...which espouse the objectives and goals of that organization (Diana Wicks, 2011). The process of the strategic management is continuous and it changes with the evolution of the organizational goals and objectives. 1. Considering the 3 updated news, the following can be definitely mentioned. Tesla model Y is going to be an absolutely new lower cost electric SUV. This one is said to have falcon doors as one of the future products. At the same time Elon Musk has also mentioned that “there will be a model 3 and a model Y, one of the two will”. This version is going to have 70 kilowatt power pack (John Voelcker, 2014). Tesla Roadster 3.0 is going to have a $29000 battery upgrade which will have a range of 300 miles or more. The previous version of the roadster was rated about 245 miles and this new version will have 330 miles. The complete roadster kit announced recently comprised of two additional sets of changes, which is the body kit that reduces the aerodynamic drag and the replacement tires which offers lower rolling assistance. This would add a boost up to 400 miles (John Voelcker, 2014). The Tesla model X, known to be the brand new safest SUV, because these cars co-relate directly in case of any probability of an accident or injury, according to the federal test. For the frontal crashes, the lack of an engine block will allow the engineers for having a much longer distance for the crumple zone. Also the low set battery pack and the extremely low center of mass, the rollover...
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...Tesla Motors 1. Should BMW expect Tesla to grow into a strong direct competitor like Audi, versus Tesla being limited to a niche or being just a flash in the pan? PRO Tesla is already profitable; costs will go down over time (especially battery); incredible product and it will be even more attractive once “newness” factor [fear of something new] goes away; Resale value guarantee; most people don’t need range and battery will improve and can be swapped; hard for traditional manufacturers to make electric cars; proprietary charging stations. CON Tesla is not profitable; costs will rise and price has to come down; niche product [less attractive once newness wears off]; people don’t trust electric cars; range anxiety; If (once) market takes off BMW just jumps in [let tesla experience learning costs]; many other alternative energy sources. 2. Is Tesla at a competitive advantage or disadvantage? How will that evolve? 3. What do you think of Tesla’s entry strategy? KISS [Keep its strategy simple] they build a better car, faster and at lower costs. BUT, easily imitated. 4. What barriers did it have to overcome? Brand, distribution network, service network, production plants, production know-how, supplier network, design and costs know-how, lack of acceptance of ‘electric car” 5. Should Nissan learn something from Tesla’s approach? Probably “no”. 6. Will other firms follow in Tesla’s footsteps? Probably no. 7. Do you think Tesla’s secret...
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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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...STRATEGY / SECTION: D300 Tesla Motors Inc. Case Synopsis Date: March 17, 2014 [Edited] Yafeng(Elsie) Liu Yingying Kang Hao Wu Chan Chen Edith Hon Firm history Background Tesla Motors, Inc. is an American company that was founded in 2003 by a group of brilliant and innovative Silicon Valley engineers. These engineers proved that electric vehicles could be awesome substitute of the gasoline powered cars. Tesla not only designs, produces and markets electric cars, but it also provides advance electric vehicle powertrain components to other automakers including Daimler and Toyota. (Tesla Motors) Tesla headquarters is located in Palo Alto, California, and it has wholly-owned subsidiaries in North America, Europe and Asia. At present, Tesla has more than 2000 employees. It has 31 stores and service locations spread worldwide, and more stores are expected to be opened in the future. In 2012, Tesla opened its first store in Toronto as the first step to enter the Canadian market (Tesla Motors). Tesla aims to offer high-performance and electrically powered vehicle at a price affordable to the average consumer. In 2008, Tesla first gained widespread attention by producing the Tesla Roadster, a solely electric operated sports car. Tesla then expanded its technological advantage to the luxury sedan market. Model S, a zero emission and sustainable luxury sedan, was then introduced as their second vehicle to the electric vehicle in 2012. The third model named Tesla model X is scheduled...
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...Tesla Model 3 prospects in China Tesla Motors unveiled its most affordable car so far, the Model 3 at the end of last month. The company is offering a reservation for a down payment of roughly $ 1000. As a result of such easy deal for such a charming thing, the company has received almost 400,000 pre-orders for its new Model 3 sedan. The excitement was already evident with hundreds of Tesla fans across the US and other main markets seen lined up outside dealerships before the car was even officially unveiled, and Tesla received more than twice the Model 3 pre-orders it expected. Model 3 starts with $ 35,000 for its basic model which has at least 215 miles of range. However, there is close to a year before the production version comes out. It...
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...Industrial Marketing Management 40 (2011) 219–230 Contents lists available at ScienceDirect Industrial Marketing Management Customer value anticipation, customer satisfaction and loyalty: An empirical examination Daniel J. Flint a,⁎, Christopher P. Blocker b, Philip J. Boutin Jr. a a b The University of Tennessee, Knoxville, TN, USA Baylor University, Waco, TX, USA a r t i c l e i n f o Article history: Received 22 October 2009 Received in revised form 30 January 2010 Accepted 27 May 2010 Available online 31 July 2010 Keywords: Customer value anticipation Service dominant logic Customer loyalty Customer satisfaction Customer value a b s t r a c t A service-dominant logic by definition is inherently customer oriented and relational, reflecting deeper and more complex connections between suppliers and customers. The service mindset driving increased collaboration enables suppliers to have deeper insights to what customers' value. Customer value perceptions are dynamic, sometimes in constant flux, necessitating anticipatory capabilities on the part of suppliers. Yet, there is a notable lack of discussion about customer value anticipation and related empirical evidence of whether or not customers care if suppliers anticipate what they value. The authors report on two survey studies that test using structural equation modeling the notion that suppliers good at anticipating what customers will value realize higher customer satisfaction and...
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...TUGAS KELOMPOK MANAJEMEN STRATEGI CASE ANALYSIS: TESLA MOTORS: CHARGING INTO THE FUTURE? [pic] KELAS G-141, GROUP 5 DARIL BENAYA YOYADA B. - 1406513426 DEA AYESHA WIDYASWARI - 1406513451 DIAH PURNAMA SARI - 1406588830 DIAN MARSISKA - 1406588843 HENDRAWAN - 1406513754 PROGRAM MAGISTER MANAJEMEN FAKULTAS EKONOMI UNIVERSITAS INDONESIA 2015 TESLA MOTORS: CHARGING INTO THE FUTURE? A. CASE SYNOPSIS Tesla Motors merupakan perusahaan yang ditemukan pada tahun 2003 di Silicon Valley, berfokus pada industri desain, manufaktur, dan penjualan mobil elektrik tanpa emisi serta bagian rangkaian penggerak listriknya, semacam baterai lithium-ion, yang nantinya dibeli dan digunakan oleh pembuat mobil lainnya. Sejak didirikan, Tesla Motors telah melakukan terobosan-terobosan signifikan dalam pasar kendaraan elektrik / electric vehicle (EV) melalui teknologi rangkaian penggerak listrik. Tesla tidak menjadi satu-satunya manufaktur EV; Chevy dan Toyota merupakan pesaing terberat Tesla dalam pasar EV. Sampai saat ini, kendaraan yang diproduksi Tesla memiliki rentang jarak kendara yang lebih luas dan kinerja yang lebih baik, tetapi ancaman dari para pesaing ini tentunya tidak bisa diabaikan begitu saja. Tesla memiliki keterbatasan dalam kemampuannya memproduksi kendaraan disebabkan oleh ukuran dan aksesnya kepada sumberdaya yang membuatnya mengalami kerugian dibandingkan para pesaingnya. ...
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...VALUE: Tesla creates value by having attractive features such as a sleek, distinct design, giving them a differentiation advantage. They possess leading technology and a state of the art production facility, which lowers costs of producing Generation 3 vehicles. Tesla creates customer value through an online community and unique marketing strategy. Their cars run on alternative energy which creates value in the eyes of the customer as rising costs of gasoline make consumers less price sensitive to purchasing an electric car. Increased environmental awareness increases value of its products as individuals are concerned with their carbon footprint. RARE: Rare geographically, as they are mainly centered around growing cities with wealthy consumers. Rare in terms of physical structure as there is no other premium, electric, sports car like it in the world. Tesla's are also rare in terms of availability as they are self-operating and distributing. IMITABILITY: Tesla possesses deep intellectual property protected by patents, making their designs and methods hard to imitate. They have a competency in designing and building engines such as the S platform, electric power train, and cell to battery progression. Although the rising interest in electric vehicles could threaten Tesla's differentiating factor, consumers considering purchasing an electric vehicle have limited choices, and Tesla offers the highest quality, justifying its high price. Tesla serves a niche market and...
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...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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...gasoline only vehicles that will help decrease the environmental footprint of Lotus Rental Cars. Cost of Vehicles The current vehicle, the 2014 Lotus Evora S, is the primary vehicle in Lotus Rental Car fleet. The Lotus Evora S has a base price of $69,965 to $81,465 (Hearst Communications, Inc., 2015). The cost of the Lotus depends on what options and features are added to or come with the vehicle. The two new alternative fuel vehicles to be added to the fleet, the 2014 Cadillac ELR and the 2014 Tesla Roadster Model S, cost around the same as the Lotus Evora S. The General Motors (2015) website shows that the Cadillac ELR has a base price of $75,995 to $82,135. The price of the vehicle changes depending on what size engine, options, and features are put into the vehicle. The Tesla Motors (2015) website has the Tesla Roadster Model S priced from $71,070 to $105,670. This price range also depends on the features that are installed on the car. Both the Cadillac ELR and the Tesla Roadster Model S have comparable prices, engine sizes, options, and features...
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...FRANK T. ROTHAERMEL DAVID R. KING Tesla Motors, Inc. January 1, 2015. Elon Musk, chief executive officer (CEO) of Tesla is taking it easy on this New Year’s Day. While having his coffee, he scrolls through some recent issues of The Wall Street Journal on his iPad. A headline from one current story jumps out at him, “Gasoline prices have declined for 88 consecutive days, the longest streak of falling prices on record.”1 The slide in gas prices, which began in September 2014, also happened to coincide with the slide in Tesla Motors (TSLA) stock. With increasing oil, and therefore gas, prices, people had an incentive for purchasing electric cars. Now with gas prices drop- ping, the incentive to buy would start to become less of one, and the demand for the product would probably drop. This was one of the challenges facing Musk on this New Year’s Day. In addition to hav- ing to contend with lower selling costs due to rising production, Tesla was also confronting increasing competition and economic headwinds that were likely going to lower the demand for electric cars. Musk is a serial entrepreneur longing to leave a legacy, and he believes that Tesla just might be the company that will help him leave his mark. He has a large profile already and has been described as “Henry Ford and Robert Oppenheimer in one person,” as well as “Tony Stark, the eccentric inventor better known as Iron Man.”2, 3 (In fact, Musk made a cameo appearance in Iron Man 2.) But, with sev- eral pressing...
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...The subsidiary of Telsa Motors in China was registered in the year 2006, but full operations began in 2013 when the trademark issue for Telsa Motors was resolved. Organizations must learn that their trademark is an international recognized concept but in some overseas market there can be problems with the mark of a Corporation. The best way to overcome these matters can be through franchises with existing domestic Corporations. Telsa Motors, Inc. is an American multinational Company that manufactures designs and sells electric vehicles, components of power train and battery products. Telsa is a publicly traded Company that sells its stock on the NASDAQ stock exchange market under the symbol TSLA. Marc Tarpenning and Martin Eberhard started Tesla Motors way back in 2003 (Hettich and Stewens 3). Business has been average for Telsa Motors, Inc and it is only on 2013 when Telsa Motors posted their first profits since the year 2003. An analysis of Telsa Motors reveals that they have ventured into the Chinese market where it is expected that they face several challenges and influences from the business environment. Telsa Motors trades its shares on the NASDAQ stock exchange...
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...may be subject to copyright under the Act. Any further reproduction or communication of this material by you may be the subject of copyright protection under the Act. Do not remove this notice. For more information please contact copyright@cqu.edu.au CASE 6 Tesla Motors and the U.S. Auto Industry (Case B) Michael Janovec Georgia Institute ofTechnology Frank T. Rothaermel Georgia Institute ofTechnology LON MUSK, CEO of Tesla Motors, sped past the security guard in his brand new Tesla Roadster without waving . Despite his reputation as a brash leader, Mr. Musk normally took the time t0 exchange pleasam tries in the morning . Today, however, Mr. Musk's mind was traveling a mile a minute. The company had just filed its first annual 10-K with the U.S. Securities and Exchange Commission (SEC), and Musk had an important meeting with Tesla's board of directors at the end of the week to discuss the company's future. As Mr. Musk walked into his office, a photo caught his eye. It was a picture of him ringing the opening bell at the NASDAQ on June 29, 2010, the day that Tesla went public. As he looked at the picture, he thought about how that day had changed his life and the life of his fledgling company. Tesla had gained a much-needed capital injection, but along with the financial boost also came increased scrutiny from the board of directors. Now instead of answering only to himself, Musk faced questions from the board about how he planned to reverse a troubling...
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...Tesla Motors 3500 Deer Creek Palo Alto, CA 94304 650-681-5000 650-681-5101 I. I. Background and Introduction The focus of this analysis is on Tesla Motors and the electric vehicles they design, develop, and manufacture. Tesla Motors was incorporated in 2003 and using technology developed at the headquarters in California the company introduced the Tesla Roadster in 2008 (Tesla Motors, 2010b). On June 28, 2010 the company filed an initial public offering that was accepted by the SEC. They have also become business partners with Toyota Motor Corporation to develop an electronic version of the Toyota RAV4 to be sold in 2012 (Tesla Motors, 2010b). The importance of this analysis is two-fold. First, if a company can successfully develop a fully electric vehicle that is affordable and has mass market appeal it would mark a realistic solution to the diminishing worldwide oil supplies. Second, the technology that would be developed could be used as a springboard for the entire automotive industry. As with any business that is being hinged on new technology, there are significant risks and issues that could potentially be detrimental to the company. Being a new company, there is a very limited operating history for potential investors to go by (Tesla Motors, 2010b). Therefore, future earnings cannot be predicted based on past earnings. The company is losing money and in the SEC filing for the last quarter they state that they expect to keep losing money for...
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...MAR 675: STRATEGIC MARKETING PLANNING CASE STUDY: TESLA MOTORS 2/16/2015 1. Introduction * Background and summary Tesla Motors (TSLA) is an automobile company founded in 2003 in San Carlos, California. It mainly produces electric vehicles and electronic vehicle power train components. Tesla’s first product is the Roadster, which is the first fully electric sport car, and gained much widespread attention. Then it delivered a five-seat vehicles Model S in 2012 and seven-seat Model X and 3 in 2014, which all sell well in the United States and worldwide. Tesla is worth more than 25 billion in 2014. Tesla has the direct automobile manufacturer competitors including Ford Motor Company, General Motor, Honda Motor and etc. Also, it has the other pressure coming from the traditional gas propulsion manufacturers. * PESTEL Analysis P (Political Factors): The environment protection laws in the United State have heavy influence on the car industry. Since electric cars save a significant portion of the energy and make less pollution to the environment, especially pure electric cars like Tesla’s, they are kindly accepted and supported by the government. E (Economic Factors): In the awake of the 2008 financial crisis, the consumption of vehicles in the United States increases with the GDP increases. However, because the gas price is decreasing in recent years (See the chart below), traditional gas-based cars take an advantage in the vehicle industry. Also, because Tesla’s...
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