Electric Car and Tesla Motors

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Building on the SCP model, Michael Porter developed the highly influential five forces model. Porter’s model identifies five key competitive forces that managers need to consider when analysing the industry environment and formulating strategy: Porter‘s 5 competitive forces model is starting point for strategic analysis that is used for assessing the attractiveness of an industry (Johnson,et al , 2008) and discovering a desirable strategic innovation that improve the industry and company profitability (Wit and Meyer,2005) The threats to new entrants: The threat from new entrants is very high. Entering the electric automotive industry in 2003, Tesla itself faced the challenges of being the new entrant into the market having numerous…show more content…
In addition, every company is trying to create their niche, developing many alternatives in term of environmentally friendly cars, including hybrids, small performance turbo diesels and biodiesel cars. Thus, in future, the rivalry will be more intensive and companies will need to keep innovative, improving and making better cars. Brown, N. (2013). Daimler Wants Increased Cooperation With Tesla Motors. [online] CleanTechnical. Available at: http://cleantechnica.com/2013/11/07/daimler-wants-increased-cooperation-tesla-motors/ [Accessed 6 April. 2014 Harryson, S. and Keller, S. (2014). Tesla Motors Case II: From Technology Start up to Commercialization Vehicle.CIEL. [online] Available at: http://ciel-lab.dk/wp-content/uploads/2013/04/Case_Tesla-Motors-Part-II.pdf [Accessed 1 April. 2014] Insideevs.com, (2014). February 2014 Plug-In Electric Vehicle Sales Report Card | Inside EVs. [online] Available at: http://insideevs.com/february-2014-plug-in-electric-vehicle-sales-report-card/ [Accessed 3 April. 2014] Ministry of Transportation, (2010). Newsroom : Ontario Paves The Way For Electric Vehicles. [online] Available at: http://news.ontario.ca/mto/en/2010/06/ontario-paves-the-way-for-electric-vehicles.html [Accessed 4 April. 2014] Tesla Motors, (2014). About Tesla | Tesla Motors. [online] Available at: http://www.teslamotors.com/about [Accessed 20 April. 2014
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