Local Motors Case Study Examination


Local Power generators: Designed by the Crowd, Created by the Customer

Case Study Analysis

Table of conten

Stand of content2


Local Motor's business structure vs . " typical” models3

The CANVAS model3

Client Segments3

Worth propositions3


Customer Relationships4

Revenue Streams4

Key Resources4

Key Activities5

Key Partnerships5

Cost Structure5

Evaluation in the business model5

Customer involvement according to NIKE6

" LM template” in the garments industry7



The financial crisis beginning in 08 and the subsequent recession struck hard the auto sector. Traditional auto makers had to understand that substantive changes had been needed to be able to maintain their particular strong placement in the market. Client preferences altered towards more fuel-efficient and smaller cars which were more inexpensive to keep. The changing business environment made possible for a number of start-ups to outstand from the masses and help to make their success in the car industry with supplying innovative solutions for car purchasers. Community Motors (LM) in one of the new car-makers with a one of a kind and book business model. Inside the following an analysis with this business model will be presented based upon the FABRIC model which is followed by an analysis about various other examples in which a similar unit could work. Local Motor's business model versus " typical” models

Before you go into comprehensive analysis of LM's business design it must be mentioned in what important aspects performs this model differ from those of classic US carmakers. One of the most significant concepts of LM's model is an energetic community of car fans, designers and customers who also take part in the appearance of future LM cars. The city allows LM to gather useful, firsthand info on customer choices and form its supplying accordingly. Traditional car makers usually do not have these kinds of a clear photo about what buyers want. One other key strategy in the version is consumers' contribution to the assembly means of their autos which provides them a unique knowledge and for LM free time force. In comparison to big car manufacturers LM has a distinct concept about what to offer to the market. That want to make classic cars but it wants to believe out of the package and make novel and innovative cars instead. LM does not have size and the sufficient assets to provide the mass market. That focuses on a much narrower segment of customers and tries to adjust to local personal preferences taking into consideration differences in market features between different US urban centers. The PAINTING model

Inside the following the business design of LM will be offered in detail using the framework in the CANVAS version. First the various building blocks in the model will probably be described after which based on these kinds of building blocks the strengths plus the weaknesses of LM's model will be discussed along with suggestions for conceivable changes. Client Segments

LM focuses on an industry niche and targets those consumers who have are searching for fresh technologies once purchasing vehicles and are attracted by new edition models. This wants to reach those car lovers who be pleased to take part in mount process of their particular car. Early on purchasers of hybrid vehicles and purchasers of system cars for example form element of LM's concentrate on group. Value propositions

The worth proposition of LM consists of a combination of a product or service and different solutions. The product is actually a fuel-efficient car with a exceptional design manufactured by one of the people of LM's online community. The car is certainly not made in mass production which delivers the significance of rarity to the customer. Buyers also get the assembly knowledge as they take part in the process of car making. This is often an important benefit for those customers who happen to be obsessed with cars and think about this as a one of a kind opportunity. They will also discuss this activity with friends and family members which most of them might...

References: Dencker, G., 2010. NIKE id – the initially example of mass customization driving a car revenue? [online] Available at: http://www.crossroadinnovation.com/nike-id [Accessed 7 Mar 2014]

Castells, Meters., 2000. The Rise in the Network World - The Information Age: Economy, Society and Culture Vol. I. Cambridge, MA; Oxford, UK: Blackwell.

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