Question: Dynamic Shuttle Business Model and Partner Selection Business Model Once the market potential for Dynamic Shuttle in India was estimated, Casesas team deliberated on the
Dynamic Shuttle Business Model and Partner Selection Business Model Once the market potential for Dynamic Shuttle in India was estimated, Casesas team deliberated on the best path for market entry. Ford had established plants in India in the late 1920s, and Ford India had operated as a wholly owned subsidiary of Ford Motor Company since 1995, with manufacturing facilities in Chennai and Gujarat.21 The team assessed three different options for the Dynamic Shuttle rollout. In the first model, Ford Motor Company and Ford Motor Credit Corporation (Fords financial and lending arm) would provide the vehicles, financing, and parts and servicing. This solution was more complete and enabled more in-house control, but operating its own fleet on the ground would incur heavy capital requirements, as Ford would have to own the overall assets (the vehicles themselves), a strain on the companys overall capital. The second option identified was to organically develop the technology in-house and sell it to companies already in operation to help them create this business. This option was ultimately rejected due to the slower speed of development, especially in light of the necessity of starting operations and scaling the business model quickly. The model ultimately selected was for Ford Smart Mobility to choose a partner that would establish operations on the ground in India. With this partner, Ford would establish a franchise model, which would facilitate the platform, payment system, and create a joint business model. Strategic Imperatives for Partner Selection Fords vision for Dynamic Shuttle was to choose a partner whose current business model most closely aligned with their view of the offering. The team considered key questions and solutions that each partner would need to satisfy, provided below. After thinking through these key imperatives, the team identified five potential partners. A matrix is provided in Exhibit 4 with details on how each partner aligned with the goals and competencies needed to successfully execute on the project. Key considerations for the team included:
Business Model: Would the shuttle have defined stops (B2C) or offer on-demand services? Are rides shared (usually with 1 other person) or a true shuttle (up to 12 passengers)?
Customer Strategy: Who is the primary competitor, and where does demand come from?
Scalability of Algorithms: What is the number of cities the partner currently operates in?
City Relationship: Has the partner cultivated relationships with cities to operate the business?
Physical Products: Who actually owns the vehicles in operation?
Operating Franchise Model: Can the partner quickly develop a franchise model?
Willingness to Accept Investment: To what degree could Ford be a controlling stakeholder?
User Experience: Is customer feedback and/ or research on the partners ability to deliver on promised experience positive? Growth Potential: What are the partners plans for growth?
Applicability and Flexibility of Algorithm: Can the partners technology (mapping and algorithms) adapt to different needs and new locations? How easily is it replicated?
most important question!!!!!!!!
Partner Selection Casesa and his team had answered the basics: identified the market for Dynamic Shuttles first international pilot (India); defined the business model necessary to execute on the pilot; deliberated on specific strategic initiatives and imperatives needed for a hypothetical partner. Their focus now shifted to evaluating the five potential partners Ford could align with to bring Dynamic Shuttle to India. As he sat down to review the agenda for his next meeting with the Global Strategy Team, the key discussion item remained: Which partner would be the best match for Ford in terms of business model, growth, technology, and operational efficiency to successfully launch a Dynamic Shuttle pilot in India?
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