Consequently the electric vehicle is difficult as popular as a normal car. In fact ordinary consumers will pay more attention to the economy of a vehicle but not whether it is environmental friendly. In addition the low battery life cannot meet the needs of people travelling long distances. Actually Tesla Models has promised that they would establish rapid charging stations network across the United States and all of Tesla 's electric car charging stations can be quickly filled with
While Tesla’s actions are in sync with the long-term strategy, actions taken to meet the short-term objectives are not yielding the expected results. For example, Tesla couldn’t ramp up it’s production capabilities as required, to bring down the wait time associated with delivering it’s cars. On top of it, Tesla repeatedly experiencing production problems and other quality issues which are frequently delaying the deliveries. The targeted customer segment for Tesla’s cars is well differentiated and the product is well positioned in that segment. The challenge Tesla facing is actually in producing the cars, but not with marketing them.
Tesla is simply proposing to replace the standard gasoline car and gas station business model with the model S and a supercharge station network. What the model S needs is not a network of charging stations but a different business model. Issues: Increases in costs, disruption of supply or shortage of raw materials, in particular lithium-ion cells, could harm its business. We may become subject to product liability claims, which could harm our financial condition and liquidity if we are not able to successfully defend or insure against such
If they decide the prices are too high, they can go to the company’s competitors and get a better deal. The bargaining power of the supplier is weak right now. The suppliers in the automotive industry do not have the power to increase the prices of the automotive manufactures inputs. The reason for this is because the suppliers are relying on a few automakers for the purchase of the majority their vehicles. The competition rivalry of U.S. products versus the international competition has been strong.
He knew when he created Tesla Motors major problems would come with it, but that did not stop him from creating greatness. Even though there are other car companies who attempt to make the best electric cars, what makes Tesla Motors different would that they already produce the best electric cars completely different from their competition, their cars cost, energy usage, performance, and mainly direct sales of their cars. When it comes to cars and the cost of them most people aren’t financially able to afford luxury vehicles or have the most efficient vehicles especially electric cars, which would better people’s everyday lives. Elon Musk is the new innovator that wants to change all of that plus more. Currently Tesla Motors car price... ... middle of paper ... ...d, Tesla Motors, is a company that brings new innovations to the auto industry so you are safer and have less worries.
Companies like Chrysler and General Motors have shifted to producing high grade cars for the upscale consumer. This has resulted in Chrysler and General Motors making profits and enjoying greater market share that Ford can’t tap into. Although ford has attempted to advertise and compete in this market it isn’t successful as their culture is so deeply embedded in them that they cannot reach out to high scale consumers in an effective manner. Ford’s inability to reach these consumers has taken away the chance for them to gain market share in the overall car sector and has denied them the opportunity to tap into the profits that the upscale automobile sector can
The strengths are that the supply other companies with parts; Tesla developed the first full electric car; the company is technologically superior in drive train, transmissions and electrical technology. The opportunities are: the growing support of governments for clean energy; the free charging unlike the growing gas prices; the innovation of the whole idea. The Weaknesses are the higher cost of maintenance; higher prices due to lower demand; small segment to target. Threats: not a broad range of models to offer their customers; other high quality brands are a strong competitor; there will always be cheaper
The advantage of a strong brand, investment in R&D and direct communication with the customers could successfully lead the company into the laptop market. However, the laptop market differs from the desktop market in a number of ways. For Dell the main problem will be the manufacturing process. When producing laptops, most parts will be delivered by suppliers and Dell just ads the last parts. This limits the degree of customization possible and since one of Dell’s most important distinguishing features is computer customization, the company risks not att... ... middle of paper ... ... company’s desire to experiment without being afraid of taking risks that could bring failure as well.
➢ Chances of failure in government schemes and incentives Porter’s Five Forces for Electric Car Industry in India • Threat of new entrants: HIGH ➢ Economies of scale ➢ High need for strong Product differentiation, as most of the electric cars are similar in features. ➢ Switching cost is high. ➢ High cost and time of entry • Threat of substitute products: LOW ➢ Fewer substitutes in this industry. ➢ Competition from Hybrid vehicles as they do not require high refueling structure. • Bargaining Power of Buyers: LOW ➢ Currently they have fewer buyers due to their high cost ➢ Choices are limited ➢ Hindrance on after sale service and performance • Bargaining Power of Suppliers: LOW ➢ Lack of ability to substitute in terms of technology ➢ Many firms rely on one or two automakers to buy a majority of their products.