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Internal Strategy

Business strategy

  • Top-down:
  • Biggest production of Li-ion Battery
  • Li-ion Battery:-30% of the price

Tesla roadster ($89 000)

Tesla Model S ($76 500)

Tesla Model X ($83 000)

Tesla Model 3 ($35 000)

  • 35 Gwh => 35 billion watts-hour
  • Recover R&D
  • Innovation:
  • 500 000 cars

Supercharger

Innovation

Our mission and vision

  • Vehicle

Gigafactory

  • Battery

Create the most compelling car company of the XXI century by driving the world's transition to electric vehicles.

  • Infrastructure
  • Value configuration

Order qualifier and order winner

You can drive for free your entire life!

It has a trunk!

Product

Byproduct

To accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible

Lithium Cobalt Oxide

Constant updates, ever improving your cars!

Recycling

  • Dust
  • Water vapor
  • Carbon Dioxide

Autonomous driving!

  • Reducing inventory => Long waiting line (several months)

It can bring you to your destination!

Environmental friendly status

Production

  • Low level of customization compare with our competitors

Lithium-ion Battery

Our reverse Logistic system:

Closed loop recycling system

ATO, Lean philosophy

Because our eco-system keeps profits in house, we are able to reach our mission and vision.

Internal Production process

How sustainable is our supply chain and our final products and services?

  • Vertically integrating => Lower price
  • Li-ion battery, loop recycling process, lean philosophy, Gigafactory => no CO2 emission
  • Tackling barriers for customers and car manufacturers
  • Vision and mission => investing in 4 sectors

Conclusion

  • Conclusion
  • External Supply Chain Processes
  • Internal Production Process
  • Internal Strategy

(+) Strategic flexibility

(-) Supply chain distribution

Summary

(+) Focus on core competencies

(-) Less control over

processes

  • Car battery pack
  • Electric motor
  • On board charger

Core competencies:

(+)Lower Investment risk

=> Trade-off

What component do we actually produce?

2) Corporate social responsibility

1) Cost consideration

Which would be more suitable for us?

Outsourcing vs. In-house

(+) Flexibility

(-) Huge investment

(+) Economies of scale and scope

(-) Strategic flexibility

(+) Degree of control

2) R&D Alliance

1) Supplier Alliance

3) OEM alliance with other car manufacturers

Strategic alliances

Brembo

Panasonic

External Supply chain Processes

Sourcing

C. Helman, (2013). How Much Do Your Gadgets Really use? Forbes Energy website: http://www.forbes.com/sites/christopherhelman/2013/09/07/how-much-energy-does-your-iphone-and-other-devices-use-and-what-to-do-about-it/#360e0b94228e

K. Kelly, (2011). Tesla’s Closed Loop Battery Recycling Program, Tesla website: https://www.teslamotors.com/blog/teslas-closed-loop-battery-recycling-program

D. Lavring, (2013). Peek Inside Tesla’s Robotic Factory, Wired website: http://www.wired.com/2013/07/tesla-plant-video/

E. Musk, (2013). The mission of Tesla, Tesla website: https://www.teslamotors.com/blog/mission-tesla

A.M. Scott, (2015). Tesla Motors Inc. Ranks 431 On Top Green Rankings 2015, Business Finance News.

R. Tao, (2014). Tesla Created a Custom-Built Supply Chain That Competes With The Best, Tradegecko online blog: https://www.tradegecko.com/blog/tesla-custom-built-supply-chain

Keeping inventory low:

  • Long lead time
  • Customization level
  • Lower risk
  • Increase growth in other department

How do we interact with our final customers?

After sales service:

  • Warranty
  • Buy back guarantee
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