1. DISRUPTION
technology
Climate change
Direct sales

2. 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

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

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

5. 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

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

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

8. 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

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

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

11. 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

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

13. 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

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

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

16. WE NOW WELCOME ANY QUESTIONS
THANK YOU
WE NOW WELCOME ANY QUESTIONS