General Motors And Tesla's Competitive Strategies

In automotive operations, there are only a few large companies on the market. Such external factors limit the influence of competition on Tesla Motors and other companies. However, these companies are generally positive about innovation and the promotion of their products. This condition is amplified by the influence of Tesla 's competitors. In addition, customers buy cars from other Low Hinder manufacturers (low switching costs) to further enhance competition. This aspect of the analysis showed that the five armies Tesla rival environment of the automotive industry as a top priority task of strategic considerations.

The automotive industry has continued to evolve alongside changes in lifestyle, and the demand for ease of transportation has allowed the industry to far surpass its competitors.

With the recovery of economy, the world’s automobile industry has been growing steadily over the past few years. According to Bloomberg, the US automobile sales climbed from its depth 10.4 million in 2009 to over 15.6 million in 2013. Furthermore, industry analysts predict that the sales will

There are many issues that are currently facing the American Automotive industry, especially in terms of environmental factors. The automotive industry has been around for a very long time, and is a relatively stable industry, but there are still areas where automotive companies need to adapt and if they fail to do so, they will be at a disadvantage against their peers, both here in America and also globally. In this essay I will break down a few of the issues that I believe are plaguing the American Automotive Industry.

The American automotive industry is one of the largest parts of the national economy. In 2009 it made up 6.6% of the entire American workforce, employing 880,000 individuals.

As cited by the Bureau of Labour Statistics, ‘the automotive industry includes industries associated with the production, wholesaling, retailing & maintenance of motor vehicles’. This industry has had an immense impact on the domestic industry. Nevertheless, with the 2007- 2008 recession, new car sales decreased rapidly reflecting the overall decrease in consumer spending. Thereafter with the aid of government, in early February, 2012 the American Automotive Industry made a brisk recovery, making American automotive companies reign as the biggest & most profitable & it incrementally grew year after year.

The American automotive industry has led the American economy for many years. This industry has shaped our development, and influenced American culture and social mores. Now, ensnared by globalization and other dominant factors, it faces a difficult reality. The American automotive industry significantly impacted the lives of Americans. Detroit’s “Big Three” had the most significant roles in this. Chrysler, Ford, and General Motors were American symbols. They are credited for a significant percentage of all American jobs; they put numerous blue-collar families into the middle class, and helped America cultivate into the giant of the twentieth century. Unfortunately, the fabled automotive firms are not what they once were and are traveling

Since Henry Ford invented the mass production techniques that made cars affordable to the public, the United State 's economy has been dramatically influenced by this key component in its affluence. Exponentially, jobs were created because the auto business grew. Employees were needed for the constantly growing assembly lines. Consequently, Ford 's model Ts became the primary preferred, affordable, mass manufactured cars. (Davis, 2012). For more than a century, the United States ' automotive industry constantly had a large impact on the national economy. The quantity of cars sold annually has always been a reliable indicator of the nation 's economic well-being. Thus, once the recession hit in 2008, automotive sales declined sharply, indicating the decrease in customer purchase power. Environmental challenges impacting the American automotive industry consist of, yet not limited to, fierce global competition, vigorous technological advancements race, emissions and governmental approach toward a cleaner environment and, finally, customer satisfaction of the American product.

(Select USA, n.d.), have identified the United States as having one of the largest automotive markets in the world, as it is home to thirteen (13) auto manufacturers. Similarly, Investopedia.com, (n.d.), states that the North American automobile production market, is dominated by what is known as the “Big Three”, which includes; General Motors, producers of Chevrolet, Pontiac, Buick, and Cadillac, Chrysler, producers of Chrysler, jeep and Dodge, and Ford Motors, producers of Ford, Lincoln and Volvo”.

Tesla Motors (regularly abbreviated to Tesla) is an American automaker and energy stockpiling corporation established in July 2003 by Elon Musk, Martin Eberhard, Marc Tarpenning, JB Straubel and Ian Wright, and is centrally locaeted in Palo Alto, California. The organization represents considerable authority in electric autos and their powertrain segments furthermore delivers battery charging gear.

As a young automotive company, Tesla Motors, Inc. exhibits a list of strengths that has made the company successful with manufacturing and selling of their luxury electric vehicles (Eisler, 2016, p. 35). Tesla Motors, Inc. has a technological advantage in the battery market industry with their partnership with Panasonic. Panasonic and Tesla collaborated in the development of the Gigafactory, which “is designed to churn out cells for battery electric vehicles (BEVs) with a combined energy storage capacity of 35 GWh per year – more than the total energy storage capacity of lithium-ion batteries produced worldwide in 2013” (Martin, 2014, p. 327). With the large capacity batteries, Tesla BEV’s driving range are incomparable to other competitor’s hybrid or electric plug-in vehicles.

Tesla Motors, Inc. was formed in 2003 in Palo Alto California with an aim to use technology to produce cars that ran on electricity. The company majors in two main brands of electric cars, the Model S sedan and the Roadster sports car. However, customers have raised concern over the battery life of the Tesla brands of cars and as such, producing a wind-powered generator to recharge the car batteries would be a welcome move for the company. The company’s target group is males aged 30 and 50 who are environmentally –conscious and would like to travel long distances without stopping thereby cutting back on the use of non-renewable sources of energy. Moreover, the company’s value proposition includes building top quality cars that would perform well and thus provide customers with high quality service. As such, the company had envisioned a move to tap the market for vehicles that use renewable energy before competition creeps in.

The automobile industry is one of the most prosperous industries in the United States. For years, it had a big impact on the American economy. But with the recession of 2007-2008, consumer spending decreased and new car sales plunged (Davis, 2012). Big automobile firms like General Motors and Chrysler were on the verge of bankruptcy (Davis, 2012). Luckily, the American government intervened to rescue these firms through bailout money (Davis, 2012).

Tesla now has been recognized as a unique company in a general car market. It’s the first and only car industry that introduced electric car to the consumer in the very early stage. Nevertheless, it is still facing the problem called competition. Tesla just came to the market for over 10 years with the successful of only three models and there are still hundreds of other luxury car companies have been there for a decade such as Mercedes-Benz, Audi, BMW and even middle or lower income class as Toyota, Mazda, Mitsubishi ect. With the market where majority of the consumers are currently using gasoline cars, Tesla will have to strive hard to get consumers to start thinking and get used to the new innovation and technologies. Tesla has very limitation on their type of cars where other company cars having different type of models. Mitsubishi has recently announced that they have introduced a hybrid car called Outlander PHEV where their system can be run either by gasoline, petrol or electric. This car was introduced as the ultimate in intelligent motion and can represent the next generation of hybrid and electric vehicles (Mitsubishi). More importantly, Tesla will be facing directly with Ford company who is reviewing its plans for introducing out autonomous vehicle by 2021 said Chief Executive Jim Hackett. Overall, even though Tesla Inc

Tesla use swinging by the fences strategy, which implement high risk business, however generate high return. First, we target the high end customer by producing high class product. We produce the product at the same level as Maserati, Porsche, etc. We need to make an high brand image for the brand, especially the Tesla brand is still new to the automobile industry. Telsa has this different aspect from other car nowadays, Tesla operated by battery or we could say Tesla produce electric car. After we got quite some revenue to expand our market, we will target new segmentation of customer, which lower than the above explanation. We produce a product with price range from US$ 50,000 – US$ 75,000, which has lower class than Maserati and Porshe. We use this marketing