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Motors Tesla (TSLA) History:

• Founded in 2003 by Elon Musk (Current CEO), JB Straubel (CTO),


Martin Eberhard, Marc Tarpenning, and Ian Wright
• Tesla Roadster
• First manufactured product, offered from 2008-2012
• Model S
• Currently only vehicle offered, 2012-present
• Model X
• SUV, expected to be sold in early 2016
• Model 3
• Expected to be offered in 2017
• Target Price: $35,000
• IPO: January 29, 2010, raised US$226 million
• First American car company to go public since Ford (F) in
1956
• Turned first profit in Q1, 2013
Mission and Vision:
• Mission Statement: Tesla Motors designs and sells high-
performance, highly efficient electric sports cars, with no
compromises. Tesla Motors cars combine style, acceleration, and
handling with advanced technologies that make them among the
quickest and the most energy-efficient cars on the road.

Courtesy www.teslamotorsinc.blogspot.com

• Vision Statement: To “create the most compelling car company of


the 21st century by driving the world’s transition to electric
vehicles.”
Copyright | CENGAGE Learning | Strategic Management
General Environment Analysis:

Segment Elements Industry Effect

Political/Legal • Regulations on Emissions and Safety Standards Neutral

• National Traffic and Motor Vehicle Safety Act, 1966

• Energy Policy and Conservation Act, 1975

Technology • Higher demand for reliable, fuel efficient vehicles Positive

• Alternate fuel vehicles (Ethanol, Biodiesel, Hydrogen Fuel Cells)

• Online shopping/research

Sociocultural • Luxury vs. Economy Vehicles Positive

• Power vs. Fuel Efficiency


Integrated SWOT Analysis:
• Strengths
• Brand Equity
• Product Quality
• Eco-friendly Product Line
• Enhanced Opportunities
• Increase Market Share through High-Growth EV Industry
• Limited Threats
• Consumers Deterred due to “Range-Anxiety”

Competitor Analysis: Toyota


Strategy Current Strategy

Business Differentiation: The firm seeks the broadest possible market with distinctive offerings

Corporate Related Linked: The firm operates five automotive brands (including Toyota, Lexus, and Scion) in addition to p
other automotive and nonautomotive firms

Cooperative Horizontal Complementary Strategic Alliance: Each partner is committed to combining their resources and sk
within the value chain
International Transnational: the firm seeks to achieve both global efficiency and local responsiveness.

Competitor Analysis: General Motors

Strategy Current Strategy

Business Differentiation: The firm seeks the broadest possible market with distinctive offerings

Corporate Related Linked: The firm operates thirteen brands (including Chevrolet, Buick and Cadillac) in addition to
automotive and nonautomotive firms.

Cooperative Horizontal Complementary Strategic Alliance: Each partner is committed to combining their resources an
within the value chain

Internationa Transnational: The firm seeks to achieve both global efficiency and local responsiveness.
l

Current Strategies:
• Business Level: Focused Differentiation
• Target early adopters with high income
• Corporate Level: Related Constrained
• Dominant business selling cars but also sells electric power
train parts
• Cooperative Level: Strategic Alliances
• Panasonic, Toyota, Dailmer, Mercedes Benz,
• International Level: Transnational
• U.S, Asia, Australia, Europe, and Canada
• Centered in California

Toyota General Motors

Marketing Superior Superior

Distribution Inferior Inferior


Value Chain Comparison:

Strategic Issues:
• Small company
• Limited capital
• Niche market
• Charger network
• Range concerns
• Lithium-ion batteries
• Distribution network