When you talk about a world leader in electric vehicle (EV) business, there is one name that always jump right into people’s minds. That is Tesla. Tesla Motors Inc. is the world’s largest manufacturer and vendor of electric vehicles (EV) powertrains. The company under a multiyear agreement with Toyota also supplies full powertrain for Toyota RAV4 EV (Tesla Motors Inc., 2015). Tesla has expanded its relationships with Mercedes Benz as well. Under the A-Class and Smart for two programs, Tesla manufactures two brands of electric vehicles for Mercedes Benz. Currently, Tesla and Mercedes have plans that are already underway to start the development of an M-B vehicle that has the Tesla powertrain in it. Reports from these two leading car manufactures indicate that the program will commence sooner than expected.
Tesla Motors, Inc. was founded in 2003 and joined the automobile industry out of Silicon Valley. The company is located in 30 different countries with 18 stores worldwide (Mangram, 2012, p. 296). Tesla Motors entered the automobile industry from a different approach in manufacturing automobiles. The company began designing, manufacturing, and marketing battery electric vehicles (BEVs) making Tesla the only manufacturer to sell a zero-emission sports car, the Tesla Roadster (Mangram, 2012, p. 296). Tesla manufactured luxury electric vehicles such as Model S, Model X, and the soon to be released Model 3 (Eisler, 2016, p. 35). With different automobile manufactures entering the BEV market, Tesla Motors, Inc. must conduct a SWOT analysis of the company. “SWOT stands for the company’s Strengths, Weaknesses, Opportunities, and Threats” (Abraham, 2012, sect. 5.2). Strengths and weaknesses analyze the internal aspects of the company, whereas opportunities and threats analyze the external aspects.
Their present strategy is to develop, acquire and commercialize electric vehicles and electric vehicle propulsion systems that have fundamental, practical and environmental advantages over available internal combustion modes of transportation, while also having the ability to be produced commercially on an economically competitive basis. Also, they have positioned themselves as the premier EV provider, have strong focus on
It also keeps on heating the vehicle interior until the engine has warmed up and can provide a comfortable level of heat for the driver and passengers. The convenience is made up of several aspects. The programmable controller assures that the vehicle interior will be warm at a time specified by the owner. The product is installed out of sight, under the driver or passenger seat by the owner, and does not need professional installation. The warmer has its own battery, so it does not affect the vehicle's battery. Once the vehicle engine runs and provides a good source of electricity (alternator), the batteries of the warmer will be recharged through the engines charging system (alternator) via the built-in accessory plugs (cigarette lighters). This is an innovative product because it is all electric, and can be installed by the end-user. Comparable products on the market today use vehicle fuel (gas/diesel) as a source of energy. They are also complex and need to be installed by a professional.
Throughout the past couple decades, Tesla has built an intriguing brand that has captivated the minds of consumers around the globe. In a society burdened with global warming and environmental issues, Tesla’s innovative autos act as breath of fresh air, or even a solution to the woes plaguing our planet. The advantage of
Tesla Motors is a relatively new Silicon-Valley based company that designs and produces electronic vehicles. The company aims at producing consumer affordable price electronic automobiles with zero emissions in the next decade. Currently the CEO Musk is working on introducing the new electronic automobile Model S to the mass consumer market. However, when we look at the external environment, the Tesla Company still faces lots of challenges. The Tesla Motors’ strong competitors are the automobile companies that produce gas cars such as
Tesla’s primary market consists of consumers in-between ages 30-60 who make $80,000 or greater. These consumers desire a safe, ecofriendly, luxury vehicle. They tend to live in upper class cities such as Miami or Las Vegas. At first Tesla was marketing more towards single males with the speed and acceleration factors of the Model S and Model X, but now the Model 3 is going to expand that segment. Families that are looking for safe, affordable, and ecofriendly cars will be attracted to the Model 3. (29)
The sixth and final macroenvironmetal factor Tesla Motors faces is technology. Tesla holds a technological advantage over all of its competitors in comparison with to the overall performance of the vehicle. Tesla’s electric powertrain found in each vehicle allows higher driving efficiencies. With Tesla’s understanding of using energy efficiently the company has created vehicles with superior design by improving technologies of vehicle road-load which encompasses wind resistance, mechanical friction, and tire rolling resistance; energy conversion losses, as well as electric vehicle efficiency. Overall the driving efficiency is 88%
As a pioneer of green technology car manufactory, Tesla Motors has placed himself in the U.S. automotive industry. Tesla Roadster is considered to be a cash cow in 2009, and it is the only electric cars have been mass product. However, after the competitors had entered the market, alternatives joined the battle of green technology car, such as hybrids, fuel cell ,etc. Furthermore external environment has changed. Elon Musk, the co-founder and head of product design, is facing a question either to sell it or continue to run three companies including Tesla Motors at once.
“I’d never buy one of those bloody electric cars!”. “Electric cars are just toys”. “Only greenies would buy that sort of car”. “And who knows how it’s serviced?”. These are the cries of the working world. How can we overcome this resistance to a fundamentally new product? Does a radically new product need radically new marketing strategies? In this paper I am going to explore Tesla’s innovative marketing strategy for motor cars. Don't set up a traditional car yard in the cheap rentals along highways. Set up in the shoppings malls! Increase consumer volume through segmentation and targeting! Capitalize off it by strategic positioning! Provide great service and a top-notch product, along with nifty little trinkets, and create customer value.
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.
One of the most interesting aspects of Tesla, the niche market luxury electric car maker, is the style in which Tesla markets selling its electric cars that cost approximately $100,000. Many companies have attempted to change the car buying process in the auto industry over the last 40 years, with little success. The process of purchasing a car is fundamentally the same as it was a generation ago. Additionally, the traditional process remains unpopular today as it has been for decades. In order to take advantage of an opportunity to develop a new car buying process, Tesla is using marketing that is revolutionizing the business model in the way cars are sold.
In order for Tesla Motors to keep growing now and into the future, it is going to be important to expand their target market to reach more consumers. Expanding the target market to include generation Y (mid-20s to early 40s, middle class working adult), Tesla would be able to utilize their facility, while increasing production. This target market will be pinpointing the young professionals that are looking for an entry level luxury car. We are going to segment the market for our new targets in three categories: eco-friendly consumers, tech savvy and entry level luxury cars.
The market of the luxury, all-electric sports vehicle lines is extremely competitive and Tesla’s Model S falls under all categories. Yet the demand for this vehicle type is high but volatile. Other automobile manufacturer’s research and development may lead to additional competition in the future.
At this point, this consulting team would only provide guidelines for creating corporate level strategies since our task is to present findings and make recommendation regarding the potential of success for EV manufacturers in the state of Kansas. For traditional EV automakers, a move into the Kansas market would be a form of expansion that requires careful consideration of the economic conditions and its unique demographics. With current budget cuts in the state, financial subsidies and incentives from the government may not be adequate to offset the existing barriers facing the EV penetration into the mainstream market segment nationwide. Therefore, the market potential in Kansas is less