As it is defined within the textbook case, reverse innovation refers to innovation that
Is obtained first in the developing world (Peng, 2017). In terms of this case study,
businesses in the electric vehicle market have exemplified reverse innovation within
China. This boasts some strengths that should be utilized as well as weaknesses that
should be mitigated.
Electrical vehicle makers in China have several resources that serve as strengths
including price point, population demographics, and environmental benefits. The
electric vehicles are priced under $5,000 which makes them affordable with income
levels rising (Peng, 2017). This price point coupled with the increasing amount of
individuals moving to rural areas in China due to over population in the cities proves that
electric vehicles are in high demand. Because citizens are driving from rural areas with
