tesla motors saurav sengupta danielle darisse michael easton nicholas lawrence julian saldana amed...
TRANSCRIPT
TESLA MOTORS Saurav Sengupta
Danielle Darisse
Michael Easton
Nicholas Lawrence
Julian Saldana
Amed Tovi
Tesla commercial
Mission/VisionTo produce a fully electric car, rather than a hybrid.
To create a better looking tomorrow by producing
efficient, zero emission electric vehicles without too
many compromises.
To switch from mine-and-burn hydrocarbon economy to a
solar electric economy
Goals- “Accelerate the world’s transition to electric mobility with a full range of increasingly affordable cars.”
Core Competencies and Sustainable Competitive Advantage
Advanced battery technology
Working with Toyota and Daimler
Top-Down vs. Bottom-up approach
- High performance sports cars to affordable family cars
helps avoid the competitive prices that other companies
are facing.
INDUSTRY ANALYSIS
Tesla produces high-end electric vehicles (EV)
Starting price of $89,000
Only produces fully electric cars
Highest safety rating of any car on the market
Working in collaboration with Toyota to make EVs (Toyota
RAV4 EV)
Also sell their batteries to competitors to foster innovation
COMPETITOR ANALYSIS
Electric Car industry, Hybrids
Main competition consists of Hybrid Vehicles, electric
and gasoline powered alternatives
Key competitors consist of General Motors, Ford,
Nissan
COMPETITOR ANALYSIS
General Motors• #1 sales leader with the hybrid Chevrolet Volt• Less charge, Lower rage and performance• Lower MSRP at $26,685
Ford • Secondary Sales leader with the hybrid Energi• More range than the Model S but as a hybrid;
emissions are much higher
Nissan• Rising competitor with the Nissan LEAF• 100% electric like the Tesla• Lower range but lower price point
Helpful Harmful
Internal Strength:-Great expertise in the field of electric vehicles-Luxurious brand receiving attention for a combined sporty, luxury, eco-friendly approach
Weakness:-Priced much higher than competitors-Small start-up business with high production costs
External Opportunity:-only fully electric vehicle with high performance-increasingly environmentally conscious world with more demand for fuel efficient, environmentally friendly vehicles
Threats:-Hybrids are more affordable electric/combustion engine vehicles that are a safer bet for many consumers-Pricing strategy and order placement puts Tesla at a disadvantage for high demand orders
COMPANY ANALYSIS
Tesla is relatively new to the electric car market
Specifically concerned with making fully electric vehicles rather than Gas or Hybrids
Gives the Company the advantage of being focused on one unique type of product
Luxurious brand name
High performance while being fully electric
Priced much higher than competitors
Small start-up business with high production costs
Hybrids have similar performance for less
Helpful Harmful
Internal Strength:
-Great expertise in the field of electric vehicles
-Luxurious brand receiving attention for a combined sporty, luxury, eco-friendly approach
Weakness:
-Priced much higher than competitors
-Small start-up business with high production costs
External Opportunity:
-only fully electric vehicle with high performance
-increasingly environmentally conscious world with more demand for fuel efficient, environmentally friendly vehicles
Threats:
-Hybrids are more affordable electric/combustion engine vehicles that are a safer bet for many consumers
-Pricing strategy and order placement puts Tesla at a disadvantage for high demand orders
Consumer Analysis The Premium electric car maker
Few competitors are • Nisan Leaf • Chevy Volt
Base Price of the Model S - $62,400 including a $7,500 tax credit
Appealing designs will get the attention of car enthusiasts
Doing well in Sales
Tesla sold 4,714 cars in 2013 (more than Porsche and Land Rover)
Consumer saves $4,248 annually based on 30k miles driven
Market-Product FocusMarketing and Products Objectives
Target Market
Have a vehicle that does not require gasoline
Perform among the top premium car makers
Green future
More affordable in near future
High-end car market (BMW, Audi, Porsche…)
Upper middle class
In future a family product
Consumers looking to go green
Market-Product Focus
Positioning
Tesla has one car to focus on
Performance (Power, driving range, Cosmetics)
Nissan Leaf miles VS. 250 miles with Model S
Tesla’s ionic design
Only electric car in its Price range
Least amount of CO2 emissions and unmatched efficiency
Category of premium cars and electric cars
The advantage of being green without compromising the luxury of
a quality
Trying to put itself in a position similar to the BMW “Ultimate
Driving Machine”
Product Strategy
Tesla has 2 current product lines, with a third in pipeline
Roadster- Electric Sports performance car• Comparable to Ferrari and Porsche in
performance• Energy efficiency better than a Prius
Model S- Electric Luxury Sedan• Zero emission• Performance comparable to top luxury sedans• Half the price of the Roadster
Tesla’s concept- Provide for the needs while keeping in mind the eco-friendly wants of the consumer
PRICE STRATEGY
Roadster was their flagship model priced as luxury item with
limited availability which increased the product’s popularity
Justification of the price- to accumulate resources to further
the company goals and provide a more reasonably priced
product
Model S onwards priced similarly to other mainstream product
Later products aimed toward middle and lower-middle class
PROMOTION STRATEGY
Tesla operates with nearly no cost in paid advertising
• Compared to $25 million spent on advertising by
Nissan on Leaf EV
Much of the publicity generated through the use of
social media
Use of Tesla stores to promote their electric vehicles
• Using Apple stores method
CHANNEL STRATEGY
Tesla takes a unique approach in their distribution
strategy compared to other auto manufacturers.
Tesla has few dealerships therefore operates mainly
through their website and Tesla stores.
Tesla employs the pull strategy due to their inability to
meet current demand of orders
Customer orders are made-to-order and are delivered
directly to the consumer