MGMT 20143: Think Big

Term 1, 2020

Assessment 1: Business model Deconstruction

Revolt Motors

LEC: Dr. Andrew Roberts

Jigneshkumar Savaliya

12122795

Submission date: 13 /04/2020

Word count: 1741

Campus (tick one): MEL √ SYD  BNE  DST  Other (write): ____________

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REVOLT MOTORS
(Revolt Intellicorp Pvt. Ltd.)

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Executive Summary

Revolt Motor (Revolt Intellicorp Pvt. Ltd.) is small start-up manufacturing motor vehicle
company. Company is established by Mr. Rahul Sharma in the year of August 2017. Wholly
owned by Mr.Rahul Sharma. Revolt Intellicorp Pvt. Ltd. is focused at making personal
mobility practical, affordable and sustainable. Headquartered in Gurgaon, Revolt Intellicorp
Pvt. Ltd. has a manufacturing facility in Manesar, Haryana. Spread over 100,000 square feet,
the facility boasts a production capacity of 120,000 vehicles commissioned for Phase 1. Also,
a high-profile experienced R&D team based in Gurgaon headquarters, has been working for
close to 2 years with a joint vision of introducing India’s first AI-enabled motorcycle without
compromising on the performance or aesthetics [ CITATION Kuh19 \l 1033 ].

Industry of Operation and Serving Market

Company is new start-up in India’s electric two-wheel manufacturing industry, it is first

electric bike manufacturing in India and officially launched in the fourth quarter of 2019.
This is the first electric bike company available in four city and, it has made possible zero
emission mobility in India.

Revolt Motor has launched it product to capture young middle-class customer market in sport
bike segment, company has mainly for the office commuter, student and courier and parcel
delivery person because it provides best services in terms of range and maintenance service at
vary affordable price [CITATION rev20 \l 1033 ].

Product and Service

Revolt Motors has launch first two model of the bike is RV300 at (RS. 2999 × 36 Months)
and RV400 at (RS. 3999 × 36 Months) in year of 2019. The company provides charging
(battery swap) facilities in various area of city and bike maintenance and service with 8 years
of warranty[CITATION rev20 \l 1033 ].

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Table of Contents
Executive Summary.............................................................................................................................3
Business Model....................................................................................................................................5
2. Nine Building blocks....................................................................................................................5
2.1 Customer Segments...............................................................................................................5
2.2 Key Partners..........................................................................................................................5
2.3 Value Preposition...................................................................................................................6
2.4 Key Activity............................................................................................................................6
2.5 Channel...................................................................................................................................6
2.6 Revenue Stream.....................................................................................................................7
2.7 Cost Structure........................................................................................................................7
2.8 Key Resource..........................................................................................................................7
2.9 Customer Relationships........................................................................................................8
Key Interrelationship........................................................................................................................10
Critical Success Factor......................................................................................................................13
Risk Factors.......................................................................................................................................13
Business Model Changes...................................................................................................................14
Reference............................................................................................................................................15

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Business Model

2. Nine Building blocks

Revolt Motors business model will deconstruct in nine building blocks according to
Osterwalder & Pigneur’s canvas (Osterwalder and Pigneur, 2010).

2.1 Customer Segments

According to the Marketing theory it is important to identify right customer for the right
product in business to achieve desire sales growth, Therefore, Revolt Motors market
segmentation is defined based on product that they sales[ CITATION Tyn87 \l 1033 ].

Geographical area Urban Area

Age 18-50 years
Income 20k to 30k per month
Society class Middle class
Psychographic Environment friendly user
Usage 50-100 km per day
Profession Office commuter, Student, Deliver service provider,
Rental service provider etc.

2.2 Key Partners

Revolt Motors has many business partners that plays essential role in the company. The
company has needs row material, sales support, capita investment, and various service
providers are the essential partners to complete the product and services (Peters, Van Kleef,
Snijders, & Van Den Elst, 2013).

 Bank and Investors

 Sprats manufacture and suppliers
 Dealership
 Service center

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  IT department
 Marketing and Media
 Human Resource

2.3 Value Preposition

 Company has great value proposition in this sector to completely satisfy consumer
needs, which are listed below[CITATION rev20 \l 1033 ] .
 “Democratising clean commute using next-gen mobility solutions”.
 “To create a future of next-gen mobility with 100% accessibility and 0% fuel
residue”.
 Digital connectivity instalment facility on demand.
 Provide after sales services with highest satisfaction.
 Complete peace of mind at lowest cost across two-wheel industry like 8 years
warranty, 3 years free service and maintenance, up to 1,50,000 KM warranty of
battery, One year of comprehensive and five years of third-party insurance cover.
 Easy purchase plane for customer by monthly instalment payment with zero interest.

2.4 Key Activity

 One of the main key activity is to make available pollution free mobility solution to
the consumer society at lowest price point in electric two-wheel industry.
 Customer feedback collection and complaint resolution.
 Provides social community plate for users to share thoughts on Facebook, Instagram,
Twitter, and LinkedIn.
 Providing service reminder through strong follow-up.
 Organize Social gatherings for customers.
 Advertisement on social media, TV, and Newspaper, Auto Expo.
 Research and development for new product.

2.5 Channel
 Revolt Motors has dealer network across four cities.
 Costumer can also purchase from company official website www.revoltmoters.com
and get home delivery of bike.
 After sales service partner (Pinto Teixeira, 2008).

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2.6 Revenue Stream
Revolt Motors (Revolt Intellicorp Pvt. Ltd) has not published annual report and monthly sales
data publicly.

Company has main three revenue stream

 New vehicle sales

 Spare and parts sales to service partner
 Battery swapping (at charging station)

2.7 Cost Structure

Company needs to spend some percent of revenue to fix cost by several department and allied
services that needs to operate continues.

 Infrastructure cost
 Manufacturing cost
 Marketing and Advertisement cost
 Financial cost (if outside fund borrowed)
 HR and Training cost
 Customer care cost
 Transportation cost

2.8 Key Resource

Revolt Motor has needed to reach market, with help of resources organization can create and
a value proposition, maintain relationship, search new market with customer segment and get
revenue.

 Manufacturing facility
 Supplier
 Financial
 Marketing and advertisement
 Dealer and Service partners
 Human Resources

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2.9 Customer Relationships
Customer relationship plays significant role in business, beside only focusing on new
customer, existing customer must be satisfied or must take in account otherwise they
may switch to another firm.
 Customer feedback
 Phone call follow-up and email message
 24 hours customer support

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 Revolt Motors Business Model Canvas

KEY PARTNER KEY ACTIVITY VALUE CUSTOMER CUSTOMER

PROPOSITION RELATIONSHIPS SEGMENT
Investor Manufacture
Dealer Sales Eco friendly Customer feedback Urban area
Advertisement Vehicle Service Highest warranty Customer service 20-30k income
Supplier Customer service Insurance cover Email and phone call Age 18-50 years
Human resource Maintenance cover Social media Daily usage 50-100 KM
Battery swapping platform Eco friendly user
First in segment Middle class society
Affordable price Office commuter,
KEY RESOURCE Installment CHANNEL Student, Deliver service
Manufacturing unit payment provider, Rental service
Supplier Company website provider etc.
Funding Dealers
Dealer Service partner
Advertisement
Human Resource
IT department

COST STRUCTURE REVENUE STREAMS

Infrastructure cost
Manufacturing cost New vehicle sales
Marketing and Advertisement cost Spare and parts sales to service partner
Financial cost (if outside fund borrowed) Battery swapping (at charging station)
HR and Training cost
Customer care cost
Transportation cost

Source: [CITATION Ost10 \p 44 \t \l 3081 ]

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Key Interrelationship
There nine building blocks and each block is depended on others that Revolt Motors should
understand by review whole business.

Customer segmentation

To identify exact customer segment company needs to take in account other areas of business
like,

 Value proposition that what quality of product and service Revolt Motors can deliver
to customer? Like, warranty, free service, customer support etc.
 what is the key activity Revolt Motors is doing for marketing and service to attract
consumer? Like, advertisement, customer care.
 What would be the available key resources Revolt Motors will have to target
market?
 How much it will cost to Revolt Motors? Like, market segmentation cost.

Revenue stream

It is closely related to the main thee building blocks are,

 Do Revolt Motors is targeting correct customer segment? Wrong segmentation in

creases cost and revenue as well.
 Do Revolt Motor is proposing value that perceived by targeted customer? Like
quality, service.
 Do Revolt Motor have key resources that is required to achieve sales goal? Like
marketing, dealer partner, IT department.
 Do Revolt Motor have key partners that is part of activity? Like supplier, dealers,
advertisement partner.

Value proposition

It is depending on four building blocks which are,

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  What would be the cost to Revolt Motor to propose value to the customer? Like
product quality and service.
 What are the available key Resources and key partner Revolt Motor will be needed?
Like, service, customer care department, IT dep, dealers, marketing.
 Do Revolt Motor will satisfy segmented market customer? Like service, and product
quality.

Key partner

It depends on three building blocks which are,

 What resources will be needed to complete the business? Like, supplier, dealers,
investor, advertisement partner.
 Partners are selected base on requisite activity, marketing, manufacturing, sales,
service.
 Revenue needs to consider during partner selection, like will they provide service or
product at expected time and cost?

Key Resources

It depends on three building blocks which are,

 Company should choose partner according to the requirement of resource like

marketing, supplier, dealers.
 If resources are expensive then it effects on overall cast of company.
 Lack of resources impact on value proposition and revenue that results to customer
dissatisfaction revenue losses.

Key Activity

It depends on three building blocks which are,

 There should be ample resources to perform activity of marketing, manufacturing,

service.
 Partner should be capable to achieve targets and goals of supply, sales, service
quality.
 Cost structure must take in account while choosing activity because it may increase
cost to company.

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  Revenue depends on activity that what best company can do to increase the sales.

Cost structure

It depends on three building blocks which are,

 Cost structure depends on what activity will do and to do that what resources will
needed like manufacture bike parts is essential, sales needed marketing and
advertisement.
 Cost of the product and services will depend on what value company propose to
customer. Hight battery quality cost more to company.

Customer Relationship

It depends on three building blocks which are,

 Do Revolt Motors is doing right activity to maintain customer relation? Email, phone
call,
 Customer relationship is directly effects on cost of company, it depends on how much
they spent for customer.

Key Channels

It depends on three building blocks which are,

 Channel depends on the key activity that is needed to complete the business for
example dealer partner is important for physically buyers.
 It also depends on key partners and the resources that company require to do business.

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Critical Success Factor
Revolt Motors has some area that can be significant for company to increase the overall sales
by focusing on them (Ariyachandra, & Frolick, 2008).

Company has small scale manufacturing facilities that needs to be increases because every
time when company opens booking, company gets huge number of booking and customer
have to wait more then six month which makes customer unhappy.

Similar some customers are facing difficulties due to less number of battery swapping station
is available in city area that they operate, that needs to be expanded because after sales
availability of battery swapping is essential to keep engaged customer.

One of the main factor is value proposition, company is providing product and services that
has to be increased continuous like on road assistance, home service, warranty of vehicle that
they provide.

Risk Factors
Nowadays, every business passing from cutthroat competitive world and has no space for the
mistakes (wrong decision). Company must change will market tread (Novićević, 2014).

If company risk assess base on porter’s five force (Porter, M. 1979).

Revolt Motor is facing increasing competitive market due to the fastest electric vehicle
adoption in global market. Multinational giant company like Hero, Honda, and Bajaj two-
wheeler company has introduce their product at lowest cost in market so that substitute
product can be serious risk to company.

Supplier power can be risk for company because it outsources parts and other services like
dealers, advertisement partner for marketing etc.

Limited product portfolio may divert customer to other competitor, so company needs to
develop product portfolio like scooter.

Lack of battery swapping facilities can be risk for the company.

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Business Model Changes
Revolt Motors is successful start-up in electric two-wheeler segment. It proposes best value
to the customer in terms of product and services But,

One of areas that I would suggest to change in business model is battery swapping facility.

Company has their own battery swapping facility in some area in four city which is manual
by employee that is costly for the company and customer have to travel to much for battery
swapping.

For that, I would suggest design machine like (ATM) with varying number of batteries that
can be deploy according to the sales of vehicle in particular area or Region with partnership
with shopping mall and complex as well as city municipal council. And develop mobile
application that can give direction to the swapping station and availability of fully charged
battery so, that customer can scan code and change battery without any hurdle. Once the
demand is increased company will change with bigger capacity system and small (removed)
that will deploy in next area so that it can be easy and cost-effective way for company to
expand.

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Reference
Ariyachandra, T., & Frolick, M. (2008). Critical Success Factors in Business Performance
Management-Striving for Success. Information Systems Management, 25(2), 113-120.

Dobbs, M. (2012). Porter's Five Forces in Practice: Templates for Firm and Case Analysis. Competition
Forum, 10(1), 22-33.

Kuheli, R., & Borah, U. N. (2019, April 04). https://www.revoltmotors.com/press. Retrieved from
https://www.revoltmotors.com: https://cdn.revoltmotors.com/assets/images/press-
new.pdf

Novićević, B. (2014). Business Processes And Risk Factors. Teme - Časopis Za Društvene Nauke, (4),
1507-1521.

Osterwalder A, Pigneur Y (2010). Business Model Generation – A Handbook for Visionaries, Game
Changers and Challengers. John Wiley and Sons, Inc., Hoboken, New Jersey.

Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value Proposition. Hoboken, New
Jersey: John Wiley & Sons Inc.

Oestreich, T., Buztendijk F., & Hatch T. (2011). Uncertainty Management: Risk and Performance, Two
sides of the same coin. Cost management, January/February, 5-12.

Peters, F., Van Kleef, E., Snijders, R., & Van Den Elst, J. (2013). The Interrelation Between Business
Model Components - Key Partners Contributing to a Media Concept. Journal of Media
Business Studies, 10(3), 1-22.

Pinto Teixeira, L. (2008). Partners in Business. Brill, 39-58.

Porter, M. (1979). How Competitive Forces Shape Strategy. Harvard Business Review, 57(2), 137.

Revoltmotors. (2020, April 12). Retrieved from https://www.revoltmotors.com:

https://www.revoltmotors.com/about-us

Tynan, A. C., & Drayton, J. (1987, January 01). Market segmentation. Journal of Marketing
Managemen, 2(3), 301-335. doi:10.1080/0267257X.1987.9964020

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