Essay from the year 2016 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, , course: Competitive Intelligence, language: English, abstract: The electric vehicle battery is directly codependent to the electric vehicle industry. Both industries suffer from the high switching cost for batteries. Economies of scale and high capital investments have established a competitive and rather closed market. Within this market the buyers' power is omnipresent. The automobile makers are following a backward vertical integration strategy to increase the benefit within the supply and development chain. At the same time traditional combustion engines still threaten electrification due to customer distrust and again the high switching costs.
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