Académique Documents
Professionnel Documents
Culture Documents
On
Tesla Motors
Sairam: PGP/01/017
Himshikha: PGP/01/022
Shiva: PGP/01/023
Product Profile
Introduced in 2008
0 60 in 3.9 seconds
$100,000 - (Federal Tax Rebate)
200 miles on one charge
0 emissions
Target market The Environmentally friendly CEO
You dont have to go slow to go
green
Supercharging Growth
Supercharging Growth
Supercharging Growth
Tesla Strategy
1. Develop a high-end, high performance sports car to prove that electric vehicles are
both stylish and efficient. Use the sports car to develop core intellectual property and
patents.
2. Introduce a premium sedan that competes with brands like BMW, Mercedes and Audi
3. Produce hundreds of thousands of low cost premium electric vehicles for mass
adoption
Competitors
Key Activities
Electronic
manufacturing
ser vices model of production
Designs and builds bulk of the PCB
assemblies in the car.
Manage its own chain of car
dealerships all throughout the
world
Developing charging stations
Gigafactory batte ry plant in
Nevada in partnership with
Panasonic
Key Resources
innovated powertrain design
Co-located with Apple, Google,
NVIDIA, ORACLE, CISCO and HP in
the San Francisco San Jose
technology corridor, which speeds
up the pace of innovation.
Excellent top management team
hired from top manufacturing
and technology companies, led by
CEO Elon Musk
Value Propositions
High end electric car
Customer
Relationships
Cost Structure
Manufacturing plant costs are the largest overhead for Tesla.
Federal Loans for environmentally friendly designs help fund significant part of
the operations. $189 million in Federal loans were outstanding in February 2012.
Governments in most countries give subsidies to electric car manufacturers as
their environmental foot print is very low or 0.
Batteries are significant part of the cost of the car.
Channels
Customer Segments
High
end,
environment
conscious, luxury and sports
car segment is the primary
target of Tesla
Revenue Streams
Licensing agreements with Toyota and Mercedes for Electric Power Train
Designs
Sales of electric sports utility vehicles and luxury cars through its dealership
net work
Tesla intends to sell its OEM batteries for non-automotive applications, which
will enable it to increase production volume and reduce unit cost
SWOT Analysis
Strengths
High Demand for
Tesla Products
Niche Market where
it is only firm
Innovation
Brand Image
Good PR
Excellent vehicle
design
Only all Electric
commercial
luxury/sports car
Weakness
Tech still needs
development
Low Brand
Awareness
Uncertain Resale
Value
Low amount of
Tesla service
departments
Few consumers
distinguish between
a hybrid and
electric
No economies of
scale
Opportunity
Dominate a niche market
Build enough brand
loyalty to lock
competitors out
Use momentum to
leverage into more
markets
Growing market
Increasing oil & gas
prices
Rising consumers
sentiment
Government support
Young industry with no
set standards
Large International
market potential
Increasing awareness and
support for
environmentalist
Threats
Competing firms
have lots of capital
to develop tech
Other Automakers
have better brand
awareness
Deep Pocket
Competition: BMW,
Acura, Mercedes,
Porsche, Lexus
Decreased
consumer spending
Loss of govt.
subsidies
Analogs
Power charging stations
Leaps of Faith
Technologically savvy and
environmentally conscious
car buyers will go electric
if given proper
infrastructure
Operations: All the cars are manufactured in Northern California with all the operations. Their manufacturing process is very highly automated with multifunctional robots that can generate more than 83 cars every day. As mentioned before, TESLA design and produce their own cars and they have control over the
quality and development.
Outbound logistics: TeslaMotors have their own stores across 18 countries where consumers can easily access and take benefit of the electric cars. They
manufacture vehicles based in the demand, and the orders personalized online. This only works because of their approach to the industry and customers are willing to
wait.
Marketing and Sales: TESLA does not employ any advertising agency and also doesnt spend on traditional marketing. However, the firm develop they own network
by their own stores that are located in high and wealthy districts so that they can interact brand awareness. This created a lot of customer awareness.
Service: TESLA also own their own service centers in Europe, North America, and Asia. To enhance the value of their product, TESLA has built and has expanded their
free super-fast charging station networks for their consumers cars. Furthermore, the firm also offer their consumers 50,000 mile warranty policy to grow
consumer confidence in their products.
Infrastructure: TESLA Motors has a horizontal organisational structure. The firm has the advantage from this horizontal organisational
structure because of faster decision making and the better communication process, which reduces delays. Furthermore, this structure has a
small management team and has strong leadership.
Human Resource Management: TESLA uses High Street Performance for hiring and employing the talented workforce because of the
growing fast on the global market. Moreover, the firm provides their employees with company shares, which motivates managers so that they
adopt strategies that will grow the share price of TESLA.
Technology Development: TESLA is a firm which is mainly based on the operation and development of the advanced technology. The firm
trusts on those innovations and only employs them through the development, customer-facing processes, and manufacturing. Every aspect of
innovation and creativity is essential at the firm and it plays an important role in the long term and advanced development of TESLA.
Procurement: TESLA has been developing good partnership with strategic suppliers such as with Panasonic which allows each party to take
advantage of the information and allows the firm to make short term agreements with other suppliers in case of any failure in providing the
right components.
Product Strategy
Promotion
Distribution
Price
VRIO Framework
V
R
I
(Valuable)
(Rare)
(Costly to imitate)
(Organized to
capture value)
Massive car manufacturers like Toyota and Daimler are buying the powertrain
components from Tesla to use on their vehicles.
Tesla cars are the only ones that have a range of 300 miles on a single charge because
of this particular powertrain technology.
All big car manufacturers have created pure electric powered models but none can
match the performance and efficiency of Teslas cars
Value Proposition
ser vices
Motor only
Ownership-as-usually;
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