2. INTRODUCTION
Tesla motors was found by Martin Eberhard and Marc tarpenning in the
year 2003.
Roadster was the first electric car launched by the company, which was a
huge success.
Tesla Motors joined hands with Daimler and Toyota to provide support
for power train components for their hybrid cars.
Now the company had a net worth of $25 billion.
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Strong R & D team, Better Technology Skilled workforce.
Slow sales rate, Higher price without subsidies.
Increasing demand of hybrid cars, governments promoting hybrid cars by
giving subsidies.
Brand awareness, high level of competition with rivals, expensive battery.
4. Porters Five Force Analysis
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Rivalry among
Competitors
Current competitor
is Mahindra E20
and many
companies are
planning to enter
into Indian market
like Nissan, Toyota
Bargaining Power of Suppliers
Most manufactures set their own plant in India
due to cheap labour and abundant raw materials.
Imported parts cost more.
Threat of New Entrants
Toyota, Hyundai, Nissan and Chevrolet are
coming with their hybrid models to Indian market.
Bargaining Power of Buyers
Hybrid cars are much costly than fuelled cars.
Indian citizens are price sensitive and mileage
concerned.
Threat of Substitutes
Price without government subsidies will be a
major concern for Tesla. Many manufactures are
coming with improved technology.
5. Resources and Capabilities
1:Tangible Resources
Financial: Tesla over a short period of time has managed to enter several
countries like Australia, Canada, New Zealand , etc. Has many investors
like Google, Daimler etc. US government is also funding and providing
subsidies .
Technological: Uses Lithium Ion Batteries in its cars which is rare to
manufacture. Manufactures power train for other manufacturers . Strong
R&D within the company
Physical: Tesla has managed to open 50 stores across the globe. Has a
NUMMI plant to manufacture its cars. They with the help of Panasonic
has managed to set up a Giga factory for manufacturing batteries.
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6. Resources and Capabilities
2:Intangible Resources
Human : Has the most talented and efficient engineers working for
the company. Dedicated R&D team who focuses on improvement of
product
Innovation: Innovation is the key reason why Tesla stands out
among its competitors. Use technologies that are user friendly.
Comes up with the most advanced technologies that are hard to
imitate.
Reputation: One of the most recognized electric car manufacturer
across the globe. Has won many awards and accolades due to its
reputation as a clean energy and ecofriendly car maker.
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7. Value Chain Analysis
R&D Service
Supply
Chain
Marketing
All primary
function
including
R&D is done
by the
company
itself.
Panasonic
designs and
supplies
batteries for
the
company.
Entry into new
markets has forced
tesla to take
control of its own
supply chain
The only function
it relies on outside
parties is the
supply of its
lithium ion
batteries
Marketing of its
product has also
become easy for the
company due to its tie
ups with companies like
Toyota, Daimler,
Google and E-Bay.
Company uses its own
website to receive
orders and contact its
customers.
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VRIO
Model
Value
Tesla’s technologies are
well protected and
patented
Tesla has won many
awards including Global
green award in 2006 and
World Green Car in 2013
The company focuses on
product quality and
ecofriendly innovation
which adds value for the
company
Rarity
Its cars’ use lithium –ion
commodity cells which
are not only cheaper to
manufacture but also rare
to find supply.
Tesla not only focus on
fuel efficient cars but also
focuses on developing
new technology
Tesla is also operates as
original equipment
manufacturer that
supplies powertrain
components to other auto
manufacturer
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VRIO
Model
Imitability
Tesla’s technologies are all
patent protected which
makes them difficult to
imitate its technological
resource
Tesla’s Model S is different
from other electric cars as its
flat batteries are integrated
in its chassis there by giving
it a low center of gravity and
better handling.
Tesla’s unique engine design
makes it the only
manufacturer whose electric
cars that runs on pure
electrical energy whereas
other automakers focus more
on gasoline fuel efficient
type vehicle with its
electrical engine acting as
only a supplement.
Organization
Tesla Motors is a firm that
give priority to innovation
and thus they encourage
each and every employee
to come up with new ideas
Tesla Motors work is
divided to teams which are
small, agile but efficient
work force with a focus on
excellency
Its strong organizational
skill is what helped Tesla
to open its own
showrooms across the
world without the help of
an independent dealer
(Tesla Motors, 2014).
10. Institutional Analysis Of India
Politically: stable government, new government is promoting FDI more companies
are coming forward to invest in India under make in India Scheme.
Economical: According to Goldman Sachs India GDP growth will over take china in
2016 (Businessstandard.com).
Technological: India will having its own GPS system by 2016(TheEconomicTimes),
technologically India is very advanced.
Social: Majority of population is middle class, India is a price sensitive nation.
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