This project aimed at building up the business model canvas of Porsche. In particular the focus is about the market introduction of the new Porsche mission e.

1. Porsche mission e

2. Baggio Michela
876690
Bijin Babu
876654
Cheli Filippo
876241

3. 19391931
Short history of Porsche
Ferdinand
Porsche founded
the company
The Porsche 64 was
developed using
many components
from the Beetle
1948
Ferry Porsche
launched the Porsche
356 (the first real
Porsche)
1964
After many victories in
racing competitions,
Porsche 911 was
presented
1972
A new executive
board without family
members was
established
1990
Porsche introduced
the lean
manufacturing
learned from Toyota
2007
A revolutionary model
was launched: Porsche
Cayenne
2004
Toyota assisted
Porsche in
developing hybrid
technology
2014
Porsche announced
several hybrid models
(Panamera, 918 spider,
Cayenne S)
1984
The company
goes public

4. What now?

5. Porsche Mission e 5
“Efforts aimed at offering unmistakable emotional design with
excellent performance for the first Porsche four-seat battery
powered; this is the new Porsche Mission E.”
«Creating tomorrow»

6. Index
1. Questionnaire «1» - Electric cars' market
2. External analysis
1. S.T.E.E.P analysis
2. Porter’s five forces
3. Internal Analysis
4. S.W.O.T
5. Porsche Mission e
1. The product
2. Things are going to change…
3. Direct competitors
4. Switching cost
6. The business model
7. Questionnaire «2» - Porsche’s perception
8. Our proposals

7. Ind.it group started the analysis of the context in which Porsche operates with a brief market research. Using the Google forms, we built up a
questionnaire aimed to understand what people generally know about the world of electric cars. Here we report some of the most interesting
questions and the results that we obtained.
Questionnaire «1» - Electric cars' market

8. External analysis – S.T.E.E.P analysis
SOCIAL
- Customers need new ways of understanding transports;
- People are better informed and can have easily access to
data;
- Population is increasing very fast;
- Eco-products are very appreciated by customers and
enforce brand image;
- Customers have the necessity of high batteries’
autonomy.
TECHNOLOGICAL
- Patent protection;
- New developments are opening a wide horizon of
opportunities;
- Technology became a key feature for products;
- New technologies have to guarantee reliability and
performances.
ECONOMIC
- High R&D and marketing costs;
- Cost for training;
- Necessity of new kind of raw materials vs. finiteness of
resources;
- High investments in new production system.
ENVIRONMENT
- Awareness of environmental issues;
- Governments are signed strict protocols;
- Fossil resources will not have infinite life;
- Increase in number of electric stations.
POLITICAL
- Governments are supporting new technologies;
- Countries characterized by high pollution level have to face
higher taxation;
- Governments encourage customers to change their habits.

9. External analysis – Porter’s five forces
«New entrants»
1. Medium concentration high attractiveness of
this industry because it’s still young and with a
high possibility of development.
2. The CO2 emissions regulations and the
investments in subsidies and incentives by
governments around the world are encouraging
greater industry participation and adoption in the
marketplace.
3. Continuous innovations in battery technology.
4. Electric cars are far easier and cheaper to build
compered to the gasoline-powered automobiles.
This contributes to make more attractive this
market.
1. Existence of strong brands. The most important
players in the EV industry are companies that
have already a strong position in the automotive
industry.
2. Despite the expected growth of this industry, the
economies of scale are not so profitable yet. Still
nowadays the cost for the battery of an electric
car represents the 27% of the entire cost of the
vehicle.
3. The existing partnerships between the electric
cars’ makers might discourage new entrants.

10. Hydrogen cars.
The hydrogen is turned
into electricity through
fuel cells that powers
electric motors. But these
vehicles are still
prototypes.
ICEs cars.
Fuel efficiency of Internal
Combustion Engine vehicles
continues to improve. In
addition, the cost advantage
of EVs increases as gasoline
costs rise and decreases as
they fall.
Hybrid cars.
Many notable parts essential for
hybrid and gasoline vehicles are
removed entirely in electric cars.
But individuals could prefer an
hybrid car; in fact, they might
find it safer than an electric one
because if you run out of
battery, you will still have fuel.
Solar cars.
It’s an electric vehicle
power by solar energy.
Today solar panels can
only be used to extend
the range of Evs.
External analysis – Porter’s five forces
«Substitutes»

11. Medium concentration. The main brands in the automotive industry, like Toyota Motors, General Motors, BMW, Nissan Motors,
Ford Motors, are involved in the manufacturing and development of their own electric vehicles, but these cars are in most cases
only prototypes or projects. The real actors on the EV industry are not so numerous until now (they mainly come from China and
India). It’s possible to better understand the internal rivalry considering also other factors:
→ The industry is still young. Nevertheless, the market is expanding very fast thanks
to the quick development of innovative technologies and the new customers’
behaviours towards sustainability and energy saving.
→ Technically-savvy and automotive-oriented nations like the US, Germany, China
and Japan, have plans to increase considerably the number of electric cars in their
own country. (I.e. UK Government’s vision is that by 2050 almost every car will be
an ultra-low emission vehicle).
→ There are no consistent exit barriers. This contributes to make the EV industry a
market with a medium internal rivalry.
External analysis – Porter’s five forces
«Internal rivalry»

12. BARGAINING POWER OF BUYERS: moderate
→ Direct consumers in the EV industry are especially of middle-
upper class, environmentally conscious, tech savvy, politically
active. Thus, they are generally less price sensitive.
→ Customers have growing expectation about range and charge
time met today. This key aspect is increasing their influence on
automakers strategies.
→ Companies which are more developed in the EV industry are
often suppliers for the other new firms entering this market.
They can’t lose these companies because, through
partnerships with them, they are allowed to share and increase
their profit with the earnings made by their buyers.
BARGAINING POWER OF SUPPLIERS: high
→ Strong partnerships between automakers and batteries
manufacturers. Nowadays, the outsourcing of technological tools
is the most common solution; however, automakers are still
deeply involved in the design and the production of batteries for
their vehicles.
→ This young industry is creating some very dominant suppliers.
This increasing relative concentration contributes to the growth
of their power.
→ The EV market now is all about technology. If Companies really
want to compete with ICE makers, they have to accelerate the
process and researches of innovation by acquiring technology
externally.
→ The manufacturing of new technological electric cars might
increase the usage of some specific resources. One of them is
the lithium. The Lithium-Ion Battery is rapidly expanding as an
alternative to the nickel-metal hydride batteries in the hybrid
electric vehicles. The consume of lithium is expected to grow in
the next years.
External analysis – Porter’s five forces
«Bargaining power»

13. Internal Analysis – Porsche in the automotive
industry
→ Porsche has a lean organisation structure which allows the company
to increase its efficiency and consistency with its exclusive products.
→ The firm uses a class-leading technologies that competitors find
difficult to imitate.
→ Its sports car maker occupies the pole position, with maximum
appealing in US.
→ Porsche offers vehicles with high performances and prestige yet at
more affordable prices compared to BMW M6 or Mercedes-Benz SL-
class.
→ Customers choose Porsche for its: innovative features, exceptional
styling, European origin.
Differently from premium brands like Alfa Romeo, BMW AG and
Mercedes-Benz, that base their strategy on ramping up
production to grab volume, Porsche is limiting its availability. Since
it’s a luxury brand, it lives from its exclusivity and as the Porsche’s
CEO also stated: “If everyone drives a Porsche, it’s not exclusive”.
As a consequence, despite it offers different
products (SUV, 4-doors, sedan and truck), Porsche
results smaller than most of its competitors. The
company exports its products all over the world
but it’s not international expanded.
What is driving Porsche?

14. S.W.O.T
Having analysed in details both the external and internal contexts, we decided to resume all
the key points using the S.W.O.T. tool.
• Global presence thanks to exportation
• Well performing brand & iconic design
• Already existing full portfolio of hybrid
cars
• High quality of products offered
• Waiting list & low volume production
• Specialized employees
• Huge investements requirement
• Very targeted customers
• New market segment focused on fully
electric cars (Environmental issues)
• Tax reduction for companies offering EV
• away the shame of dieselgate
• Many potential substitutes
• Competitors are expanding their
products’ gamma
• New disruptive technologies
Strenghts Weaknesses
ThreatsOpportunities

15. Porsche Mission e
With Porsche Mission e project the company
aims to sell and create an eco-system and not
only an EV car. The offer includes:
- Car;
- System of battery charge;
- Application for car’s management.

16. → 600 CV full electric engine (440 Kw);
→ From 0 to 100Km/h in less than 3,5
sec;
→ Automatic torque distribution to
individual wheels;
→ Low centre of gravity;
→ Energy recovery during braking.
→ Full charge provides an autonomy of
500 km;
→ 80% charge in 15 min sufficient for
400 km;
→ Loadable also wireless, thanks to a
built-in coil in the floor;
→ Plug very versatile and battery less
heavy.
The product
→ Digital key opens the car to the
owner and people authorized;
→ Eye Tracking System and
instrumentation eye commands;
→ Connection with Porsche connect
store via smartphone or tablet.
The car The battery The extras

17. Things are going to change…
The electric car industry got a sharp rise after the arrive of Tesla Motors which
entered the market in the 2008 with the fastest ever production electric car.
Nowadays, Tesla Motors is the uncontested technological leader in the EV
industry. Its cars are modern design with unprecedented engineering
standards and it’s the only company making long-range pure electric vehicles.
Investements in
electric cars market
Level of tecnology
However, things are going to change. The
global luxury marques are making plans to
compete more directly with Tesla Motors and
its Model S all-electric long-range luxury sedan.
The histogram shows the expected growth of
the industry: electric vehicles will be 35% of
global new cars sales by 2040. Porsche is one
of the few brands that has already presented a
prototype ready to be produced: Mission e.

18. 0
5
10
15
20
25
30
35
40
45
Price [10^4 $] Speed 0-60 mph [sec] Autonomy [10^2 km] Charging time [min]
Porsche Mission e Tesla model S Karma Revero
Direct competitors
The value curve shows how Porsche with the lowest price is able to provide anyway very good performances close to the Tesla
Motors’ Model-s (the delta price is quite high, around 41,300$). The Mission e achieves better results in one of the most
important fields: charging time. This selling point should allows Porsche to gain an important market share embedding
everyday users of EV.

19. Switching cost
Panamera S Panamera hybrid Mission e
Fuel [€/10’000km] 9,4[L/100km]*1,6[€/L]*100[10^2 km] = 1504€ 5,8[L/100km]*1,6[€/L]*100[10^2 km] = 928€ 2,5[€/120km]*10000/120[120km] = 208€
Investment required for hybrid or electric solution
Recharge station 600€
Charging cables single phase 32A (type 3C) 209€
Panamera S Panamera hybrid Mission e
Taxes ↑ ↓ ↓↓
Insurance * = ↑ ↑↑
Maintenance** ↑ ↓ ↓
(*) The insurance price of hybrid and EV vehicles is higher due to:
→ Higher price of these cars compared to the ICE’s ones;
→ The payout is higher when these cars are stolen or
damaged (repair costs are more expensive due to the
more sophisticate technologies used).
(**) The maintenance cost for gas vehicles is higher because the
check up for ICE’s car is more frequent.

20. The business model
Customer sideCompany side
+
1. Key partners
2. Key activities
3. Key resources
4. Cost
1. Value proposition
2. Customer Relationships
3. Channel
4. Revenue
5. Customer

21. Business model – Customer side
Customer Relationships
Porsche aims to provide its customers a unique purchase and
ownership experience. It tries to reach its purpose through:
→ Relevant and personalized communications with its clients over
different touchpoints throughout their sales journey;
→ Each customer has a personal sales contact operator;
→ A global Porsche CRM system, designed to consolidate customer
contacts across channels and to create an individual customer
journey that is tailored to the customer's needs.
Channel
Porsche is using motorsport events to present its new
all-electric car, that it will be available in 2020 in all its
centres around the world.
Revenue
The company expects annual sales of about 20,000 units for its first all-electric car, the Mission e.
Value
proposition
Soon, the customers will
be able to drive a
incredibly powerful car
with amazing
acceleration and to save
a lot on fuel cost. The
product will offer
unmistakable emotional
design with excellent
performance for the first
Porsche four-seat
battery powered. new
Customer
Mission e could be the
answer for customers that:
→ Look for luxury and high
sport performances;
→ Belong to the middle-
upper class;
→ Are environmentally
conscious, but need a
very reliable product
(like fast charging).

22. Business model – Company side
Key partners
Porsche wants to
concentrate the
development of new core
technologies internally.
While the company is
working with a number of
other organisation to build
a network for charging its
new all-electric cars.
Key activities
→ Porsche is expanding its plant in Zuffenhausen for electric drives manufacturing;
→ To support innovative products Porsche has created its own Digitalization
Competence Centre.
Cost
→ Porsche is investing almost a billion plant in
Zuffenhausen;
→ Relevant efforts in training people;
Key resources
→ The most difficult aspect of electric car development is finding talented
experts capable of designing, developing and constructing this new type of
vehicle. Porsche already counts on 24,000 employees in the plant where
Mission e will be implemented and it will hire 1,400 new people to
complement its staff;
→ IT and electronics will account the 30% of value added share in future Porsche
cars.
→ New patents right;
→ High costs in R&D;
→ Marketing & promotion.
→ New investment ICT;

23. Questionnaire «2» - Porsche’s perception
The group made a second questionnaire in order to understand the perception of people about the binomial between Porsche and EV cars. The
main results are reported here below.

24. Our proposals
Analysing the previous data collection of questionnaire, Ind.It has
identified two main areas of possible improvements.
To fulfil the customers expectations and to support Porsche’s
business model canvas, the group proposes two main options :
1. Purchase combinations;
2. Porsche green network.

25. Purchase combinations
Customer property Porsche property Type of contract
Insurance
contract for the
car’s battery
Leasing contract
for the car’s
battery
Full leasing
contract
Customer
Ind.It group thinks that to facilitate the transition to electric cars the costumers should have a wide range of
offerings among which they can decide their purchase. To do that, four purchase combinations have been designed
balancing three main purchasing’s aspects: customer property, company property and contracts.

26. Porsche green network
The second proposal of Ind.It is to build up a network among all possible Porsche electric car’s useurs.
Porsche green network aim to allow to everyone who get a personal recharge station to share it with other
Porsche’s family members.
By doing this:
1. The customer who shares its own recharge station gets some
Porsche coins spendable for example to make lighter the rate
od battery insurance of leasing costs;
2. The number of recharge station increase simplifying long travel
and services for all customers;
3. The future extension of electric technology to other Porsche
models can rely on well structured infrastructure;
4. The customers create a social-network based on similar value
and needs;
5. The company looks more closed to its clients.
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27. Porsche Mission e 27
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