Case Study #1: Riversimple LLP - Hydrogen Powered Vehicle

Yesterday, U.K. based Riversimple LLP unveiled a prototype of a two-seat, hydrogen powered car promising fuel consumption equivalent to 254 miles a gallon. The car can reach 50mph and travel 240 miles on one tank of hydrogen. The company plans to lease the car for $325 a month for the vehicle's expected 20-year life. Leases would include refueling and the company hopes to begin production by 2013 (Wall Street Journal, Company Unviels Prototype of Hydrogen-Powered Car, June 17, 2009)

This is a good example of stratelysis. It is risky to launch a product in an addressable industry that is contracting. However, Riversimple recognized consumer demands for increased fuel efficiency, and built the vehicle with those ecological sensitivities in mind. Rather than accelerate an official launch into the marketplace for a solution not widely understood or used by its intended buyer base (who probably drive some combination of gas, diesel or hybrid powered vehicles), Riversimple is building brand loyalty and hydrogen technology acceptance through its leasing program while generating some revenue through that same program.