It is the same question flipped two different ways. The question arises because businesses seek profitability and product excellence, creating barriers to entry in an industry that is fast becoming commoditized.
In today's analysis, we discuss:
1. Outsourced vs Off-the-shelf (OTS)
2. ICE Industry Uses Specialised Suppliers
3. The Difference in the Electric Two-wheeler Industry
a. Cells and Packs
Does a Gigafactory Make Sense Today? The Ola Electric Case Study
b. Motor
c. Controllers & Software
4. The E2W Industry's Infatuation with Vertical Integration
5. But Scooters are Not Cars
6. Lack of Scale Limits Integration
7. Then there is the BoM Cost Consideration
8. Non-Core: What Makes Sense to Integrate?
Large manufacturers in the ICE business outsource everything but keep tight control over the quality and final assembly of the products. Break down any mass-produced motorcycle, and almost every significant component would be outsourced. Yet, they are not off-the-shelf and unavailable in the open market for others to buy.
Outsourced vs Off-the-shelf (OTS)
Outsourced does not mean OTS. In the ICE industry, there is hardly anything OTS. In contrast, in the E2W industry, there is a possibility of a lot of OTS, especially if you aspire to be a niche manufacturer of handcrafted motorcycles in a European village, taking pre-orders on Indiegogo. That's not scoffing at anyone - the world is a more beautiful place because of niche manufacturers, and Niu started life on Indiegogo.
This post is for paying subscribers only
Upgrade your account to read the post and get access to the full library of posts and ALLSPARK, our knowledge bank covering 200 startups.
Sign up now
Already have an account? Sign in
