Nio Developing a Business Model in China Case Solution

1. Pestel Analysis

ii. Economical

As a result of a low inflation rate, more businesses will flourish, consumer confidence will rise, and spending habits will improve. Consumer spending and consumption habits will rise as interest rates on personal loans drop. Businesses like NIO Inc. would benefit from increased sales, consumption, and penetration as a consequence of this. It's important for increasing general consumption habits and the economy's health that consumers spend more since it shows they have more buying power (Sigcha, 2020).

iii. Social

Having a younger population benefits NIO Inc. by increasing its consumer base. As a result, they will prioritize positive consumption, benefiting NIO Inc.’s competitive positioning. Consumers who are more aware of the product's promises and performance will value quality more. This comparison will guide future purchases. The family structure and size affect the frequency and type of purchases (Casañ, 2021).

iv. Technological

The country's technical infrastructure is well-established. Advances in technology are occurring at a fast rate. Technology and innovation are rapidly being incorporated into NIO's operations in order to boost the organization's productivity. To reach customers, NIO has developed marketing and promotional methods that allow for direct contact and input from customers through the ubiquitous usage of the internet (Debnath, 2021).

v. Environmental

Consumers are increasing their demand for recycled products. NIO Inc. has established dedicated recycling drop-off locations. they are also launching a new product line of recycled products aimed at consumers. In the interest of environmental sustainability, NIO Inc. already has a well-defined and controlled process for managing waste and disposing of it environmentally friendly. NIO also operates a small-scale hydroelectric plant to assist with manufacturing operations (Friesendorf, 2021).

vi. Legal

Businesses are required by national regulations to create employment contracts in accordance with the law. These agreements, which cover all aspects of employment, have been authorized by reputable government bodies. NIO Inc. values its employees' well-being and safety above all else, and is always looking for ways to do things better. Toxic culture is avoided by NIO Inc., which ensures that there is no discrimination within the organisation (Qian, 2011).

2. SWOT Analysis

i. Strengths

Nearly all states have retail outlets for NIO Inc.'s goods, and it has a robust distribution network that makes them readily available to a wide range of consumers. Cost-effective production and sales are possible because of their business model. As a result of its five straight years of profit and profit reserves, NIO Inc. is in a good financial position to finance future capital expenditures. They're also active on social media and employ a broad group of individuals (Bonfante, 2021).