ACTIVITY RATIOS
- Inventory Turnover
- Asset Turnover
SWOT ANALYSIS
VRIO ANALYSIS
STRENGTH:
- Continuous innovation of technology
- Brand Recognition
- Unique position in the market
WEAKNESS:
- High Prices
- Lack of charging stations
- Limited number of suppliers for battery
VALUE: ability to solve humanitarian problem
RARITY: one of few brands that have introduced a fully electric car, technological advancements, does not utilize outside dealerships
IMITATE: Difficult. Takes time and money
Organizations: Fluctuates
OPPORTUNITIES
- Expanding charging networks
- Expanding markets
- New Automotive technology
THREAT:
- Competition
- gas prices dropping low
External Analysis
EXTERNAL ANALYSIS
Environmental and Legal Factors
- Some states ban car sales directly from manufacturer to consumer
SOCIAL AND TECHNOLOGICAL FACTORS
- Climate Change
- Expanding environmental programs
- Rising standards on waste disposal
Power of Buyer and Supplier
- High rate of technology changes
- Increase automation in business
POWER OF BUYER
LOW
- Increase in popularity of a lifestyle that reduces carbon intake
- Increase preference for renewable energy opportunity
- Luxury/ Economic vehicles
THREAT OF NEW ENTRANTS/ SUBSTITUTES
- Not much comparable technology
- Moderate substitutes available
POWER OF SUPPLIER
MODERATE
Political and Economical Factors
- Moderate size of suppliers
- Moderate supply
THREAT OF NEW ENTRANTS
LOW
FINANCIAL ANALYSIS
- High cost of brand development
- High cost of doing business
- High economies of scale
THREAT OF SUBSTITUTES
MODERATE
COMPETITIVE RIVALRY
- Economic stability issues
- Decrease renewable energy cost
- Low interest rates and readily available credit
- Flunctuating fuel prices causing high demand for fuel efficient vehicles
- Moderate substitute availability
- Moderate performance of substitutes
- Hybrids
- Fuel efficient vehicles
- Mass transportation
POLITICAL
- Government Incentives
- Political Stability of major markets
- Free Trade
- operates in a highly competitive market
- small amount of firms
- high aggressiveness of firms
FINANCIAL STANDINGS AS OF 2013
LIQUIDITY RATIOS
PROFITABILITY RATIOS
- Current Ratio
- Acid Test Ratio
- Accounts receivable turnover
- Profit Margin Ratio
- Return on Stockholders Equity
- Earnings Per Share
INTERNAL ANALYSIS
RESOURCES
CORE COMPETENCIES
Human capital
Financial Resources
Equipment
Supplies
Production plant
Charging stations
- Powertrain and vehicle engineering
- design of complete battery back system
- computer aided design and crash stimulations
BUSINESS/ CORPORATE LEVEL STRATEGIES
BUSINESS LEVEL STRATEGY
CORPORATE LEVEL STRATEGY
Environmentally mindful consumers who are willing to pay a top price for a vehical
- Do more in the niche segment of battery driven cars and leave a legacy in the industry
- become more environmental in the production and promotion
- Increase production capabilities
- Deal with Toyota, Daimler and Panasonic to help provide basic parts for increasing battery power cars
IMPLEMENTATION
- Improve the facilities to make production easier and cheaper
- continue to innovate
- Conquer self-driving cars by 2020
- Finish "Gigafactory"
- Increase range in between charges
INTERNATIONAL-LEVEL STRATEGY
- Transnational: US, Asia, Australia, Europe, and Canada
- Gas prices are more expensive in some of these countries
- Headquarters in Palo Alto, California
- Global markets will pay the expensive price for an environmental friendly car
ANALYZE THE FIRMS PERFORMANCE
FINANCIAL AND MARKET BASED MEASURE
PERFORMANCE TRENDS
- Tesla's revenue continue to increase exponentially while net less doubles
- Stock performance sky rocketed since initial introduction
- Shows no solid history of profits but operating margin continues to increase
COMPARISON TO COMPETITORS
- Persistently worse than other competitors in market
- Growth Stage, negative operating margin
- Industry ranks them below Ford and General Motors
- Fluctuating negative financial statistics with inconsistant sales
- Hopes to smooth out production costs through in house R&D
- Introduction of newer cheaper models over years due to decreased production costs
PERSPECTIVE OF STAKEHOLDERS
SUSTAINABLE COMPETITIVE ADVANTAGE?
- Tesla relies on stakeholders to be satisfied
- Will sell stock if return on investments aren't what they need to be
- Satisfied stakeholders will reveal information that could lead to increase value and lower cost
- In growth stage; should continue to support efforts due to its unique market differentiation
- First fully electric luxury vehicle
- Technology and software are far more advanced
- "Supercharger"; one of a kind
- Government regulations and threath of new entrants may hinder competitive advantage sustainability
TESLA MOTORS
Background
- Founded in 2003- San Carlos California
- Named after Nikola Tesla
- 31 On-going locations
- CEO- Elon Musk
- 2000+ Employees
KEY PRODUCT
VISION STATEMENT
MISSION STATEMENT
"To accelerate the worlds transition to sustainable transport"
"to create the most compelling car company of the 21st century by driving the worlds transit to electric vehicles."
TESLA CASE ANALYSIS
Doug Myers, Tyler Wall, Catherine Dillavou, Ashley Drazdowski, Nick Hylton.
Based on Jim Harvey's speech structures