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Intеrnаtiоnаl Mаrkеt Rеsеаrсh: Еlесtrоniс Vеhiсlе Ехроrt to the United States

Еlесtrоniс Vеhiсlе Ехроrt to the United States


The United States is located in the Northern America region. It borders various countries, including Canada and Mexico. The country is a federal republic and consist of 50 states. The United States is the largest, technologically advanced and most competitive economy across the world. The gross domestic product of the US has consistently experienced growth of 2% and above since 2011. Both in terms of geographical area and demography, the United States forms a large market size for electronic vehicles being developed for export in Australia.

SWOT Analysis


There are various benefits of doing business in the United States. Firstly, it is the world’s largest market and has the largest private sector in the world. Secondly, the United State market has low regulatory barriers and minimal language barriers. Thirdly, there is available access to global supply chains, which can lead to exports to other markets. What is more, the United States is among the most innovative consumer markets in the globe and has skilled, as well as productive labor force with high mobility. There is also ease of doing business in this market due to the availability of similar business culture, as well as strong rule of law.


The fact that the United States is a large market for doing business, this can equally lead to some unique challenges. One of the challenges is that there are vast regional differences among its 50 states, which also form a target market. Secondly, since it is the most innovative consumer markets in the globe, as well as high consumer expectation in the country, this can ultimately cause saturation of products. In addition, there is a high cost of living in the country, particularly in the major cities. This consequently reflects that there is a high cost of business insurance, as well as expensive and time consuming process of obtaining business or work visas.


The fact that the US is the largest economy in the globe, this is a substantial indicator that the country has a large market size for the electronic vehicle company. More importantly, the country is forecast to remain the same until 2050, when China is anticipated to move in the first place. What is more, the country has 76 of the top most 100 universities across the globe and is the largest venture capital market in the world. In this regard, it is anticipated to continue being the innovative center of the world. This offers the company with remarkable growth opportunity, since it can focus of expanding its manufacturing operations to the United States due to the availability of highly skilled workforce and innovation infrastructure.

The major threat the company could face in the US market is competition, both from the existing automakers and new entrants to the industry. Although the industry is yet to mature, there are various US automakers that are very keen in their research and development initiatives with a focus and market electric vehicles in large scale. Some of these automakers include Nissan, Ford, Toyota, Tesla, and Chevlolet (Orbach & Fruchter, 2011). Another main threat facing the company in its plan to market electric vehicles in the US is that the consumers in this market are largely risk averse, particularly in regard to this new technology that has not yet passed the test of time (Vardera & Finpro, 2010). Thus, most consumers are rather fearing to be early adopters of electric vehicles, and prefer conserving the fuel consuming vehicles until this new technology becomes well proven.

Competition Analysis

The top best selling automaker of electric vehicle in the US is the Chevrolet with about 60,000 units followed by Nissan with about 50,000 units. The rest includes Toyota with about 30,000 units, Tesla with about 25,000 units, and lastly Ford with 11,000 units. This is a clear indication that the industry is very immature considering the number of unit sales so far (Jennifer, 2013). In order to gain a strong competitive advantage, the company will have to produce and market electric vehicles that have unique attributes with high appeal to consumers. In addition, the company will have to develop an effective marketing mix strategy that can place it in a market leadership position.

Cultural Environment

The US is home to many diversified cultures, and a wide variety of ethnic values, groups, and traditions. It is estimated that the country has a total population of about 320 million. Besides the relatively few Native Americans, almost all Americans are immigrants who later settled there. The country has a literacy level of 99%, on which almost everyone has a graduate degree and above. Most people in the US population are Christians, although there are also other religions, including Muslim, Judaism, Buddhism, and Hinduism (Cook, Ward & Perry, 2004). What is more, English is the national language in the US. Essentially, the Australian electric vehicle company will not experience much difficulty in trying to integrate its business to the culture of the US. This is mainly because of the fact that both the general cultures of the US and Australia are more similar, especially in regard to the level of individualism, risk or uncertainty avoidance, masculinity, religion, as well as language, all of which shapes the consumer behavior.

Economic Environment

The United States is considered as a developed country in the world and has the largest national economy globally. It has an estimated GDP of $17 trillion, which is 23% of the global nominal GDP, and a purchasing power parity of 20%. The economy of the United States is fueled by the plenty of natural resources. In addition, the country has the highest worker productivity in the world and has the 6th highest per capita income. What is more, the US has a capitalist economy that is fueled by high productivity, as well as plentiful natural resources. The country is the biggest importer of goods in the world, and the private sector in the country constitutes about 86% of the economy. In addition, consumer spending is 71% of the country’s economy. More importantly, the US has the highest average employee and household income, and the 2nd highest median household income world over. This is a clear indication that there is a large market of electric vehicles in the country, given their potentiality to buy level. However, the company should note that the US is highly vulnerable to the effects of a global economic recession. For instance, the recent global recession in 2008 led to reduced asset prices across the world, on which stock in the US marketplace lost almost 25% of their value. In addition, the country experienced high unemployment, low consumer confidence, increasing inflation, escalating food and petroleum prices, as well as collapse of several businesses.

More specifically, the government is lending financial resources to assist electric vehicle manufacturers and marketers redesign and develop more technologies to enhance the industry growth. The government has also pledged to support the establishment of an effective infrastructure for the industry. In this regard, the government target the country will have access to vehicle charging available at nearly 1 million charge points in the US (Shankleman, 2014).

Legal environment

While entering the United States market, the company should ensure to know the US regulations that apply to its products, as well as follow suitable labeling requirements. As the company aim to export the electronic vehicles to the United States through shipping, it will be critical for it to classify its products using the harmonized tariff schedule. It will also require to determine the duty rates using the United States International Commission database. In order to ease any complexities of shipment, the company can also hire a licensed customs broker, who can help with federal procedures, as well as submit payment and information to CBP on behalf of the company. The US taxation system is complex, and the need for a tax lawyer will be a necessity for the company. Worth noting, tax can be imposed by the federal government, as well as individual states. Lastly, the company will have to consider applying for a US trademark protection (Harris, 2000). More specifically, the government of the US has already put laws in place for enhancing the industry growth. For instance, there are the Energy Extension and Improvement Act of 2008 and the American Security and Clean Energy Act of 2009, all of which supports granting tax incentives to the electric vehicle industry.

Political Environment

The US is a constitutional republic governed through democracy. The government has an effective system of checks and balances, which are clearly defined by the constitution. The country is ranked high in regard to democracy and has low rankings in regard to corruption. What is more, the country has a federalist governance system, on which the citizens are subject to 3 levels of government, including state, local, and federal. In addition, the federal government comprises of 3 branches, which include legislative, executive and judicial. The US has got strong foreign relations with Australia, particularly in the area of international trade and economic growth. To this end, the Australian electric vehicle company will definitely enjoy a favorable political environment in its business venture, in the United States. Worth noting, it would be essential for the company to note that taxes are levied at the state, federal and local government levels. These taxes include income, property, sales, payroll, and imports, among other several business fees (Kaarst-Brown & Wang, 2003). However, the federal government, as well as most of the local and state governments are very committed on encouraging economic growth and development through promoting investment. Through crime remains a challenge, just like in the case of Australia, security has been given a key priority by all the levels of government. Conclusively, the electric vehicle company has got a great business opportunity given the stable and developing political arena in the United States.

Market Size

The marketing of electric vehicles is not new in the United States, but the market size is immense and business opportunities far from full exploitation. More than 194,000 electric vehicles have been sold across the country since 2008 (Meade, 2012). The market share of electric vehicles has experienced increments, with 0.14% in 2011, 0.37% in 2012, and 0.62% in 2013. In addition, the country is the global leader in electric vehicle sales, with 46% market share of the global sales. More importantly, the government of the US has pledged immense support to the electric vehicle industry, and it aims to enhance the country become the first nation to have more than one million electric vehicles on the highway by the year 2015 (Department of Energy, 2011). This is in its effort to reduce greenhouse gas emissions, reduce oil dependence, as well as promote economic growth. What is more, with its focus to promote economic growth, the government has always encouraged foreign investors to establish businesses in the country in order to boost job creation, as well as the country’s GDP. Although there is a great threat of competition within the industry, most electrical vehicle manufacturers in the country have been experimenting with electric vehicle prototypes over the years. However, they have recently begun producing them on a larger scale for selling (Tyler, 2013). Therefore, the market for purely electric vehicles is in its infancy, in the country.


As it has been established in this strategic analysis, there is an immense unexploited market opportunity in the North American country, the US. The industry is far behind maturing, and the market size is large. What is more, the political, cultural, legal, and economic environments are really favorable to support foreign investors in the country. The government is very keen towards promoting the electric vehicle industry in its effort to reduce greenhouse gas emissions, reduce oil dependence, as well as promote economic growth. Given that the company will use effective market entry strategies, along with a strategic marketing mix, it stands a chance of becoming the market leader of electric vehicles not only in the United States, but also in the entire North American region (Yu et al, 2011).


Cook, S., Ward, G., & Perry, T. (2004). USA. London: Rough Guides.

Department of Energy. (2011). One Million Electric Vehicles By 2015. Retrieved from https://www1.eere.energy.gov/vehiclesandfuels/pdfs/1_million_electric_vehicles_rpt.pdf

Harris, P. G. (2000). The environment, international relations, and U.S. foreign policy. Washington, D.C: Georgetown University Press.

Jennifer, T. (2013). Analysis of the Electric Vehicle Industry. Retrieved from

Kaarst-Brown, M. L., & Wang, C. (2003). Doing business in the USA. Business Economic Review44 (1), 37–57.

Meade, D. S. (2012). The Impact of the Electric Car on the US Economy. Economic Systems Research, 7 (4), 413-438.

Orbach, Y., & Fruchter, G. E. (2011). Forecasting sales and product evolution: The case of the hybrid/electric car. Technological Forecasting and Social Change78 (7), 1210-1226.

Shankleman, J. (2014). US electric car market nearly doubled in 2013. Retrieved from

Tyler, F. (2013). Why U.S. electric vehicle sales are booming. Retrieved from

Vardera, L., & Finpro, S. (2010). The Electric Vehicle Market in the USA. Retrieved from http://www.tekes.fi/Global/Ohjelmat%20ja%20palvelut/Ohjelmat/EVE/Selvitykset/finalusevmarketstudy1.pdf

Yu, A. S. O., Silva, L. L. C., Chu, C. L., Nascimento, P. T. S. & Camargo, A. S. (2011). Electric vehicles: Struggles in creating a market. 2011 Proceedings of PICMET ’11: Technology Management in the Energy Smart World (PICMET). IEEE.