T3 Motion, Inc. – Porter’s Five forces Analaysis 2012

1. T3 Motion is in a green hi-tech industry, in which requires massive investment in the beginning and continuous financial support from either internal or external resources. Besides money, this industry highly relies on high level technicians and scientists, both are rare in the labor market, so the entry barrier of this industry is high, the threat of new competition is low.
2. Electrical vehicles, as an environmentally friendly substitute of traditional gasoline-engine or diesel engine vehicles, are just starting to emerge as a market. However, in this market some company has already won the recognition, such as Segaway. The substitute products not only come within the green industry, others may include bicycles, motorcycles, or golf cars. So the threat of substitute products is high.
3. Electrical vehicles, as an environmentally friendly substitute of traditional gasoline-engine or diesel engine vehicles, are just starting to emerge as a market. However, in this market some company has already won the recognition, such as Segaway. The substitute products not only come within the green industry, others may include bicycles, motorcycles, or golf cars. So the threat of substitute products is high.
4. Currently, over 70% of our T3 Series suppliers are local suppliers who provide products and services to low volume early stage development companies. As the vehicle design has become stable and sales volumes have increased, the company has begun our transition to incorporate a global supply chain. We have made significant progress in establishing relationships with suppliers who service volume production stage companies. These components will be shipped to our operations facility in Costa Mesa, California for final assembly, test, inspection, and shipments to our customers. Even the global supply chain strategy