UNIVERSITA’ DEGLI STUDI DI PADOVA DIPARTIMENTO DI SCIENZE ECONOMICHE ED AZIENDALI “M.FANNO” CORSO DI LAUREA MAGISTRALE IN BUSINESS ADMINISTRATION TESI DI LAUREA “THE IMPACT OF ELECTRIFICATION ON THE BICYCLE INDUSTRY” RELATORE: CH.MO PROF. ANTONIO ZOTTI LAUREANDA: SARA MAZZOCATO MATRICOLA N. 1178841 ANNO ACCADEMICO 2018 – 2019 2 Il candidato dichiara che il presente lavoro è originale e non è già stato sottoposto, in tutto o in parte, per il conseguimento di un titolo accademico in altre Università italiane o straniere. Il candidato dichiara altresì che tutti i materiali utilizzati durante la preparazione dell’elaborato sono stati indicati nel testo e nella sezione “Riferimenti bibliografici” e che le eventuali citazioni testuali sono individuabili attraverso l’esplicito richiamo alla pubblicazione originale. The candidate declares that the present work is original and has not already been submitted, totally or in part, for the purposes of attaining an academic degree in other Italian or foreign universities. The candidate also declares that all the materials used during the preparation of the thesis have been explicitly indicated in the text and in the section "Bibliographical references" and that any textual citations can be identified through an explicit reference to the original publication. Firma dello studente _________________ 3 4 Index List of Figures ......................................................................................................................... 11 List of Graphs ......................................................................................................................... 11 List of Tables .......................................................................................................................... 12 Ringraziamenti ....................................................................................................................... 15 Introduction ............................................................................................................................ 17 1. Introduction to Electric Bicycles ....................................................................................... 19 1.1 Electric Bicycle Impact in Addressing Global Mega-Trends ................................... 19 1.2 Definition ....................................................................................................................... 20 1.3 Components .................................................................................................................. 21 1.3.1 Motor ....................................................................................................................... 22 1.3.2 Battery ..................................................................................................................... 22 1.3.3 Electrics Components ............................................................................................. 23 1.4 History ........................................................................................................................... 23 1.5 Market Development: The Diffusion of the Electric Bicycle’s Innovation ............. 24 1.5.1 China ....................................................................................................................... 26 1.5.2 Japan ....................................................................................................................... 28 1.5.3 Europe ..................................................................................................................... 29 1.5.3.1 Italy .................................................................................................................. 32 1.5.4 United States of America ........................................................................................ 33 1.6 Electric Bicycle Industry: Strengths, Weaknesses, Opportunities and Threats .... 36 1.6.1 Strengths ................................................................................................................. 37 1.6.2 Weaknesses ............................................................................................................. 38 1.6.3 Opportunities .......................................................................................................... 39 1.6.3.1 Reduction of Motorized Means of Transportation and Urban Mobility Solution ...................................................................................................................................... 39 1.6.3.2 Others: Tourism and Public Health .................................................................. 40 1.6.4 Threats .................................................................................................................... 40 5 1.6.4.1 Lack of Suitable Infrastructure ......................................................................... 40 1.6.4.2 Other ................................................................................................................. 41 1.6.5 SWOT analysis: Conclusions ................................................................................. 41 2. Pedelecs Industry Analysis ................................................................................................ 43 2.1 Market Segmentation: A Comparison between Pedelecs and Traditional Bicycles .............................................................................................................................................. 43 2.1.1 Industry and Market Segmentation: Framework definition and purposes ......... 43 2.1.2 Industry Segmentation: Application to the Bicycle Industry ............................... 44 2.1.3 Market Segmentation in the Bicycle Industry: Segment identification in Pedelecs and Traditional Bicycles ................................................................................................. 45 2.1.3.1 Growth Opportunities provided by Pedelecs with respect to Traditional Bicycles Market ........................................................................................................... 47 2.2 Main Players in the Pedelecs Industry: Overview. ................................................... 49 2.2.1 Value Chain Analysis Framework ........................................................................ 49 2.2.2 Pedelecs Value Chain: Overview ........................................................................... 50 2.2.2.2 Overview of the Players: Group-set manufacturers, drive-unit producers and OEMs ........................................................................................................................... 52 2.2.2.3 Pedelecs: Cost Drivers Along the Value Chain ............................................... 53 2.2.2.4 Pedelecs: Criteria Driving Customer Decisions ............................................... 55 2.3 Pedelecs: Industry’s Structure Analysis .................................................................... 58 2.3.1 Porter Five Forces Framework ............................................................................. 58 2.3.2 Porter Five Forces Framework Applied to Pedelecs Industry ............................. 59 2.3.2.1 Threat of Entry ................................................................................................. 59 2.3.2.2 The Power of Suppliers .................................................................................... 61 2.3.2.3 The Power of Buyers ........................................................................................ 62 2.3.2.4 The Threat of Substitutes ................................................................................. 63 2.3.2.5 Rivalry among Existing Competitors ............................................................... 64 2.3.2.6 Conclusions ...................................................................................................... 65 2.4 Pedelecs Industry Analysis: Conclusions ................................................................... 68 6 3. Overview of the Pedelecs Market and Industry: Evidence from Italy .......................... 71 3.1 Pedelecs Market in Italy .............................................................................................. 71 3.1.2 Italian Government and Municipalities Policies .................................................. 72 3.1.3 Cycle -Tourism and growth of the potential customer base ................................. 73 3.1.4 Pedelecs Market Potential in Italy: Interview with Pietro Nigrelli ...................... 74 3.2 Pedelecs Industry in Italy ............................................................................................ 75 3.2.1 Database and Research Methodology ................................................................... 76 3.2.2 Players in Italian Pedelecs Market: Financial Statement Analysis ..................... 79 3.2.2.1 Methodology .................................................................................................... 79 3.2.2.2 Bicycle Producers ............................................................................................. 80 3.2.2.3 Motorcycles Producers ..................................................................................... 84 3.2.2.4 Pedelecs OEMs ................................................................................................ 87 3.2.2.5 Components Manufacturers ............................................................................. 90 3.2.2.6 Drive-Unit Manufactures ................................................................................