Sustainable Electric Scooter
The business concept aims to cater to the increasing demand for sustainable transportation alternatives in metropolitan areas in the UK. This individual rationale seeks to introduce and substantiate the novel business idea of an environmentally-friendly electric scooter. The idea delineates the necessity that it caters to, its evolution and approach towards market penetration, anticipated schedule and expenses, envisaged return on investment, plausible hazards, and corresponding measures to avert them. The growing concerns regarding environmental impact and the imperative to curtail carbon emissions have resulted in a robust exigency for alternative transportation modes that are environmentally sustainable, productive, and facile. The proposed concept addresses this requirement by implementing an electric scooter-sharing system in prominent urban centres.
Need Addressed
Introducing a sustainable electric scooter is vital in promoting sustainability in the transport industry, which is among the UK’s highest carbon emission sectors. Further, Scharding (2018, p.20) discusses effective, ethical strategies for mitigating ethical concerns by proactively addressing present and future concerns. The escalating apprehensions regarding climate change and air pollution have resulted in a substantial need for sustainable substitutes to traditional modes of transportation. Busby et al. (2020, p.14) outline the benefits of electric scooters in offering sustainable transport to minimise carbon emissions in the urban population in the UK. For instance, the business dealing in electric scooters has several advantages, like less tax than those coping with carbon fuels. In addition, electric scooters are typically characterised by low maintenance requirements, thereby minimising the associated maintenance expenses. Also, recharging electric scooters has a negligible impact on the overall electricity expenses.
Development and Market Entry
A sustainable electric scooter shall be formulated through an all-encompassing research and development procedure, with emphasis on crucial elements like battery technology, range, charging infrastructure, and safety features. Kramer (2022) indicates that electric scooters use technology to create durable, user-friendly, and appealing products that meet diverse consumers worldwide. Adopting strategic partnerships can be effective in the market entry process to remain successful. Bauerle (2018, p.12) reports a seller who wishes to broaden the scope of their jewellery business by venturing into the global market. The seller contemplates recruiting skilled personnel from the target countries to achieve this objective. Establishing a robust distribution network is imperative to guarantee the widespread availability and accessibility of scooters in various urban centres throughout the United Kingdom. Also, marketing initiatives will be implemented to enhance knowledge and endorse the advantages of utilising eco-friendly electric scooters.
Timeline and Costs
The projected timeline for the electric scooter-sharing service deployment is anticipated to range from 12 to 18 months. In the first half-year, our primary objectives will entail conducting market research, engaging in partnership negotiations, and creating the mobile application. The upcoming half to one year will involve the service’s implementation in specific urban areas, expansion of business activities, and promotional initiatives. The estimated expenses encompass market research outlays, fleet procurement and upkeep costs, mobile application creation, operational establishment, and marketing disbursements. The estimated expenses incurred during these phases encompass research and development outlays, prototyping expenditures, manufacturing setup costs, distribution network establishment expenses, marketing campaigns, and operational expenses. The projected cost for the entire project is estimated to be £5 million.
Investment and Return
Funding of £5 million is being sought to initiate and expand the eco-friendly electric scooter enterprise. Further, the investment undergoes several processes like development, manufacturing, advertising, and initial operational cost. The business project’s return on investment will be realised in 3 years, which is forecasted to be approximately 30% of annual revenue. Investors can anticipate a return on their investment via revenue streams from scooter sales, strategic alliances, and prospective licencing arrangements. With the expanding market for sustainable transportation solutions, the enterprise endeavours to secure a substantial portion of the market and position itself as a prominent supplier of electric scooters in the United Kingdom.
Potential Risks and Mitigation
Sustainable electric scooters present considerable promise; however, it is crucial to contemplate and address any potential hazards. An identified potential hazard pertains to regulatory obstacles that necessitate compliance with dynamic regulations and licencing prerequisites for electric scooters. Mitigating risk entails active engagement with regulatory bodies, implementing proactive compliance measures, and advocating for favourable laws through lobbying efforts. An additional peril pertains to the escalation of competition from both established and emerging market participants who provide electric scooters. The mitigation of competition can be achieved through continuous product improvement, differentiation using superior design and features, and effective marketing strategies. An additional hazard is infrastructure constraints, encompassing inadequate charging infrastructure in specific regions. The constraints can be alleviated through cooperation with regional governing bodies, commercial enterprises, and associations to establish a comprehensive charging infrastructure. Finally, the rapid pace of technological advancements poses a potential risk within the electric vehicle sector. According to Gallagher (2016), technological advancement facilitated by creativity and innovation can enable businesses to surmount obstacles. This implies that businesses can leverage creativity and innovation to overcome challenges. The sudden technological advances can be alleviated through persistent observation of industrial patterns, allocation of resources towards research and development, and cultivation of ingenuity within the enterprise.
In conclusion, the paper discusses a sustainable electric scooter concept by giving a compelling investment opportunity by catering to the demand for environmentally friendly transportation options in the UK market. The business endeavours to positively impact the environment by implementing a clearly defined plan for development and market entry, projecting a timeline and associated costs, anticipating a return on investment, and devising strategies to mitigate potential risks. The business endeavoured to position itself as a prominent electric scooter-sharing industry player by proficiently managing potential risks and providing an exceptional user experience.
Bibliographies
Busby, A., Bond, S., Wiginton, L. and Williams, L. 2020. Public Attitudes to the Use of E-scooters in the UK Report. [online] Available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1024153/public-attitudes-to-the-use-of-e-scooters-in-the-uk-report.pdf.
Dias, G., Arsenio, E. and Ribeiro, P. (2021). The Role of Shared E-Scooter Systems in Urban Sustainability and Resilience during the Covid-19 Mobility Restrictions. Sustainability, 13(13), p.7084. doi https://doi.org/10.3390/su13137084.
Gallagher, K., 2016. Essential study and employment skills for business and management students. Oxford University Press.
Josh Bauerle, C.P.A., 2018. Accounting QuickStart Guide: The Simplified Beginner’s Guide to Financial & Managerial Accounting For Students, Business Owners and Finance Professionals. ClydeBank Media LLC.
Scharding, T., 2018. This is Business Ethics: An Introduction. John Wiley & Sons.
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