Tesla Motors

These cars are primarily sold In the united States, however they are becoming Increasingly popular in the united Kingdom, Ireland, Japan, Hong Kong and Singapore.

Currently, Tease has two models available for purchase, the Roadster and Model S. A third model, Model X, will be available at beginning of 2014.

We Will Write a Custom Case Study Specifically
For You For Only $13.90/page!

order now

Model S car owners are provided with Supercharger Stations, allowing them to charge their car thus making long distance rives possible. This service Is only offered In the United States, and are In the process of building Supercharger Stations internationally by the end of 2013. Martin Bernhard and Marc Tarpapering founded Tease Motors in San Carols, California on July 2003. However in 2004, Leon Enjoined the team as Chairman of the Board of Directors by investing In the company.

Musk, still holds Its CEO in addition to a product architect position, becoming the company’s most valuable human capital and visionary.

On June 29, 2010 Tease Motors was part of NASDAQ under the symbol TATS and has been the first American car company to go public nice Ford Motors In 1956. Tease Motor’s main competitors feature BMW, Mercedes, Audit, and Lexus. Although it has been able to stay competitive, Tease preparing to give new depths to the company by rolling out a new affordable car line in 20172018.

However, they will face the inevitable challenge of designing and uncompromising a budget electric car without brand dilution.

Industry Analysis The automotive industry covers a wide range of companies and organizations Involved In the design, development, manufacture, marketing, and selling of motor vehicles. It Is one of the world’s most Important economic sectors by revenue. Tease Motors falls under the EVE niche industry, within the automobile manufacturing industry. An EVE is an automobile that is propelled by one electric motor or more, using electrical energy stored in batteries or another energy storage device.

As concerns about the environment rise and the costs of fossil fuels Increase, the auto industry, specially the EVE industry has taken upon the opportunity to provide alternative solutions to the conventional gas and diesel vehicles.

Leading to changes in design to provide cleaner and more energy efficient vehicles. Much of the focus is on electric vehicles (Eves), such as hybrid cars. Hybrids partially run on electric power and currently increasing in popularity among drivers. Yet, attention is now being shifted to plugging cars, which has reduced the need for fuel.

Five Forces: Electric Car Industry 1 -Bargaining Power of Suppliers: HIGH The bargaining power of suppliers is high based on the fact that the components sourced globally, and over 150 suppliers. Panasonic provides Tease with batteries, and Lotus Cars Limited with Teasel’s Roadster chassis and engineering.

2. Bargaining Power of Customers: LOW The bargaining power of customers is low in the industry of Eves due to the scarce mount of comparable products. Under the electric car niche industry, Tease holds the only luxury electric car line of products, making it difficult for customers to compare prices and bargain for lower prices.

Moreover, 2 Team 2 69002 the Ionians Leaf, Toyota Pries, and Ford Volt’s prices all range between $21,000 to $30,000. All with similar features and packages, giving little room for customers to cross compare and negotiate.

3. Threat of New Entrants: MODERATE Throughout the decades, there have been many automobile companies that have created their own versions of electrically icicles, however very few have been able to become profitable, like Tease. “Larger, established companies that want some of what Tease has…

Respond by saying they’ll be part of this exciting new market” (The Daily Beast).

However, developing EVE technology is costly and requires much time and investment in the R department. Additionally, Tease is the only brand that holds a “dependable electricity car” label in the industry with a strong and loyal following of customers. That customer loyalty could effectively prevent new entrants from achieving equal success in the EVE industry. .

Threat of Substitutes: HIGH Although there are only a few automotive makers in the market, electric car price points are significantly higher to those that of its substitutes, bullheaded cars.

Therefore, this makes the threat of substitutes exceptionally high. On a broader scope, the transportation industry is vast and encompasses not only mainstream cars, but also public transportation vehicles such as buses and trains. Yet, Tease Motors is the only automotive maker that focuses solely on electric powered vehicles, whereas other companies also have standard saloonkeeper vehicles. The electric vehicles’ price range varies between $25,000 $ 100,000 so there are various price points for consumers to select an electric car. .

Competitive Rivalry within the Industry: MODERATING Although one can argue that the electric car industry itself has not been the most lucrative industry, the government’s involvement and Tease Motors’ success has sparked competitive rivalry. “Teasel’s biggest windfall has been the cash payments it extracts from rival car makers (and their customers), via its sale of ceremonious credits. A number of states including California require that traditional car makers each certain production quotas of ceremonious vehicles” (WAS).

Even the automotive makers that do not produce electric vehicles are being impacted by the development of the electric car industry. Therefore, automotive makers are seeking to penetrate Teasel’s success in the EVE industry; “established luxury brands also are planning to challenge Tease with plugging models of their own, such as the BMW hybrid coming from GM. ” With the pressure Tease Motors has created, and with the government requirements, automotive makers will see a steady increase in the competition.

Profit Potential (Attractiveness) of the Industry

The EVE industry provides profit potential for automotive makers who are in or have yet to enter the electric car market. Suppliers have a significant part in the industry as the components within the vehicles are specialized. Buyers, however, do not have as significant power due to the various alternatives to Just using electioneered vehicles for transportation. Furthermore, the models currently produced have various price points, which makes the amount of substitutes high. This ultimately ties in with competition, which is a necessary component for an industry to thrive.

The increasing popularity of electric cars, the government’s germinations laws, and the increase of need for environmentalism’s products, foster an industry with large profit potential. 3 Team Internal Environment Analysis First, we need to know an internal environmental analysis of Tease Motors. The internal environmental analysis of Tease Motors is value chain analysis, resources, capabilities, competitive advantage, and SOOT analysis. For Tease Motors, the value chain analysis includes supplier, operation, marketing and sales. Resources include culture of innovation and no paid advertising ; capabilities include effective product racketing and design skills used to make quality products; SOOT includes strengths, weakness, opportunities and threats.

Resources: Tease Motor’s culture of innovation is one of the most valuable resources. Furthermore, the CEO, Leon Musk, is perhaps their most important human resource. Providing with a vision of innovation for Tease. Additionally, Tease also produces electric perpetration components, including lithium battery packs, that they sell to other automakers like Daimler and Toyota.

Another resource of Tease are the various patents for EVE Components, inclusive of a new attended battery system, that they can license patents to other automakers. Capabilities: Product marketing is one of Tease Motors most valuable capabilities.

They have no paid advertising, instead they simply place their product in showroom and their products sell by themselves. People fall in love with them once they see them up close. Additionally, they have a small but diverse line of cars, providing enough variety for their customers. The second capability for Tease Motors is design skills used to make quality products.

Tease Roadster is the first production automobile to use lithium battery cells and he first production EVE with a range greater than 200 miles (320 km) per charge.

These design skill is great than other automakers, such as Toyota Pries. So, to compare to other automakers, Teasel’s electric cars can drive further based on the design skills. Competitive Advantage:Tease Motor’s competitive advantage lays on their lower cost for battery, innovation, cutting edge technology, and greener of vehicles. Tease uses batteries, the cost of batteries is lower than its rival batteries cost ( 25-50% of what rival batteries cost).

Another competitive advantage is their innovation and manufacturing efficiency. Located in the Silicon Valley, Tease is centered in a hub of fast paced innovation and hot spot for engineering talents.

Strategic Solution Tease Motors’ CEO, Leon Musk, recently communicated that they are now striving to make the first affordable, mass produced, and popular electric car in history. However, how will the luxury electric car brand succeed to make affordable cars without brand dilution? They must create an affordable car that plays to Tease Motor’s capabilities, core competencies, and resources.

Knowing that the electric car industry s one of low new entrants and low competitive rivalry, Tease Motors has a greater chance to create an affordable car a profitable business strategy. The affordable car should be one that continuous with the signature Tease luxury, finesse, and sleek design. However would most likely compromise the size capacity in order to Justify the affordable price tag. In addition, the company should continue to strive in their technology development of lower cost batteries 4 Team with higher mileage capacity and faster charging time.

Lastly, play their cutting edge technology competitive advantage to their favor.

For example, aligning the rolling out of the affordable car with that of their authorized functions as an Dona to the new budget car can give Tease an incomparable advantage over the mainstream combustion cars. Simultaneously, Tease would be required to assess one the major customer concerns, the lack of charging stations. As a supplement product to the mass produced budget cars, Tease Motors would need to build a substantial number of public charging stations in varied locations across the country so as to facilitate the customers need for accesses charging stations.