Scott: yes, our potential market is very small; niche markets always are. We’re talking about the kind of people that can afford to spend 68,000 on a sports car, but care enough about the environment to by an electric one instead of a petrol one. And there are some external issues which are affecting that market negatively, too.
Jessica: OK, are we moving on to threats now?
Scott: yes. So, for example, it may be that once electric car technology becomes more mainstream-and cheaper – then barriers to entry will be lower. We’ll have more competitors.
Jessica: but that could present some opportunities, too.
Scott: Really? Like what?
Jessica: well, it means that the big car manufacturers will probable avoid a high-risk market like ours and concentrate on the mass market instead; that means less competition for us.
Scoot: you’re probably right. And the government’s electric cars incentive is designed to encourage mass-market electric cars, which won’t mean more competition for us