Tesla offers innovative new technology to manufacture electric vehicles. While Tesla is not the only car manufacturer of electric vehicles, but it has hit the luxury remotely create and dominate the electric vehicle market. The market is clear from inexpensive electric cars, as well as the market for luxury gas-power vehicles. Moreover, Tesla has a strongly sales growth. Tesla has been rapidly increasing in the past few years, mainly due to public interest in its vehicles.
(Chandler, 2013) Customers have greater access to products so they can choose between, for example, a cheap more polluting car and a more expensive non-polluting car. Also, there is more competition so Tesla needs to distinguish itself from other companies by focusing on CSR. An emerging force that may reshape CSR in the future might be climate change. In order to diminish climate change as much as possible, corporate social responisibility is very important. Companies should think about less polluting products and production processes for
There are other auto manufacturers that sell electric vehicles, but Tesla is the leader in this industry for luxury, long range electric vehicles. Tesla is known for their high rate of innovation and they were also the first company to create a fully electric sports car. Their high rate of innovation is a strength that helps them create competitive and profitable products to their consumers. Tesla has a strong brand image that symbolizes their innovation and renewable energy solutions. With their strong brand image, Tesla can attract and retain customers.
“Toyotas wariness highlights the uncertainties it faces some of its biggest markets and the fact that much of its profit rise is being driven by the weak yen.” (Document E). This further proves that Toyota should focus more of their factories and sales in North America so they will be more profitable. The most prominent threat that Toyota is facing currently is their competition.“Google Inc. is testing driverless vehicles and Toyotas Japanese rival Nissan Motor Co. is especially confident about the technology with plans to start selling such vehicles by 2020.” (Document A). Toyota does not have an ensured solution but it is clear that Toyota should continue to put money into research and development of technology because their competition is also planning to take advantage of the growing
Tesla Coupled with Giga-Factory, it’s mass market car Model 3 intends to do just that to provide a mass-market car and maintain cost leadership through economies of scale. Introduction of Lithium-ion Cells Giga-Factory Tesla is gradually shifting its strategy from being a niche player to mass player following blue ocean strategy. After creating a unique product in Tesla cars, it is focusing on reducing the costs of manufacturing thereby reducing the prices of its products and makes the cars more mass market. Another reason is that to recover its large fixed costs investment in supercharger stations, it needs to boost sales but sales have not been able to meet the demand because of slow production of Li-ion cells. Tesla plans to launch a Giga-Factory by the end of 2017 to minimize the crunch of supply -demand gap of Li-ion cells.
The main problem that the Mercedes - Benz would have faced if they had remained a niche player selling 'world cars' to the luxury market worldwide , would be the stiff threat of competitions from the Japanese automobile industry as they produced luxury cars of good quality at cheaper rates with added features. Another problem would be the decline automobile sector. They won't be able to earn more profits if they are marketing their products in only one segment. Question 2 What were the key approaches to Fords model of Globalization and Internationalization? The key Characteristics of Fords approach to Globalization • Introduced Assembly line leading to mass production which resulted in low cost production , high volume and rapidly expanded its markets • Set up Sales branch in France , further expanding its market to European countries.
It is important to note at this vehicle also compatible with high-end customer and Tesla’s reformist distribution channel such as recharging station navigation. On the other side, the battery, an important part of the electric car, is the most module of the car. As an ambitious choice, Tesla enters the stationary battery market and provides an innovative battery pack technology (Perez ve Chen 2015). The last service of Tesla Motors is high performance supercharger station network which diminishes range anxiety. As a strategy Tesla establishes this network for free to users.
With the continued advancement in the car technology, the urge to provide efficient, cheap and safer cars cannot be avoided. Currently people live in a very competitive and growing technology thus they are doing whatever they can to ensure they cop up with this advancing technology. The difficulty of the social implication of car technology is multiplied by complete lack of stability in this field. Over the years, there has been a huge advancement in car technology, from the days when people used diesel operated engines to today when we have hybrid cars fitted with two engines that uses gasoline and another which is electric. This growth has impacted the society in various ways.
Analysis: Tesla has proven to make an extensive impact in the market. Keeping the company’s position in the high-end industry, Tesla is able to represent just like companies like Apple a high-end product that appeals only to a certain customer base. Tesla is constantly innovating their product in a way that the newest technologies will be incorporated in the production process of the car and the products the companies develop itself too. Tesla is the first major company to have inherited an electric car only automobile production company, which is nearly impossible considering the weak demand for electric cars today. Most car manufacturers today only devote a small part of their product line to electric cars, meaning that they do not want to take the risks of completely changing to electric only cars as fears of reducing the demand for their products is real and because there is still more demand for conventional petrol driven cars.
BMW in the past used differentiation strategy to build their car empire, but nowadays they are approaching low cost strategy; in contrast, Toyota used both strategies to establish a strong reputation in automotive industry. This results in impressive value to quality in the favor of Toyota. BMW is known for their high quality cars that cost them a lot to develop, but their cost is much higher than their competitors comparing to Toyota. In addition, Toyota strategy is to develop the best quality possible with the lowest cost to charge customers lower price than its rivals. According to