DISRUPTION technology Climate change Direct sales

A DISRUPTIVE SHORT CASE ON THE AUTOMOTIVE INDUSTRY ODETTE CONSULTING: Brandon Lalonde, Jacob McCourt, Jordan Neposlan, Sahi Veeraraghavan Presenting to: North American International Auto Show

Agenda Strategic Analysis: Industry Description Rationale and Key Issues Alternatives Recommendation

Agenda Strategic Analysis: Industry Description Rationale and Key Issues Alternatives Recommendation

PESTLE Analysis of Tesla PESTLE Analysis of the Automotive Industry -USMCA -Government substitutes -Some Governments are raising emission standards -Traditional automotive lobbyists -Cost savings for e-cars -Raise in gas prices  uncertainty controlled by powerful nations -Shift towards demand for SUV’s -Increase in disposable income -Consumers are becoming more environmentally-conscious -American-made -Lithium battery technology is improving -Automatic self-driving cars are increasing -Growing concern of CO2 emissions -Role of union in question in industry as a whole -Increasing government regulations and environmental legislation -Gas is a non-renewable resource P E S T L E PESTLE Analysis of Tesla

x √ Example: VRIO Analysis of Tesla Valuable Rare Inimitable Organized to Exploit Advancements in Technology √ x Environmentally-friendly Direct Sales Model

Agenda Strategic Analysis: Industry Description Rationale and Key Issues Alternatives Recommendation

Reaction from the Automotive Industry Rationale Past Issues Reaction from the Automotive Industry Technology Industry not keeping up with the pace of technological advancement Trying to keep the pace through acquisition, but still slow Climate Change Pace of environmentally-friendly innovation is slow Hybrid and electric cars being released but slowly Direct Sales Model Industry exclusively sells through dealer sales No company has disrupted current sales model

Agenda Strategic Analysis: Industry Description Rationale and Key Issues Alternatives Recommendation

Alternatives Alternative #1: Stay the Course Alternative #2: Lead the Market on Green Technology Alternative #3: Adopt a Direct Sales Model

Alternatives Decision Criteria #1: Stay the Course #2: Lead the Market on Green Technology #3: Adopt Direct Sales Model Cost to Implement 7 5 2 Risk Mitigated by Future Trends 3 8 Effect on Current Sales Model 9 1 Largest Sales Potential 6 Business Risk TOTALS 29 35 15 1-3 4-6 7-10

Agenda Strategic Analysis: Industry Description Rationale and Key Issues Alternatives Recommendation

Making a Decision Decision Criteria #1: Stay the Course #2: Lead the Market on Green Technology #3: Adopt Direct Sales Model Cost to Implement 7 5 2 Risk Mitigated by Future Trends 3 8 Effect on Current Sales Model 9 1 Largest Sales Potential 6 Business Risk TOTALS 29 35 15 1-3 4-6 7-10

Recommendation for North American Automobile Industry Move towards being first-movers in green technology Mitigate disruption of Tesla Lead the Market on Green Technology

Conclusion Issue Recommendation North American automakers have been reactive thus far Issue Lead the market on green technology Recommendation

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