1. Tesla Motors Saurav Sengupta Danielle Darisse Michael Easton
Nicholas Lawrence
Julian Saldana
Amed Tovi
Tesla commercial

2. Mission/Vision
To produce a fully electric car, rather than a hybrid.
To create a better looking tomorrow by producing efficient, zero emission electric vehicles without too many compromises.
To switch from mine-and-burn hydrocarbon economy to a solar electric economy
Goals
- “Accelerate the world’s transition to electric mobility with a full range of increasingly affordable cars.”

3. Sustainable Competitive Advantage
Core Competencies and
Sustainable Competitive Advantage
Advanced battery technology
Working with Toyota and Daimler
Top-Down vs. Bottom-up approach
- High performance sports cars to affordable family cars helps avoid the competitive prices that other companies are facing.

4. Industry Analysis Tesla produces high-end electric vehicles (EV)
Starting price of $89,000
Only produces fully electric cars
Highest safety rating of any car on the market
Working in collaboration with Toyota to make EVs (Toyota RAV4 EV)
Also sell their batteries to competitors to foster innovation

5. Competitor Analysis Electric Car industry, Hybrids
Main competition consists of Hybrid Vehicles, electric and gasoline powered alternatives
Key competitors consist of General Motors, Ford, Nissan

6. Competitor Analysis General Motors Ford Nissan
#1 sales leader with the hybrid Chevrolet Volt
Less charge, Lower rage and performance
Lower MSRP at $26,685
Ford
Secondary Sales leader with the hybrid Energi
More range than the Model S but as a hybrid; emissions are much higher
Nissan
Rising competitor with the Nissan LEAF
100% electric like the Tesla
Lower range but lower price point

7. Helpful
Harmful
Internal
Strength:
-Great expertise in the field of electric vehicles
-Luxurious brand receiving attention for a combined sporty, luxury, eco-friendly approach
Weakness:
-Priced much higher than competitors
-Small start-up business with high production costs
External
Opportunity:
-only fully electric vehicle with high performance
-increasingly environmentally conscious world with more demand for fuel efficient, environmentally friendly vehicles
Threats:
-Hybrids are more affordable electric/combustion engine vehicles that are a safer bet for many consumers
-Pricing strategy and order placement puts Tesla at a disadvantage for high demand orders

8. Company Analysis Tesla is relatively new to the electric car market
Specifically concerned with making fully electric vehicles rather than Gas or Hybrids
Gives the Company the advantage of being focused on one unique type of product
Luxurious brand name
High performance while being fully electric
Priced much higher than competitors
Small start-up business with high production costs
Hybrids have similar performance for less

9. Helpful
Harmful
Internal
Strength:
-Great expertise in the field of electric vehicles
-Luxurious brand receiving attention for a combined sporty, luxury, eco-friendly approach
Weakness:
-Priced much higher than competitors
-Small start-up business with high production costs
External
Opportunity:
-only fully electric vehicle with high performance
-increasingly environmentally conscious world with more demand for fuel efficient, environmentally friendly vehicles
Threats:
-Hybrids are more affordable electric/combustion engine vehicles that are a safer bet for many consumers
-Pricing strategy and order placement puts Tesla at a disadvantage for high demand orders

10. Consumer Analysis The Premium electric car maker Few competitors are
Nisan Leaf
Chevy Volt
Base Price of the Model S - $62,400 including a $7,500 tax credit
Appealing designs will get the attention of car enthusiasts
Doing well in Sales
Tesla sold 4,714 cars in 2013 (more than Porsche and Land Rover)
Consumer saves $4,248 annually based on 30k miles driven

11. Market-Product Focus Marketing and Products Objectives
Have a vehicle that does not require gasoline
Perform among the top premium car makers
Green future
More affordable in near future
Target Market
High-end car market (BMW, Audi, Porsche…)
Upper middle class
In future a family product
Consumers looking to go green

12. Market-Product Focus Positioning Tesla has one car to focus on
Performance (Power, driving range, Cosmetics)
Nissan Leaf miles VS. 250 miles with Model S
Tesla’s ionic design
Only electric car in its Price range
Least amount of CO2 emissions and unmatched efficiency
Positioning
Category of premium cars and electric cars
The advantage of being green without compromising the luxury of a quality
Trying to put itself in a position similar to the BMW “Ultimate Driving Machine”

13. Product Strategy
Tesla has 2 current product lines, with a third in pipeline
Roadster- Electric Sports performance car
Comparable to Ferrari and Porsche in performance
Energy efficiency better than a Prius
Model S- Electric Luxury Sedan
Zero emission
Performance comparable to top luxury sedans
Half the price of the Roadster
Tesla’s concept- Provide for the needs while keeping in mind the eco-friendly wants of the consumer

14. Tesla roadster

15. Tesla model s

16. Price strategy
Roadster was their flagship model priced as luxury item with limited availability which increased the product’s popularity
Justification of the price- to accumulate resources to further the company goals and provide a more reasonably priced product
Model S onwards priced similarly to other mainstream product
Later products aimed toward middle and lower-middle class

17. Promotion Strategy
Tesla operates with nearly no cost in paid advertising
Compared to $25 million spent on advertising by Nissan on Leaf EV
Much of the publicity generated through the use of social media
Use of Tesla stores to promote their electric vehicles
Using Apple stores method

18. Channel Strategy
Tesla takes a unique approach in their distribution strategy compared to other auto manufacturers.
Tesla has few dealerships therefore operates mainly through their website and Tesla stores.
Tesla employs the pull strategy due to their inability to meet current demand of orders
Customer orders are made-to-order and are delivered directly to the consumer

19. Questions?