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Outline
Mission
Tesla Motors designs and sells high performance,
super efficient electric cars, styles and acceleration
Vision
The best automotive
Technology
Performance
Efficiency
design
The 1st fully electric vehicle in the world.
Where is the birth place of Tesla?
Who created Tesla?
Leadership & Structure
Unique technology and sale volume
Competency of Tesla
Core competencies:
3. Motor design
Core competencies:
1. Battery technology
Core competencies:
2. Power electronic
Goals
Create affordable mass market electric vehicles
1. Selling their own vehicles
2. Selling patented electric power train
3. Serving as a catalyst and positive example to other automakers
P: Government support of green environmental project product
E: Growth rate of markets and value of markets
S: Leading environmental culture
T: Dynamics of technology innovation
E: The tendency of companies and individuals towards litigation
L: Geographic distribution of possible markets and suppliers
Model S occupied 8.4% market share in American automobile industry, 2013
Norwegian Market
The hottest cars in Norway ,2013
Cash cow: American and Norwegian market
American Market
Indian and Japanese market
Indian market
Might difficult to accept by consumers
Low per-capita income and living standard
Japanese market
High barrier to into this market
Well established vehicle industry
Already mastered and produced electric cars.
Chinese market ·
External
Porter 5 forces
Higher investment intensity will result in a lower return on investment (ROI) and cash flow
Tesla got a huge investment to R&D and manufactures in prophase (Lower return)
Should reduce the investment intensity effect on profit
E.g. Improve utilization rate of equipments, rent equipments to manufacture to avoid purchase fees
Bargaining power of suppliers
Select the most professional supplier
Best quality products
Bargaining power of buyers
Unique high-end electric cars
No similar products
Threat of substitute products
Traditional high-end brand car
Improve product quality
Threat of new entrants
High-end consumers change
Low-end market opportunity
Intensity of the competitive rivalry
Enter different markets
Different products
Enhance the competitiveness of products
Thank you !
Company current situation
Tesla co-operates with both international and domestic stakeholders
Its main stakeholders are supplier of battery research and development
It is through the cooperation of suppliers and developed to meet the needs of the market for electric cars
1. Substantive growth strategies
Joint ventures or M&A (mergers and acquisitions) with other vehicle companies
2. Limited growth strategies
Growing too fast brings financial problem and challenges
3.Retrenchment
It is a remedial measure
Lee, Jason, Jay, Sean
Implement Roles and responsibilities
Needle, D. (2010). Business in Context: An introduction to business and its environment. 5th Edition. South-Western: UK.
Wetherly, P. & Otter, D. (2011). The Business Environment: Themes and Issues. 2nd Edition. Oxford University Press: Oxford.
Boddy, D. (2011). Management: An Introduction. 5th Edition. Pearson: Harlow.
Irene, C. (1997). Business strategy: an Asia-Pacific focus. Singapore; London; Prentice hall
Robin, J. (1997). Global Business strategy. London: International Thomson Business Press
David, C. et al. (2002). Business strategy: An introduction. 2nd Edition. Routledge
Niall, K. (2014). The business book. Dorling Kindersley
Pauline T. (2012). Elon Musk: Biography of the Mastermind behind Paypal, SpaceX, and Tesla motors. Hyperink Enterpreneur Bios
Jim, M. (2013) As It Increases Production, Tesla Worries About Battery Supply. Available from: http://wheels.blogs.nytimes.com/2013/09/06/as-it-increases-production-tesla-worries-about-battery-supply/?_php=true&_type=blogs&_php=true&_type=blogs&_php=true&_type=blogs&_r=2[Accessed on 7th, Mar, 2014]
Linette, L. and Business Insider (2013). February 1st Toronto Tesla Fire. Business Insider. Available from:http://www.businessinsider.com/february-1st-toronto-tesla-fire-2014-2[Accessed on 26th, Feb, 2014]
Bernie, W. and Norihiko, S. (2013). Tesla Model S charging system may have started garage fire - California fire dept. Reuters. Available from: http://www.reuters.com/article/2013/12/18/us-autos-tesla-fire-idUSBRE9BH1J020131218[Accessed on 26th, Feb, 2014]
Joachim, D. (2013). Tesla’s Model S overtakes VW Golf as Norway’s best-selling car. Reuters. Available from: http://www.reuters.com/article/2013/10/08/tesla-norway-idUSL6N0HX1CH20131008 [Accessed on 1st, Mar, 2014]
Organic growth
Cost:30$ million (apply for government, transfer income from cash cow)
Allocation of funds:
Use 10$ million to construct charging stations around UE centers by August, 2014
Use 10$ million to build and operate at least 25 UE centers by August, 2014
Use 5$ million to publicity and advertising in first and second tier cities during 2014
Use 3$ million to maintain daily expenses and salary in 2014
Use 1$ million to recruit and manage employees within 3 months
Use 1$ million to establish service system by August, 2014
Revenue: 40% Asia EV sales in 2015 (100$ million)
Merger and acquisition local carmaker (BYD Ltd)
Cost: 2$ billion (ask for shareholders, apply for loan from local bank)
M&A BYD Ltd.
Staff training
Existing equipments upgrading to EV model
Revenue:
Help Tesla to complete market development and productivity improvement
Make a first mover advantage and help Tesla to occupy 80% Chinese EV market share
More than 500$ million per year.
Risk:
Capital recovery issues
Loan crisis
Revealed technology by BYD