PUSH STRATEGY

AUTOMOBILE INDUSTRY
Group 1
 PUSH SCM

• Logistics are driven by long-term projections of customer demand i.e. A push

logistics strategy is a forecast-led approach.

• Companies who use this approach rely on forecasting in order to know how much
stock to order. Decisions are made when stock is ordered.

• Under a push system, companies have predictability in their supply chains since
they know what will come when – long before it actually arrives.

• This also allows them to plan production to meet their needs and gives them time
to prepare a place to store the stock they receive.
 TESLA MOTORS
 There are eco-friendly cars and there are luxury
cars, tesla is the first brand to combine both.
 Uses both luxury market and green market, by
providing electric cars.
 Equipped with auto pilot mode.
 Sharp aesthetics attracts many sectors of car
buying market.
 Also provides charging station for their cars.
 WHY TESLA?

 New form of selling with no dealership.

 Appealing the car industry.
 Prove to transform the market.
 Brand recognition and technology validation.
 Worlds class management team.
 Successful sales and marketing strategy.
 TESLA PUSH SCM
Trade show such as CES or Auto show to encourage retailer demands.

Direct selling to customers in showrooms

Tesla doesn't have a massive advertising budget,nor does it conduct multinational marketing
campaigns. Instead, Tesla relies on word-of-mouth marketing and mall showrooms for selling its
cars. This works because of Tesla's tremendous brand loyalty.

Word of Mouth referrals - At a phone-in news conference Wednesday, Elon Musk announced
Tesla is beginning a new experimental referral program which knocks $1,000 off the price of a
Model S for buyers who are given a referral link from current Model S owners. The current
Owners who refer their friends will receive $1,000 to be used towards a new Tesla, service
or accessories.
 PUSH STRATEGY
 ADVANTAGES
 Economies Of Scale
 Producer centric
 Long Term Planning
 Readily Available Stock
 More control

 DISADVANTAGES
 Can generate large quantities of scrap before error is discovered.
 High Carrying Costs
 High Debt Levels
 Rescheduled production cycles
 Requires regular updates to maintain product flow.
PRODUCTS
FINANCIAL STATUS
FUTURE OF TESLA.
 To make cars that are affordable to an average middle class person
 To gain a market share in other countries.
 Competing with the already present motor giants in those countries, example:
Maruti Suzuki in India.
 To create more durable and long lasting batteries.• Reaching the 100 billion
mark in the Tesla Vehicle revenue
 To make completely self driving cars without any human intervention.
 Making more and more people aware of the benefits of using an electric car.

 Trying to eliminate the so called "Tesla killers" from the game.

 THANK YOU!!!

PUSHKARAJ JOSHI
RASHI JOSHI
PURAAN SHARMA
RAHUL KUMAR
PRATIKSHA PATIDAR
PRAJJWAL RANKA
PRAVIN RAKH