memo/everything-you-need-to-know-about-african-ev-manufacturing/ (accessed on 15.04.2023)
  8. Omahne, V.; Knez, M.; Obrecht, M. Social aspects of electric vehicles research-Trends and relations to sustainable development goals. World Electr. Veh. J. 2021, vol. 12, p. 15.
  9. Ghasri, M.; Ardeshiri, A.; Rashidi, T. Perception towards electric vehicles and the impact on consumers' preference. Transp. Res. Part D Transp. Environ. 2019, vol. 77, pp. 271-291. https://doi.org/10.1016/j.trd.2019.11.003
  10. International Energy Agency. Global EV Outlook 2021: Accelerating Ambitions Despite the Pandemic. 2021. Available online: https://iea.blob.core.windows.net/assets/ed5f4484-f556-4110-8c5c-4ede8bcba637/GlobalEVOutlook2021.pdf (accessed on 20 November 2022).
  11. Eskom. Understanding Electricity. 2021. Available online: http://www.eskom.co.za/AboutElectricity/ElectricityTechnologies/Pages/Understanding_Electricity.aspx (accessed on 20 November 2022).
  12. Electromaps. Charging Station on South Africa. 2021. Available online: https://www.electromaps.com/en/charging-stations/south-africa (accessed on 26 August 2022).
  13. Krupa, J.S.; Rizzo, D.M.; Eppstein, M.J.; Lanute, D.B.; Gaalema, D.E.; Lakkaraju, K.; Warrender, C.E. Analysis of a Consumer Survey on Plug-In Hybrid Electric Vehicles. Transp. Res. Part A Policy Pract. 2014, vol. 64, pp. 14-31. https://doi.org/10.1016/j.tra.2014.02.019
  14. Lehohla, P. Census 2011: Provincial Profile: Gauteng; Statistics South Africa: Pretoria, South Africa, 2014. Available online: http://www.statssa.gov.za/publications/Report-03-01-76/Report-03-01-762011.pdf (accessed on 23 November 2022).
  15. Bonges, H.A.; Lusk, A.C. Addressing electric vehicle (EV) sales and range anxiety through parking layout, policy and regulation. Transp. Res. Part A Policy Pract. 2016, vol. 83, pp. 63-73. https://doi.org/10.1016/j.tra.2015.09.011
  16. Ardakanian, O., Rosenberg, C., Keshav, S. (2013). Distributed control of electric vehicle charging In: Proceedings of the Fourth International Conference on Future Energy Systems (e-Energy '13), Association for Computing Machinery, Berkeley, 2013, pp. 101-112.
  17. Electric vehicle start-up in Africa 2023. Available online: https://startuplist.africa/industry/electric-vehicle (accessed on 20 April 2023).
  18. Hardman, S.; Shiu, E.; Steinberger-Wilckens, R. Comparing high-end and low-end early adopters of battery electric vehicles. Transp. Res. Part A Policy Pract. 2016, 88, pp. 40-57. https://doi.org/10.1016/j.tra.2016.03.010
  19. StatisticsHowTo. Cronbach's Alpha: Simple Definition Use and Interpretation. 2014. Available online: https://www.statisticshowto.com/cronbachs-alpha-spss/ (accessed on 12 November 2022).
  20. Bayram, I.S., Tajer, A., Abdallah, M., Qaraqe, K. Capacity planning frameworks for electric vehicle charging stations with multiclass customers. IEEE Trans Smart Grid, vol. 6(4), 2015, pp. 1934-1943. https://doi.org/10.1109/TSG.2015.2406532
  21. Zishan A.l., Moghimi A. M., Ardakanian, O. Reputation-based fair power allocation to plug-in electric vehicles in the smart grid In Proceedings: 2020 ACM/IEEE 11th International Conference on Cyber-Physical Systems (ICCPS), IEEE, Sydney. 2020. pp. 63-74.
  22. Alfaro, A.L., Bizuneh, G., Moore R., Ueno, S., & Wang, R. Microeconomics of Competitiveness, Automotive Cluster. Kennedy School of Government: Harvard Business School, 2012, South Africa.
  23. Electric Vehicle industry statistics 2014 - 2021 (African region). Available online: https://statista.com (last accessed on March 2023)
  24. Africa's EV future. Energy for growth hub. 2023. Available online: https://www.energyforgrowth.org/projects/africas-ev-future/(last accessed on March 2023)
  25. Falchetta, G., Noussan M., and Hammad A. T. Comparing paratransit in seven major African cities: an accessibility and network analysis, Journal of Transport Geography, vol. 94, 2021, pp. 103-131. https://doi.org/10.1016/j.jtrangeo.2021.103131
  26. Collett, K. A., Hirmer, S. A. Data needed to decarbonize paratransit in Sub-Saharan Africa. Nature Sustainability, vol. 4(7), 2021, pp. 562-564. https://doi.org/10.1038/s41893-021-00721-7
  27. Boutueil, V., Lesteven, G., Nemett, L. Toward the integration of paratransit in transportation planning in African cities. Transportation Research Record, vol. 2674(9), 2020, pp. 995-1004. https://doi.org/10.1177/0361198120933270
  28. Ndibatya, I., Booysen, M. J., Coetzee, J. Mapping the informal public transport network in Kampala with Smartphones: Making sense of an organically evolved chaotic system in an emerging city in Sub-Saharan Africa. 35th Southern African Transport Conference, 2016.
  29. Insights, D. A. Navigating the African Automotive Sector: Ethiopia, Kenya and Nigeria, 2016.
  30. Yang, Y. Two sides of the same coin: consequential life cycle assessment based on the attributional framework. J. Clean. Prod., vol. 127, 2016, pp. 274-281. https://doi.org/10.1016/j.jclepro.2016.03.089
  31. Virgillito, A., Polidoro, F. Big Data Techniques for Supporting Official Statistics: The Use of Web Scraping for Collecting Price Data. In I. Management Association (Ed.), Web Services: Concepts, Methodologies, Tools, and Applications. 2019, pp. 728-744.
  32. Sullivan G, M., Sargeant, J. Qualities of qualitative research: part I. J Grad Med Educ. vol. 3(4), 2011, pp. 449-452. https://doi.org/10.4300/JGME-D-11-00221.1
  33. Singh, K. Quantitative Social Research Methods. SAGE, New Delhi. 2007.
  34. Ronghua, O. Basic Inquiry of Quantitative Research. International. Journal of Educational Science vol. 1, 2009, pp. 19-32. https://doi.org/10.1080/09751122.2009.11889972
  35. Nenty, J. Writing a Quantitative Research Thesis. International Journal of Educational Science, vol.2, 2009, pp. 34-45. https://doi.org/10.31901/24566322.2009/01.01.04
  36. Ayaburi, J., Bazilian, M., Kincer, J., Moss, T. Measuring "Reasonably Reliable" access to electricity services. The Electricity Journal, vol. 33(7), 2020, pp. 106-828. https://doi.org/10.1016/j.tej.2020.106828
  37. Brito, F. P., Martins, J., Pedrosa, D. D. R., Monteiro, V. D. F., Afonso, J. L. Real-life comparison between diesel and electric car energy consumption. 2013.
  38. Knobloch, F., Hanssen, S. V., Lam, A., Pollitt, H., Salas, P., Chewpreecha, U., ... & Mercure, J. FNet emission reductions from electric cars and heat pumps in 59 world regions over time. Nature sustainability, 3(6), 2020, pp. 437-447. https://doi.org/10.1038/s41893-020-0488-7
  39. Anenberg, S., Miller, J., Henze, D. A. V. E. N., Minjares, R. A global snapshot of the air pollution-related health impacts of transportation sector emissions in 2010 and 2015. International Council on Clean Transportation: Washington, DC, USA. 2019.
  40. Shvetsova O, Bialevich A, Kim J, Voronina M. Behavioral Model Deployment for the Transportation Projects within a Smart City Ecosystem: Cases of Germany and South Korea. Processes. vol. 11(1), 2023; p.48.
  41. Shvetsova, Olga A., and Sang-Kon Lee.. "Living Labs in University-Industry Cooperation as a Part of Innovation Ecosystem: Case Study of South Korea" Sustainability 13, no. 11, 2021, pp. 57-93. https://doi.org/10.3390/su13115793