Tesla Motors
[pic 3][pic 4]INDex01 / INTRODUCTION 02 / COMPETITOR ANALYSIS – TESLA A. TESLA BUSINESS MODEL B. AUTOMOTIVE INDUSTRY C. POWERTRAIN SUPPLIER 03 / RECOMMENDATION EXHIBIT 1 – Value Chain EXHIBIT 2 – Porter five forces – Automotive industry EXECUTIVE SUMMARY INTRODUCTIONTesla has been agitating the automotive industry by introducing new elements that are changing the value chain (see exhibit 1). Tesla’s entrance has acted as a catalyst for reshaping the industry, but the question remains of whether or not Tesla can develop a sustainable competitive position for the future that will undermine established automakers like BMW.
COMPETITOR ANALYSIS – TESLAA. TESLA BUSINESS MODELTesla’s business model can be conceived to be a successful one. The degree of Tesla’s success can be framed within various perspectives: operational – to assemble the model S in-house, Tesla was able to set up a production plant by less than one third of the $1bln that it would normally cost[1]; brand awareness & customer acceptance – Tesla received appraisal awards from the trade industry – “2013 Car of the Year” – and consumers – “the highest rating that Consumer Reports ever gave to a car”; innovation – the powertrain represents Tesla’s competitive advantage in the Electric vehicles (EV) market together with a battery that has a lower cost per KWh ($250-$300 per kWh) and higher autonomy (250 miles) than Nissan Leaf (its main competitor within the EV); a “new” value chain – Tesla’s business model created new processes that add value to its customers (see exhibit 1); growth – Tesla’s yearly sales increased between 2010-2013 ($970million in 1st half of 2013)[2]; and profitability – Tesla is not a profitable business yet but the trend is favorable -exhibited its 1st positive net income in the 1st half of 2013 ($49m)2.