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Tesla Motors
Case Study
Presentation
Angela
Christina
25865307
Joash
Wan Aznir
25346571
Yeo Yong Peng 25659197

Scope of Presentation
1. What are the challenges of competing in the
electric vehicle industry?
2. Conduct a SWOT analysis for Tesla.
3. How is the Tesla Model S positioned in the
market? How do its functional-level strategies
align with this positioning?

Introducing Tesla Motors


Named after electrical engineer Nikola Tesla
Founded in 2003, Based in California, Elon Musk
CEO
Designs, develops, manufactures and sell pure
EVs.
Offers three model line-up: Model S, X and 3.

Q1
What are the challenges of
competing in the electric vehicle
industry?

Challenges in the
Electric Vehicle
Industry
Presentation by Wan Aznir 25346571

The Automobile Industry


Less players, Highly competitive, High R&D cost,
High economies of scale manufacturing, rapid
model change, slowing demand, changing
consumer tastes.
Weight reduction, Autonomous driving,
Connectivity.
Reducing Emission with renewable Energy with

Challenges in the EV Industry


Early stage of Electric Vehicle Industry Life-cycle.
Slow adoption of EV and relatively in a Niche
Market.
High cost of R&D, needs refinement and not
perfect.
Short driving range and slow battery charging.
Poor weak energy charging station infrastructure.
EV products expensive and slow sales.
Few players, other players are focusing on other

Bargaining Power of Buyers


Slow adoption of EV may force the
industry to reduce prices

Rivalry with existing Competitors


Few competitors with high exit barrier

Threats of New Competitors


High R&D cost and expertise
suggests low threat of new entrants.

Threat of Suppliers
Complex product standardization leads to low
switching cost.
Suppliers may enter the industry as competitors.

Threat of Substitutes
Sharing car mobile apps and Driverless cars

Q2
Conduct a SWOT analysis for
Tesla.

Strengths &
Weaknesses
Presentation by Christina Choo 25865307

STRENGTHS & WEAKNESSES:

STRENGHTS

1. Outsourcing of
Secondary
Components

2. Acquired Numerous Investors

3. Good Distribution

4. Lean Management System

WEAKNESSE
S

1. Lack of Liquidity

2. Limited Operating History

3. Shortage of Lithium Battery


Cell

Q2
Conduct a SWOT analysis for
Tesla.

Opportunities &
Threats
Presentation by Yeo Yong Peng 25659197

Opportunities

Opportunities
Limitation of oil: Increase in price of oil & gas
Increasing Demand: People are becoming more
and more concerned about environmental issues
Subsidy Programs: Many countries offer subsidies
to these types of green energy companies

Opportunities
Increasing Market: Some auto manufacturers
buying electric technology from Tesla (eg: Daimler
& Toyota)
Tesla Charging Station: Provide charging station
to other auto manufacturers

Threats

Threats
Expensive: The price of electric cars is more
expensive
Increasing Competitors: Not only tesla is
producing eco-friendly cars
Strong Opposition: Electric vehicle related
accidents may scare away customer
Less Attractive: Customers are range anxiety

Q3a
How is the Tesla Model S
positioned in the market?

Position of Tesla S
Presentation by Joash Hng 25907050

Roadster (sports)
0-100km/h, 3.7s
$109,000 (base model)
$128,900 (sport model).

Model X (SUV)
0-100 km/h, 3.2s
$81,200

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