...[pic] Nissan LEAF Ace* Advertising I. SITUATION ANALYSIS • CURRENT USER Since Renault-Nissan is introducing “Leaf” for the first time in Singapore, there are no current users for the product in market. • PRODUCT EVALUATION The Nissan LEAF (Leading, Environmentally friendly, Affordable, Family car) is a fully electric, zero emission, 5-door hatch back car that was introduced in 1999 by Nissan. It was first launched in Japan and United States in December 2010 further in Europe and since then it sold more than 27000 units worldwide. Nissan plans to launch LEAF by September 2012 with an on road price of close to SGD 90,000 after a substantial deduction in COE (Certificate of Entitlement) and other taxes based on TIDE Plus scheme by Singapore Energy Market Authority and Land Transport Authority. • COMPETITIVE ANALYSIS Though the Nissan LEAF has many market competitors in Singapore, its main rivals are the Mitsubishi I-MiEV from the electric vehicles segment and the Toyota Prius C from Hybrid segment. The following is the competitive analysis between these two major brands and Nissan LEAF: |Name/ Specifications |Nissan LEAF |Mitsubishi i-MiEV |Toyota Prius C | |Engine |80 kW, 280 Nm Torque |47 kW, 180Nm Torque |HSD Electric motor~40 kW, 90NmTorque...
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...electric cars. With increasing innovation and environmental concerns and with the growth of the social responsibility of companies and individuals toward our planet , the EV might cars gain attraction and popularity. Nissan got the signal early and decided to develop its full electrical car as first mover and technology leader supported by the CEO ( Carlos Ghosn ) vision that EV cars will become soon the dominant auto technology. Nissan strategy was to make a significant change in the industry and start pushing for electric cars that are “affordable, cool, attractive and fun to drive.” After years of research and a large R&D investment the result was the Nissan LEAF , A medium sedan 5 seats car boasting features like immediate torque, silent ride, premium performance, lower fuel and maintenance costs. The vehicle was about the size of a Volkswagen Golf or a Renault Megane , It had an 80 kilowatt electric motor with about 110 horsepower powered by lithium battery that can provide 140 km/h speed. Nissan took a very challenging approach to launch the vehicle , for them to secure a good penetration to the European market , Germany should be the gate , if the company can make it in Germany , it will succeed to lay the foundation to dominate the EV cars in Europe. Analysis , External : the German automotive market : Germany is recognized in the world as the leader for its outstanding automotive industry and excellence in engineering. The German cars are known for values of innovation...
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...External Analysis PESTEL Analysis In order to distinguish and break down the fundamental elements of the company’s external environment it is suggested to use PESTEL analysis (Academy, 2015). Figure below illustrates all crucial external factors, which need to be considered while doing external analysis. PESTEL stands for: Taken from: http://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-analysis In the following paragraphs, each factor is going to be analyzed separately. Political By selling autos in many countries of North America, Asia andWestern Europe (Tesla, 2014), the companyneeds to manage any political issues affecting its business operations. For example,one of the main political aspects influencing on the industry is ecological assurance lawsto stimulate the production of more environmentally friendly vehicles to meet the emanation levels(Environmental-protection.org.uk, 2014). The next essential aspect is US government vitality advance projects for innovative work of new vehicle advances (Department of Energy, 2014). For this situation, numerous automobile producerswill be occupied with entering the new business sector in automobile industry. Economical Nowadays, US market is most attractive for Tesla Motors, because of the economic growth and level of GDP (Tradingeconomics.com, 2015). Figure 1 below illustrates the growth rate of US GDP from 2013 to 2015. Figure 1. US GDP growth rate (%). (Trading Economics, 2015) In addition,...
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...External Environment of The Automobile Industry Table of Contents External Environment of the Automobile Industry Sub Group A , , Introduction- * Purpose of the analysis Overview * Industry Description * History of the industry General Environment Dimensions- * PESTEL Specific External Environment Dimensions- * Porter’s 5 Forces Competitive Environment Analysis- * Industry Characteristics * Strategic Maps Competitor Analysis- Conclusion and Summary- Bibliography and References I Introduction: Purpose of analysis Overview/outline of written report This report will begin with the automotive industry description, followed by the history from the 19th century to the 20th century. Next, the general environment with specialized attention to the external environment through PESTEL (political, economic, social, technological, environment and legal). The analysis will continue the use of Porter’s five forces which will explain the automotive industry in its current state. Competitive environment analysis will describe the industry characteristics, industry structure and the anticipated shifts that are occurring in the automotive industry. Next, the competitor analysis will look at a group of selected competitors, indicating the strengths and weakness of the companies, pin pointing the weakest firm in the industry. The conclusion this will be a summarization of the opportunity and threats...
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...Strategic marketing of Mahindra Reva 1. Introduction After the phase out of G-Wiz from the UK market in 2011, no Reva versions have been launched in this market for four years. During this period, the sales of electric cars market in the Britain have surged, especially in the past two years. Now, Mahindra Reva decides to launch its new product Reva e20, the successor of G-Wiz in the UK, and plans to export another new version halo to the country. The problem is whether the company can re-occupy the market just as it had done 10 years ago. This report aims to provide some recommendations on its strategic marketing objectives in the UK market on the basis of market analysis, its competitiveness, competitor analysis and customer analysis. 2. Market analysis 2.1 Political factors The British government holds considerable support of the electric and hybrid vehicles. Plans for Britain to become the pioneer of a green car revolution were proposed in 2008 by the current prime minister Gordon Brown who advised that electric or hybrid cars would dominate the car industry and produce no more than 100 grams of CO2 per kilo (Environmental Transport Association, 2009). Thereafter, British cities had bidden to become the green cities. For instance, for London to be the "electric car capital of Europe", the local authority had issued the plans to build 25,000 electric car-charging places around the city. The support also had come from fiscal arrangement for the purpose of deploying plug-in...
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...For the exclusive use of T. Song, 2015. 9-714-413 REV: JANUARY 24, 2014 ERIC VAN DEN STEEN Tesla Motors “Tesla is in California, so it is not April Fool’s yet!” tweeted Elon Musk, CEO of Tesla Motors, around 10 PM PT on March 31, 2013. “First profitable Q for Tesla thanks to awesome customers & hard work by a super dedicated team”1 he had tweeted a few minutes earlier. And indeed, on May 8, Tesla announced a net income of more than $10mln on $560 mln in sales.2 Tesla had outsold both Nissan and GM in electric cars in the U.S.3 Its Model S had sold more than the BMW 7 and Audi A8 combined.4 Tesla raised its Model S sales target for its first full year from 20,000 to 21,000 cars.5 Over the next three months, its stock price almost tripled.6 In its 10 years since founding, Tesla had launched both a high-end limited edition “Tesla Roadster” and its “Model S” production car, and was now taking reservations on its upcoming “Model X” electric crossover SUV. Despite a public controversy about its range, the Model S had received the coveted Car of the Year award and earned the highest rating that Consumer Reports ever gave to a car, an astonishing feat for a company that was only at its second car. While some of its most visible EV competitors went bankrupt or halted production,7 Tesla became profitable. Elon Musk wanted Tesla to be a mass manufacturer of electric cars.8 Becoming profitable meant that that goal was within reach. Or was it not? The Car Business ...
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...Tesla Motors Strategic Analysis Report Industry, Company Analysis and Recommendations on Accelerating Transition to a Solar-Electric Economy By Candela Díaz, Michelle Ikoma, Benton Moss, John Son, David Valenstein Introduction The United States automobile industry is one characterized by incumbent behemoth corporations whose distribution channels span the world. Companies like Toyota, General Motors, and Volkswagen form entire segments of their respective countries’ economies and have dominated the auto industry for generations. Yet Tesla Motors, a company started in 2003, represents a disruptive threat characteristic of the information age in which industries are constantly challenged to innovate by smaller, more nimble firms. Led by Elon Musk–a serial entrepreneur who co-founded PayPal, serves at the helm of SpaceX and chairs the board of SolarCity–Tesla Motors evokes memories of Apple in the 1980s and Napster in the new millenium, companies that shook their respective industries. Industry Analysis The United States automobile industry can be divided into three categories: fully internal combustion engine (ICE), hybrid (a mixture of ICE and electric) and plug-in electric (fully electric vehicles). Within these categories, there are two subcategories based solely on price point: luxury and mass market. For this analysis, we define luxury as vehicles priced at $30,000 and more. Tesla Motors operates within the fully electric luxury segment of the market, but has...
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...i n t e r n a t i o n a l j o u r n a l o f h y d r o g e n e n e r g y 4 0 ( 2 0 1 5 ) 1 6 2 5 e1 6 3 8 Available online at www.sciencedirect.com ScienceDirect journal homepage: www.elsevier.com/locate/he Changing the fate of Fuel Cell Vehicles: Can lessons be learnt from Tesla Motors? Scott Hardman a,*, Eric Shiu b, Robert Steinberger-Wilckens a Centre for Hydrogen and Fuel Cell Research, School of Chemical Engineering, University of Birmingham, Birmingham, B15 2TT, UK b Birmingham Business School, University House, University of Birmingham, Birmingham, B15 2TT, UK a article info Article history: Received 15 September 2014 Received in revised form 24 November 2014 Accepted 29 November 2014 Available online 24 December 2014 Keywords: Fuel cell Market entry Tesla Electric vehicle marketing abstract Fuel Cell Vehicles (FCVs) are a disruptive innovation and are currently looking towards niche market entry. However, commercialisation has been unsuccessful thus far and there is a limited amount of literature that can guide their market entry. In this paper a historical case study is undertaken which looks at Tesla Motors high-end encroachment market entry strategy. FCVs have been compared to Tesla vehicles due to their similarities; both are disruptive innovations, both are high cost and both are zero emission vehicles. Therefore this paper looks at what can be learned form Tesla Motors successful market entry strategy and proposes a market entry strategy for...
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...Can Tesla Motors be a viable business? After reading Tesla Motors case from the course pack, it is not difficult to prove that Tesla Motors can be a viable business. We can look at the question using the five forces competitive analysis checklist. 1.The threat of entry is low. The customer switching costs are moderate, they can trade in their current CV and buy a Tesla. Also government encourages EV by providing tax credit and even rebate to customers. 2.The power of suppliers is low. A regular CV usually sourced from more than a thousand suppliers, and the most complex part was the powertrain. However powertrain of a Tesla is nothing more than a electric motor, also they decided to bring the full assembly of the Model S in-house. Not only they made their own powertrain, they also sold electric powertrains to other car manufacturers and provided design services for electric powertrains. 3.The power of buyers is low. Tesla has direct sales store unlike dealership in which dealers take some of the margin. The customers are most likely regular people. 4.The threat of substitutes is moderate and rivalry is low. There are some electric cars on market, Nissan Leaf, Toyota Prius, VW Golf and Ford Focus, but they are all low-end family car. Also Tesla is going to build an even more affordable car in the future competing with BMW 3 series, Mercedes C class and Audi A4. The technology of Tesla is so far ahead among his competitors, the Model S was controlled by software...
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...to be associated in clusters of related industry. Strategy, Structure, and Rivalry It refers the conditions for organization of companies, and domestic rivalry. Porter emphasizes on the role of domestic competition in innovation, quality and improving of competitive advantage. According to the Tesla Motors case B, The Company is seeking to expand and grow their business through international expansion. Tesla had opened 17 new sales locations, extending in North America, Europe and Asia as well as establishing about 50 stores internationally over the next few years (Rothaermel 2013). While Tesla has been entering in foreign markets, the study will describe how Tesla can take benefit from investing a manufacturing plant in India by three primary factors (KPMG 2014) 1. Low manufacturing and labour cost 2. The historical trends: The statistic of foreign investments and ability to successfully trade to be satisfaction. 3. The legal framework: Investment security and flexible financial management. According to the Porter’s nation diamond model, it is being placed in many aspects related industries in term of cost savings and allow Tesla to produce efficient output. Furthermore, here is the critical analysis regarding how Tesla will take benefits from establishing the manufacturing plant in India by using the Porter’s nation diamond model. They were over 1,000 engineering colleges and a growing...
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...Primary Research Method Entering a Japan market, our company, Tesla Motors has decided on using the primary research approaches which is one of the popular market research techniques to obtain the research results that is useful for us. The research area that we are going to concentrate on is the customer in Japan. We will conduct this primary research by formulating a questionnaire as well as face-to-face interview to our respondents. The series of questions in the questionnaire will be created as simple as possible in terms of no double-barreled question, and the language used in our question will be in easy form in order to make sure our precious Japanese respondents are easily understandable. During conducting the face-to-face interview, those respondents do not understand or do not know how to answer the question, our interviewer will explain to the respondent step by step to gain more effective and clearly data from the particular respondents. First of all, the purpose we are using primary research on customer because it provides control each type of questions we will ask to the respondents and the information we gather. Yet, the first-hand information we gather is directly for only our company purpose ("Market Research Methods | Queensland Government"). Our company want to go through this research to understand and capture the Japanese customers’ purchasing behavior like what, when, why, how and where they will purchase the premium electric vehicle in Japan. Although...
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...PESTEL Analysis Political Factors: Political factors greatly affect the automotive industry. President Obama has recently announced new efforts to further fuel efficiency standards for medium and heavy duty trucks. This category ranges from large pickup trucks and school buses to the massive 18 –wheeler tractors. The new standard is expected to increase fuel efficiency between 9% and 23% with the largest trucks receiving the largest reductions (23%). This standard will be applied to 2014 – 2018 models and estimates $50 billion in savings for truck users in fuel over the lifetime of the vehicle. The new greenhouse gas standards will become final by March 2016 (Eilperin, 2014). Another long term plan was introduced by the White House states agreements were made between the president and 13 automakers to increase fuel efficiency to 54.5 miles per gallon for cars and light trucks. This plan is expected to be fulfilled by year 2025. A list of the automakers is as follows, Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota, and Volvo. Combined these companies account for 90% of vehicles sold in US. Achievement of both plans (most formerly mentioned) estimates that consumers will save $1.7 trillion at the pump or $8K per vehicle. Disposable income, and in turn, economic growth is expected to increase and create quality domestic jobs within cutting edge industries across the country. Additionally, these standards also reduce carbon...
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...Investment Highlights GreenTech: Tesla Motors Poster Child for Green Mobility NeXt Up! www.nextupresearch.com With over 1063 Roadsters sold, Tesla, in our view, is the first to achieve commercial scale in sale of high performance electric cars. Our model assumes only sales of 4200 Model S (to be launched in 2012) cars even in 2015, which could prove conservative given Tesla‟s expectations for 20k cars a year. We note that Tesla has booked over 2200 orders for Model S. We expect the NUMMI plant (with a theoretical capacity of 400k cars) in Fremont to give the company ability to expand production at low capital cost. We expect Daimler and Toyota to provide for high recurring revenues in terms of powertrain sales. Unlike many of its competitors, Tesla has developed its own battery pack. We note that battery packs account for 30 – 40% of a car‟s cost, offering Tesla significant advantages as it scales. The company should be able to offer multiple models (such as SUV, minivans, sedans) based off the same platform without having to make significant R&D investment. June 29, 2010 Our valuation of $1.74 - $1.88B reflects stronger OEM sales offset by weaker Roadster revenues. Our revised per share price of $17.01 to $18.37 reflects the recent 3 to 1 reverse stock split and additional shares from the public offering. We note that the IPO (on 6/29/10) is priced at $17 per share. Investment Concerns The cost of ownership for Tesla Roadster is significantly higher than for...
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...* CONTENTS I. Internal analysis 4 A. Key facts 4 B. PSA in brief 4 C. Company overview 5 D. The electric vehicle 6 E. Focus on Peugeot Ion, the tangible product 6 F. Services 7 II. Macro 7 A. Ecological and Economical factor 7 B. Political factor 8 1. Legislations and government interventions 8 III. Micro 8 A. PURCHASE behavior: environmental vs. economical concern 8 B. Competitors offer 9 1. Specialist carmakers 9 2. Renault – Nissan 9 C. Substitutes products 10 1. Other concepts of “green cars” 10 IV. SWOT 11 A. Strengths 11 1. Strong research and development capabilities 12 2. Increasing operational performance 12 3. Partnership with Mitsubishi 13 B. Weaknesses 13 1. High indebtedness 13 2. Autonomy/performances and Charging battery time 14 C. Opportunities 14 1. Strategic alliances 14 2. Poised to benefit from growing automotive markets in China, Latin America and Russia 15 3. Growing worldwide demand for more environmentally friendly vehicles 15 4. Stringent environmental regulations 16 D. Threats 16 1. Intense competition 16 2. Foreign currency risk 17 V. Segmentation 17 A. Criteria of segmentation 17 urrent target of the Peugeot iOn 18 VI. Current strategy 19 A. Objectives of the Group 19 B. Competitive advantage 20 C. Competitive environmental strategies 20 D. First Mover Advantage 20 E. BCG Matrix analysis 21 VII. Questionnaire results 22 VIII....
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...Executive Summary This report provides a strategic analysis on Tesla. The findings consist of an Internal and External analysis of the Automotive Industry focusing mainly on the UK, a resource based view and value chain analysis of Tesla, an analysis of two PR crises and to conclude an evaluation of Tesla’s strategies. 1. External Analysis The main findings from a PESTLE analysis found that legal and technological factors had the most significant affect on the UK automotive industry. In particular UK laws that enforce vehicle CO2 emission standards are forcing manufacturers to produce more eco-friendly cars. In addition, fast changing technology is increasing innovation and creating new market segments such as the Electronic Vehicle. The main findings from a Porters 5 Forces Analysis shows: The threat of new entrants is low, the risk of substitutes is low, the buyer bargaining power is high, supplier bargaining power is moderate and the intensity of rivalry is high. This concludes that the industry is still attractive and profitable for those who are already in it. 2. Internal Analysis An internal analysis of Tesla showed that their man competitive advantage comes from their vast amount of intellectual property and infrastructure. Tesla also has large amounts of capital being invested into the company to further boost production and innovation. 3. PR Crises The two examples of PR crises found that Tesla is a company who take CSR and brand reputation seriously. They are...
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