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
What does that tell us, Tesla may be having great challenges when it comes to resources and key capabilities? These include; The focus of Tesla Company is on a niche in the automotive industry, which is building and selling electric cars. To a company like General Motors, the electric cars line of business is considered a side business, hence it only needs to study the patterns of Tesla’s cars then build on of its kind that will take Tesla out of business (Debord, 2015). In addition, the economy is also working against Tesla as the gas and oil prices are dropping at a steady but positive way. This would render Tesla’s business unattractive, as people will be able to afford other types of cars other than the electric cars.
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
Question 1: What are the risks for Tesla? Limited operating history Tesla may experience significant delays or other complications in the design, manufacture, launch and production ramp of new vehicles. Tesla growth is highly dependent upon the adoption by consumers of alternative fuel vehicles in general and electric vehicles in particular. If the market for electric vehicles does not develop as we expect, or develops more slowly than it expects, business, prospects, financial condition and operating results will be harmed. Tesla continues to burn cash: With the company’s aggressive spending on research and development, employee compensation, and expansion of its service centers, stores, and other aspects of its business, is making it
The economy of Pakistan has not been going through times where disposable incomes are enough to afford such a higher quality. It completely depends on the customers if they would like to leave the brand and all that comes with it. Most of Pakistani customers who go for Toyota cars are usually the ones who have the ability to afford a status symbol like an expensive car (IMC, 2013). Not many people can do that other than the ones living in urban areas. Increase or decrease in number of sales can show how strong or weak buyer power is.
Ford came into profitability by employing new technologies, reducing operational costs, and changing its culture, which has proven very successful (Grant, 2010). Moreover, today, it is still operating in the black and competing with the global automobile
The difficult part of this venture is making it a reality considering the high cost of production and challenging market. Investing in an electric car industry may require business to be conducted the old-fashioned way, which is getting people to pay for the business. In addition, setting up the company as a public company has the benefit of increasing investment and market share on the company even though the public will also hold the management of the company accountable (Osterwalder et al., 2010). Collaborating with other Motor companies such as Toyota and green energy companies such as SolarCity to provide power for charging the company appears to be a viable option towards establishing an electric car company. In addition, working with states with the promise of creating jobs, injecting economic growth and reducing environmental pollution will compel states to offer their support towards the establishment of facilities necessary for the establishment of an electric car company (Cravens & Piercy, 2009).
While most industries have an effect on the economy, the automotive industry has far-reaching implications for most Americans. Not only are the workers affected but the many spin-off jobs created as well as the consumers that must purchase the automobiles manufactured. The automotive industry is considered elastic. The prices fluctuate depending on supply and demand. For example, when the economy takes a downturn and car sales are down the automakers attach incentives to the purchase of new vehicles to stimulate sales such as interest-free loans, rebates and lowered prices to encourage Americans to purchase their goods.
It shows how as Tesla continues to innovate, it’s leading the auto industry, and it’s far ahead of competitors when it comes to developing electric car battery technology,” (Fehrenbacher). Tesla has improved on its battery chemistry to further the range of their cars, and even increase acceleration. The new battery will be introduced into the Model X, their SUV, and the Model S, their sedan and will keep the electric range of those vehicles much higher than the competition. The other benefit of electric vehicles is the immediate availability of power and torque. Tesla has taken advantage of this physics phenomenon and stored 792 pound feet of torque in their sportiest model, the Tesla Model S P100D.
Market Apple has become a leader in the consumer electronics industry with the products they produce like computers, portable media players, smart phones, and software. As a competitor in an oligopoly market they have fewer businesses to take into consideration, which the competition is based on which product is evaluated. For example, the computer-based side of the company competes with companies like Microsoft and Hewlett Packard. When it comes to smart phones, their biggest competitors are Samsung and HTC. Luckily, for Apple, there is not a lot of new companies entering the market because their business is so technologically advanced which sets barriers to entry high.