With the failure of the electric car concept in America what …

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Eliica (Electric Lithium-Ion Car)

With the failure of the electric car in America what impact this have on the lithium ion global supply chain? 2)

Posted on December 2, 2011

If, there are 30 CDs produced and demand is at 20, the price will not be pushed up the supply more than demand. In fact after the 20 have been satisfied their CD purchases, the price of the CDs may drop as CD producers attempt to the remaining ten CDs. The lower will then make the CD available to people who had previously that the opportunity cost of the CD at $20 was too high.

While the world of and demand is practically speaking a more complex than the example, I used it because frankly it is the best way to illustrate manufacturers of the lithium ion batteries in electric cars will be in 2012 as the anticipated pent-up for their product hasn t and won t any time soon materialize.

There are of course a number of questions this situation including the fact that a CD, where there is no shortage of devices and thus the ability to product can result in its movement, the paucity of electric cars on the where is the market for even a basement battery unit?

this limiting context ripple effects will be throughout the industry and does disequilibrium have the potential to impact non-related sectors or perhaps to a certain extent the economy as a

While true economic in which the allocation of goods is at its efficient because the amount of being supplied is exactly the as the amount of goods being is in reality limited to a conceptual the real-world give and take achieving this balance is  However, and as is the case with the car (the demand) and the batteries supply), there is no real ebb and elasticity.  In short, the battery perhaps fell for their own (and the hype of the electric car and stockpiled product for which is no ready market regardless of

Adding further insult to you can t just dump these in the nearest junk-yard meaning that excess is on hand, you have to it.  It is kind of like owning and acres of land in the South in that there is nothing that you can do with said estate.

Unless there is a way of converting batteries so that they can useful in all of the mainstream products are powered by lithium ion batteries, bottom line is going to a massive hit.  Perhaps pushing some companies to the of bankruptcy.

It is at this point the fall-out factor kicks high gear.

To begin this mark the turning for the old supply model which, to the book How Companies Win   is now beginning to new solutions in a world in which the for the first time ever, is in the driver’s seat of the global ?

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In referencing the emergence of the new economy includes dot.com boom and survivors such as Amazon, eBay, Orbitz, and Google, the How Companies Win indicated that the new demand economy is based on what want, rather than the suppliers already have.

is at the heart of what has been the era of oversupply which is as follows:

Oversupply is a situation significantly more supply than there is demand to it. Oversupply is often characterized by a of differentiation, with price the primary factor underlying decisions. As a consequence, pricing virtually disappears, and organic and profitability become increasingly to achieve.

The authors then in an era of oversupply it is now imperative that construct a framework that and aligns everyone toward not just the current but the latent and demand of your highest customers and consumers .

Unfortunately and for a variety of reasons the car market does not fall this all important category of high profit customer  Although in a kind of ironic product differentiation is not the problem as alluded to earlier, can lower stimulate sales.

In the end it is the absence of that will be the undoing of companies, potentially creating in the global supply chain may even have a spill impact on satisfying the needs of profit customers and consumers in markets.

To state the obvious, I the feeling that this is a in which the ending is still written and as a result I along  many others will be the events in earnest as they over the coming year.

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