Porter's Five Forces Analysis Of Tesla

The company is in the process of producing other high performing electric vehicles that can be used b both city and non-city dwellers at a price of $ 30, 000 to make it available to young professional who makes the largest percentage of the American population. Moreover, the new car model will be unisex, comfortable for eco-friendly consumers, tech savvy as well as entry-level luxury cars. Given that youths are known to like classic objects and things to show them off to their friends as well as in their social media, the company needs to produce a car that will fully and successfully serve their needs. However, the new car model will not be based on any race or ethnic group, and the company is looking for a car model that will serve the needs of the general population as a whole. In conclusion, it is correct to say that with the above marketing strategy, Tesla Motor Company is destined for greatness and in the near future, it will win the hearts of most customers in the motor vehicle market.

Company background Tesla Motors Company was established by Martin Eberhard and Marc Tarpenning in California 's Silicon Valley area in 2003. It is a company specialize in automotive and energy Storage technology that involves designs, manufactures, and sells luxury electric cars, electric vehicle powertrain components and battery products. The company believes that electric cars could be better than gasoline-powered cars and it will be the future trend of car market. Tesla committed to developing diversity model to suit different type of user requirement and each new generation of the car would be increasingly affordable.

Tesla Motors Inc. is an American company that designs, manufactures and sells electric cars and electric vehicle powertrain components . The company also markets lithium-ion battery packs to automakers including Daimler and Toyota. Its CEO, Elon Musk, has declared he envisions Tesla as an independent automaker, aimed at eventually offering electric cars at prices affordable to the average consumer. Tesla Motors first gained widespread attention following the production of the Tesla Roadster, the first fully electric sports car. The company’s second vehicle is the Model S, a fully electric luxury sedan, and its next two vehicles are the Model X and Model 3 respectively.

Being that Tesla is a moderately new organization, regardless they have yet to outline an assortment of diverse trims. On the other hand, they have made an elite roadster called the Tesla Roadster. This electric vehicle is a much estimated model that keeps running about $100,000 (Dickerman & Harrison, 2010). The thoughts behind Tesla's models are to make a superior auto without giving up effectiveness, which has not been finished by whatever other car maker. Their system is to enter the top of the line market, where clients will be obtaining this vehicle at a premium value, then to drive down the business sector as fast as they can to lower costs and have more units accessible to be created, as they discharge more current models (Wirasingha, Schofield, & Emadi, 2008).

Whether you want a car that can fit a large amount of people, or a sports car that can go extremely fast, an electric car will almost always be the best option for you. First of all, let’s talk about the environment. I’m sure you all know about greenhouse gases and global warming, so I won’t talk much about that, but you may not know that road vehicles produce 10% of all man-made greenhouse gas emissions. This does include vehicles other than cars like trucks, but Tesla just came out with an electric truck which is faster and can carry more weight than any petrol/diesel truck. Greenhouses gases carbon-dioxide and methane have hit their highest levels in the past 420,000 years, and the extent of arctic sea ice has declined about 10% in the last 30 years.

B) Case study: TESLA the small giant: With its original positioning statement “ To accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible” Tesla has carved up the electric car industry whilst becoming its pioneer. Despite being a small player with growing shares in the entire automobile industry, American automaker TESLA Motors has positioned itself as a dominant leader and a giant in the electric car market by manufacturing the best battery powered cars yet to date. It is its vision and its mission that has carved its place into this sector of the automobile industry. Its competitive position is an all based differentiation that reaches far beyond manufacturing

(panmore.com, Tesla Motors, Inc. PESTEL/PESTLE Analysis & Recommendations) Electric vehicles face two main technological challenges, high costs and suboptimal batteries, this is where Tesla has taken the lead on its competitors, their batteries are cheaper, charge faster and have a better range than those of the competition (200+ miles, up to a maximum of 300 miles), the infrastructure for charging these vehicles is also rapidly developing. (technologyreview.com, How Tesla Is Driving Electric Car Innovation) The major innovation that is coming is fully autonomous vehicles, Tesla, Inc. has stated that all their vehicles are fully equipped with the software required and that total autonomy will start to

Companies like Nissan and Toyota make cheaper alternatives then high tech Tecla’s everyone raves about. Electric vehicles may cost more to purchase initially, but the savings will be realized over the lifetime of the

These batteries afford Tesla Model S achieve the volume of energy reserve for more than 480km. Despite the fact that Tesla Motors manufactures and sells its own electric cars, it acts as simple equipment manufacturer by the production of electric powertrain components, which other companies can buy and trade with their own brand names. For motivating the growth, Tesla Motors worked out three main strategic partnership types: • Equipment manufacturer partnership with other car makers • Supplier partnership • R&D partnership. To cover the growth task Tesla Motors used the external collaboration for enhancing the Tesla innovation and set up partnerships with many firms. The members of its supplier union were Lotus Cars and Panasonic.

It will produce 101 miles per gallon highway miles and in the city will do 126 miles per gallon. Has a 107 horsepower, and their battery is 24 to 30 kWh 360 V lithium ion. Five people can seat very comfortable, well equipped. Advantages and disadvantages of hybrids The hybrids vehicles are ecosystem friendly which they will increase their popularity, we will have many benefits us owners especially for the environment. With the price of the gasoline going sky high people are looking for other alternatives and some of advantages are as follows: 1.