Tesla - Strategic Profile and Case Analysis Purpose

Assignment # 1

TESLA

Prepared By

Imran Hoque

Prepared for

Strategic Profile and Case analysis purpose

Tesla Motors is the pioneer in Electric Vehicle industry since 2003. They are niche manufacture of EV at the upper range of the luxury vehicle market with high quality and high performance. Mainly its a “Silicon Valley” car trying to be succeed in the traditional car sector.

In 2013 they are facing several challenges regarding continue their operation with more than 1 billion $ debt. The purpose of this case analysis to find some new strategic directions to overcome the current barriers like grabbing more share in market with maintaining high quality and performance.

Situation analysis

General Environmental analysis

- World is now very much concern with the environmental issues like global warming, green house affects. Conventional cars uses fossil fuels which create carbon emission which creating pollutions. Right now world is going for the environment friendly renewable energy sources.

-  Technology moving faster then any other time. IQ is integrated in cars

- People consumption power of luxury goods is increased.

- Asia becoming the new hub of the economy

- Taste of new generation have been changed.

- Price of crude oil increasing day by day

- International trade become easier

- Manufactures became more social responsible

Industry Analysis

Threat of new entrants: The EV market is highly capital oriented market. For entering this market is difficult due to large investment and superior ability in technology.

Power of suppliers: Most of the player in this industry have own house production. But some of the manufactures have to rely on other suppliers for their power portion.

Power of buyers: Purchase power of the customer play a big role in this market. Still EV is expensive than the other cars.

Product Substitutes: The conventional fossil fuel based vehicle is the main substitutes.

Intensity of Rivalry: This market contain small number of manufactures. But they are very much strong. All the manufactures are trying to get their share in the market. The competition is high.

Analysis Outcome: Tesla is the creator of this industry. They have advantage of the technology. They are already in the market. They have their own house production. Though there is several big fish approaching in the market but Tesla have a chance to sustain.