Global Business Team Projects, GlobalMBA Cohort 2022/23

The Past, Present and Future of the European and U.S.-American Electric Vehicle Battery Industry: A Comparative Analysis

Conor Rynne, Martin Chwat, Moritz Klein, Simon Berndt

Given the influence of mankind on global warming, the study points out the critical impact of the transportation sector, responsible for over a third of global carbon dioxide emissions. Considering the pivotal role of electric vehicles in mitigating these emissions, the thesis focuses on the most crucial part of them, the battery. It examines the historical roots, current status, and anticipated trajectories of the rapidly growing and changing EVB industry in the United States and Europe. The thesis utilizes Porter's Diamond framework to analyze various factors influencing the competitiveness of the EVB industry in the United States and Europe. Emphasizing the global interconnectedness of the industry, the study acknowledges the challenges faced by both regions, such as dependence on Asian manufacturers, and the imperative to diversify raw material sourcing and develop new technologies. Additionally, the research examines governmental policies as well as company and industry strategies aimed at fostering a sustainable and independent EVB sector. In conclusion, despite the late focus on the EVB industry in the United States and Europe, both regions have laid the groundwork for growth in a similar manner. However, catching up with Asian industry leaders presents an enormous challenge that demands substantial resources and strategic planning. Neither regions could have been identified as more or less prepared for this challenge. The research suggests that while the United States and Europe have set the stage for a competitive EVB industry, only time will unveil the success of their efforts in achieving climate goals and industry independence.

An Analysis of the Evolving Global Value Chain of the E-bike Industry

Samuele Rinaldi, Mitchell Hansen, Ulrike A. M. Hübner

This inductive research analyzes the dynamics shaping the global e-bike industry, with a focus on evolving global value chains (GVCs). It examines general factors influencing GVCs and evaluates the historical and current evolution of the e-bike industry in key regions: China, Taiwan, Southeast Asia (Vietnam, Cambodia), Europe (Portugal, Eastern European countries), and the USA. Historically dominant, China faces challenges from anti-dumping duties and rising production costs, leading to manufacturing relocation to Southeast Asia. Despite obstacles, China's transition to medium/high-quality e-bike production and its extensive domestic market suggest the potential retention of a major global role. Taiwan's high-end market faces potential threats, while Cambodia and Vietnam position themselves as emerging contenders, leveraging favorable trade agreements, infrastructure development, and synergies. Portugal and Eastern European countries gained influence within the e-bike GVC in Europe. However, global competition may be restricted by higher production costs and capacities. The American e-bike industry encounters challenges, including component shortages and dependence on Asian imports, hindering short to medium-term growth. Contrary to a singular global shift, the study envisions simultaneous coexistence and development across multiple regions within the e-bike industry. China and Taiwan may sustain global roles despite Southeast Asian competition, while Portugal and Eastern Europe concentrate on the European market. The USA's role in the e-bike GVC remains uncertain. The findings offer insights for policymakers, industry stakeholders, and companies in the global e-bike landscape. The research acknowledges limitations and recommends a broader analysis for future studies, including additional countries and a more in-depth exploration of industry interactions.

Reshoring, Near-shoring, and Friend-shoring in the Automobile Industry: A Comparative Analysis of Europe and the United States

Brenna Brisson, Elena Metzen, Alexander Mistretta, Adrian Uhl Vicarte

The evolving landscape of the US and European automobile industry reflects a strategic realignment, where considerations of supply chain resilience, cost-effectiveness, and local economic impact converge to shape the industry’s trajectory. The confluence of reshoring, near-shoring, and friend-shoring strategic practices positions the industry at the forefront of transformative change, reinforcing the imperative for robust and resilient supply chain practices in the face of a dynamic and challenging global environment. This study aims to unravel crucial insights for industry practitioners and policymakers. Beyond immediate practical implications, the research also seeks to enrich the academic literature on reshoring within the automobile industry. In doing so, it aspires to contribute a distinct understanding of the complexities inherent in these strategic decisions, offering a foundation for informed decision-making and strategic planning in a dynamic and ever-evolving industrial landscape.