Question

Ford Rolls Into Smart Bikes

When Henry Ford started the Ford Motor Company in 1903, it is unlikely he ever imagined that one day his firm would be designing electronic bikes, nearly 115 years after the first Ford Model A rolled off the production line.

Yet from today’s perspective, it is not entirely surprising Ford chose to invest in the new e-bike prototypes, which seem to fit well with the auto maker’s move into more environmentally-friendly vehicles. The prototype bikes are compact, highly customizable, and remarkably practical. Ford’s third and newest e-bike prototype, the MoDe:Flex, syncs with a smartphone and smartwatch app to provide riders with useful information before and during the trip, including weather conditions, traffic congestion, parking costs, and turn-by-turn directions.

Along with traditional peddling power from the rider, the e-bike also includes a battery assist system to help get up steep hills and provide additional power based on heart rate input from the rider. An ultrasonic sensor on the back of the bike serves as a safety feature and alerts riders of approaching vehicles by inducing vibration in the handlebars. Ford believes the technology in its e-bikes will make multimodal travel more efficient. And instead of serving solely as an alternative transportation method, Ford e-bikes are designed to closely integrate with vehicles. For instance, the e-bike smartphone app can be used to locate and unlock the cyclist’s vehicle, which can then be used to charge the e-bike’s battery.²²

Discussion Questions

1. At what stage in the product development process are Ford’s e-bikes?

2. If Ford’s e-bikes are released to the public, what type of product would they be? Convenience, shopping, or specialty products?

3. If Ford’s e-bikes are released, how do you think the market would react? Do you believe the e-bikes would quickly jump to the growth stage of the product life cycle, or would they stay in the introductory stage for an extended period of time?

Answer 1

At what stage in the product development process are Ford’s e-bikes?

In the product development lifecycle, there are 8 different phases. These are:

• Idea generation
• Idea screening
• Concept testing
• Business analysis
• Product development
• Test marketing
• Commercialization
• Review of market performance

With respect to e bikes, for is current at the product development phase. In this phase, they are developing different prototypes of the bike. In this stage Ford will develop multiple versions of the e bike and share them with a sample group, who will test the bike and provide feedback about the different aspects of the bike like usability, convenience, cost of maintenance etc.

If Ford’s e-bikes are released to the public, what type of product would they be? Convenience, shopping, or specialty products?

In my opinion, the product will be a convenience product because:

1. It will facilitate multi modal transport
2. As mentioned by Ford, the smartphone app will sync with a smartphone app optimizing the route taken by the rider, enabling them to reduce the travel time
3. It will have battery assist that will help the rider to climb steep inclines without fatigue
4. It will monitor the traffic, reducing the risk of accident for the rider
5. It’s smartphone app will have the feature to locate the bike and locate charge the bike, making it easier for the user to locate and maintain the bike
6. It is not a shopping product because it does not offer any special features for Ford vehicle owners that it offers to its other customers
7. Now, looking at the Ford e bike, it is two products, an electric bike for multimodal transport and a smart phone app for convenience and connectivity. However, both these products are already present in the market and Ford’s offering in its current form in not a new offering

If Ford’s e-bikes are released, how do you think the market would react? Do you believe the e-bikes would quickly jump to the growth stage of the product life cycle, or would they stay in the introductory stage for an extended period?

In my understanding, the product will not quickly jump to the growth phase of the product life cycle. Reason being:

1. It is not a new product in the market.
2. It is not clear, what Ford wants out of its e-bikes.
   1. 1. Come across as an environment friendly automobile manufacturer
      2. Diversify its automotive business to a transportation and connectivity business
   2. Whom they want to compete with
      1. Bike manufacturers
      2. Smart phone apps
      3. Multi modal transport and bike share sharing platforms
   3. What is their target market?
      1. Vehicle owners who need an alternative carrier for last mile connectivity
      2. Customers who want to buy a new e bike
3. Ford e bike does not do anything radical
   1. In the current market, there are several e-bike manufacturers with whom Ford will have to compete for market share.
   2. It is not clear that as a buyer why will someone prefer Ford e-bikes over the current leading players in the market

Ford bikes will become popular due to the associated brand value and recognition of it’s parent company. But Ford will have to spend a lot of time building the e bikes brand and communicate a clear message about the brand. Till that time Ford’s e-bikes will remain in an introductory phase of the product life cycle