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Porter 5 Forces Tesla

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Submitted By julieta1
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After several downturns of the gas-fuelled automobiles market some caused by the 2009 financial crisis in US and the instability of the oil price, the automobile industry has been looking forward to develop new energy powered vehicles. This is the case of the British automaker Aston Martin, in recent days, has announced the deal with the Chinese firm LeTV to develop electric cars and bring them to the market by 2018. Through this initiative, both firms are vying against Tesla luxury car segment where is the forerunner of the new-energy vehicles marker. In this essay, the Porter Five Forces framework will be analysed on the electric vehicle market. The emerging market of Electric Vehicles, in the start-up stage of the industry lifecycle, is capturing the attention of automakers prompting a strong rivalry between incumbents namely Nissan, General Motors, and allowing the entrance to new comers such as Tesla that is now heading the market with a clear differentiated position in the industry.
The attractiveness of the electric vehicle market has been catching the attention of the already positioned luxury automakers, for example, Daimler's Mercedes-Benz, Volkswagen's, Porsche and Audi, but also new comers such as Tesla, this last one, with a strong automobile positioned as current market leader on electric vehicles. To tackle Tesla’s strategy, Aston Martin recently signed a deal with a Chinese tech company LeCo (formerly LeTV) to develop an all-electric car, model RapidE, to compete against the Model S from Tesla Motors, to be released on 2018. The companies said that the collaboration could lead to “a range of next-generation connected electric vehicles [built] on behalf of Aston Martin, LeEco and Faraday Future” [Sharman, A. (2016). Aston Martin signs deal to develop electric car. Financial Times] and will merge by providing their expertise; on one hand, the

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