SWOT Analysis and Marketing Strategy for Electric Scooter Launch

Introduction

When planning to launch a new product, companies should conduct a detailed analysis of the target audience, potential distribution options, advertising and promotion strategies, and other important factors. Such evaluations are necessary for a firm’s product to benefit the intended audience and bring profit. This paper offers SWOT, environmental, and marketing mix analyses for a new electric scooter. This type of transport continues to gain popularity, so the target audience is wide.

SWOT Analysis

Strengths

Firstly, the proposed product has several strengths that increase its chances for success. Electric scooters are environmentally friendly, and since it is critical for many people to support the planet, they are likely to purchase this mode of transportation (Levy Electric). Such scooters are much cheaper than electric automobiles and require less maintenance. These scooters will go longer distances without recharging, and transporting them will also be convenient.

Weaknesses

However, some weaknesses are also present and will have to be addressed. For instance, electric scooters still have to be recharged every once in a while, which may cause issues for some consumers (Rose et al. 2). It may be expensive for an average user to change their scooter’s batteries. Initial development costs are high for the company, and differentiating the product may be challenging due to the presence of many other scooters.

Opportunities

Manufacturing electric scooters offer many opportunities, including raising public awareness about eco-friendliness. With more people using scooters, the authorities will be able to increase fossil fuel costs to reduce emissions and promote similar modes of transportation. Further, scooters require maintenance, so new jobs will appear to meet users’ needs. Lastly, it will be possible to enhance the scooter’s functionality to address a wider target audience, such as the elderly.

Threats

Eventually, some threats should also be considered when introducing the product. A rise in electricity costs may be expected when more people purchase electric scooters and stop using ordinary cars. Competition in the industry is high, and other modes of transportation that are environmentally friendly and more convenient can appear (Nawaro 615). Due to safety concerns, strict governmental regulations on electric scooter usage can affect the target audience’s interest.

Marketing Mix

Product Features and Benefits

The electric scooter will be in several different colors so that each buyer can choose the one they like. The product will have an anti-theft system and a convenient phone stand so that a person can use their smartphone as a navigator. Its motors will make the scooter more energy efficient without affecting its speed, benefiting the user. Lastly, it will weigh less than 35 pounds to make transportation easier.

Target Population

Researchers agree that young people are the main buyers of electric-powered scooters. Thus, Kazemzadeh and Sprei highlight “a higher pattern of e-scooter usage among male, young, and high-educated users” (152). According to Popova and Zagulova, the age category of the target audience is from 18 to 35 years old (5), and other studies also refer to urban citizens (Hardt and Bogenberger 156; Latinopoulos et al.). Environmentally conscious consumers and people with limited mobility are included as well (Levy Electric). Since the audience is quite broad and young, it will be easy to promote the product.

Product Differentiation

To ensure the product stands out and succeeds, it is important to emphasize its uniqueness. Firstly, the scooter will have microprocessors from electric automobiles, which will enhance its speed and efficiency in terms of energy and distance. It will not require additional recharging, which is convenient for students and workers. Moreover, it will include a special alarm system to inform medical services and a person pre-selected by the user if they fall.

Pricing

Penetration pricing is the strategy selected for the electric scooter. According to Nickels et al., it “enables the firm to penetrate or capture a large share of the market quickly” (378). Since competition is high, and there are many alternatives and similar scooters, it will be more beneficial to set slightly lower prices to attract the audience and receive feedback. In addition, since many potential buyers are students, they are more likely to purchase an affordable product.

Place (Distribution) Issues

The business will sell the product directly to consumers in special sporting goods stores. They will be located throughout urban cities, close to universities and large business offices to attract potential clients. The company will also make it possible to purchase electric scooters through its website, which will boost sales. Additionally, locations with scooters for renting will also be established throughout the city, especially near park areas.

Advertising

When considering advertising strategy, it is essential to focus on the product’s target audience. The majority of e-scooter users are young individuals, so it is easier to attract them through social media, including Instagram, Facebook, and YouTube. The company can collaborate with bloggers who have a high influence on their audience. Talking about the benefits of these scooters, bloggers will share how they use them to move around the city, give their followers promo codes for purchases, and encourage their interest.

Promotion

It is also possible to refer to other promotion strategies, including personal selling. Using this method allows to persuade potential buyers that the product can satisfy their needs (Nickels et al. 421). In previous sections of the paper, it was mentioned that this electric scooter is environmentally friendly, which is a major strength of the product. Therefore, the company will send its representatives to large businesses that position themselves as sustainable to offer them to make massive purchases of e-scooters for their employees.

Environmental Analysis

Competitive Opportunities and Threats

Companies manufacturing e-scooters should be mindful of a great number of present and future competitors. Thus, there are many different electric scooters with wide functionality available for purchase, and it becomes challenging to differentiate them and attracts clients. Further, various bicycles and electric cars are appropriate substitutes that are also promoted by governments. Suppliers are not limited in number, but the target audience is now quite small.

Political

Overall, the political factors may be considered beneficial for the e-scooter industry. Firstly, the authorities plan to reduce fossil fuel emissions and discourage the use of cars, meaning that they support modes of transportation that are environmentally and ethically friendly. Additionally, the government actively promotes purchasing electric scooters by offering subsidies (Earthtron EV). Although the use of e-scoters is not strictly regulated, policies may appear soon.

Economical

Economic factors also affect sales of electric scooters, boosting them significantly. Considering that fuel prices continue to rise, it is more affordable for many people to purchase this mode of transportation that only requires to be recharged after being used for a long period of time. What is more, these scooters cost less than electronic cars, and this is another factor that attracts the target audience.

Sociological

Currently, many people, especially the youth, are environment-conscious, which makes them mindful about their purchases. E-scooters can satisfy their need to support the environment and also save their finances, and these preferences are unlikely to change soon (Levy Electric). Further, the target population can be persuaded easily by social media influencers, and the latter can persuade their followers to use scooters instead of automobiles or public transport.

Technological

It is quite interesting to review some technological factors affecting the sales of e-scooters. Firstly, advancements in battery technology have allowed to decrease the time required for their recharging, but the speed and efficacy remain high. In the future, the number of recharges needed can be further reduced. Another important factor is that e-scooters can be improved to become convenient for the elderly and individuals with disabilities.

Legal

Legal implications should be discussed as there are a number of concerns and issues to address. Overall, it is expected that the authorities will focus more on the standardization and regulatory compliance of e-scooter manufacturers to increase the safety and ethics of this mode of transportation. Next, there are many accidents reported with electric scooter users, meaning that special attention must be paid to insurance coverage.

Environment

Concerning the environment, e-scooters are a great solution to many issues that worry the authorities and communities. As mentioned above, people using electric scooters significantly contribute to the reduction of gas emissions, saving the planet (Gebhardt et al. 3). What is more, they help decrease noise pollution because e-scooters are much quieter than any automobiles. It is also beneficial that they do not require frequent repair.

Conclusion

To conclude, the new product discussed in this paper has good potential and can succeed in meeting the needs of the target consumer. Numerous factors impact the e-scooter market, and while the strengths and opportunities of this product make it unique and effective, certain threats and weaknesses have to be addressed. It may be challenging to differentiate the electric scooter because of many substitute options, but upgrading it to be used by seniors and individuals with limited mobility is possible.

Works Cited

Earthtron EV. “Does the Government Give Subsidies on Electric Scooters?Earthtron EV. Web.

Gebhardt, Laura, et al. “Can Shared E-Scooters Reduce CO2 Emissions by Substituting Car Trips in Germany?” Transportation Research Part D: Transport and Environment, vol. 109, 2022.

Hardt, Cornelius, and Klaus Bogenberger. “Usage of E-Scooters in Urban Environments.” Transportation Research Procedia, vol. 37, 2019, 155-162.

Kazemzadeh, Khashayar, and Frances Sprei. “Towards an Electric Scooter Level of Service: A Review and Framework.” Travel Behavior and Society, vol. 29, 2022, pp. 149-164.

Latinopoulos, Charilaos, et al. “Planning for E-Scooter Use in Metropolitan Cities: A Case Study for Paris.” Transportation Research Part D: Transport and Environment, vol. 100, 2021.

Levy Electric. “Who Will Buy Electric Powered Scooters? Meet the Top Target Market Demographics.” Levy Electric. Web.

Nawaro, Łukasz. “E-Scooters: Competition with Shared Bicycles and Relationship to Public Transport.” International Journal of Urban Sustainable Development, vol. 13, no. 3, 2021, pp. 614-630.

Nickels, William G., et al. Understanding Business. McGraw-Hill Education, 2022.

Popova, Yelena, and Diana Zagulova. “Aspects of E-Scooter Sharing in the Smart City.” Informatics, vol. 9, no. 2, 2022.

Rose, Justin, et al. “How E-Scooters Can Win a Place in Urban Transport.” Boston Consulting Group, vol. 10, 2020.

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