Tuesday, October 13, 2009

Product Management Strategies - Reva Electric Car


Recently Reva Electric Car Company announced a joint ventire with GM to make electric cars. Under the plan GM will sell all electric version of Chervolet Spark in India & abroad. Under this agreement, Reva will provide the electric systems & GM will provide the automotive platform and market the cars through GM sales network of dealers.

If everything goes through as per plan - i.e., gets approval from GM headquaters in the US, then this will be a very significant victory for Reva Electric company. Though Reva electric cars have been around in Bangalore for last 10 years ( and my wife happens to own one), Reva has seen limited success in Indian markets. This tie-up with GM will give a major boost to Reva in terms of customer acceptance for its technology.
The current agreement sounds like a fair agreement between GM & Reva, but in the immediate term Reva emerges as the biggest winner. An endorsement from GM will propel Reva into the minds & hearts of potential customers who will no longer question Reva's technology & viability, instead people will now look forward to buying cars made by Reva.
Thirsty and odd years ago, IBM made a similar endorsment on Personal Computers - by releasing IBM PC running on Microsoft DOS, and that decision was the turning point in Microsoft's history, the entire world woke up that day and took notice of Microsoft & personal computers.
Can Reva do the same in the automotive world? Can GM take Reva's electric motor technology global? Only time can answer to such questions. But in the mean time, I just want to applaud the product strategy of Reva electric car. It was a brilliant move to associate with a bankrupt GM. GM's troubles in the US market will prevent it from taking full advantage of electric car technologies, and in all likely hood GM will fail to develop its own electric car technology that is suited for emerging markets - thus providing a clear road for Reva to cruise ahead.

1 comment:

kimberly said...

The electric car in a great innovation nowadays, i think is a goop option not only to save money even more now the fuel is very expensive, but it could work to save our planet of the pollution environment. i think costa rica investment opportunities must be approac