Tesla final ,,
Transcript of Tesla final ,,
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Tesla Enters to China
CHEN LIYUAN 5921489 LIU TIANCHANG 5973422LI RUOYU 5921364 XIE JIALIANG 5916924 MAI NGAN PHAM 5971255 CAO WENBO 5931411 LI YANG 5915042
Content
Current business
environment analysis
New market analysis
Competitive analysis (SWOT
analysis tool)
Entry strategies
Conclusion and
recommendation
Industry and company overview
1.USA company, established in 20032. Provide electric vehicles and technical support3. Current target customers is upper-middle class
Tesla Compan
y
1. New industry - High cost of battery- Require Charging stations2. Support from the States3. Main competitors: BMV, Nissan, BYD
Electric Cars
Industry
Long-term Strategies
Source: Tesla Blog
Step 1 •Produce high-end products for the niche market, build reputation and make the brand well- known.
Step 2 •Produce mid-priced cars to attract more customers
Step 3 •Produce economically priced cars in mass production
Why Moving?
Market saturation in USA Cheaper petrol price in USA (0.83 US
Dollar per liter) Potential markets in emerging countries
Gasoline Prices 2014-December
Lit
er,
US D
ollar
Factors to consider
Volume of Sales
Market characteristi
cs
Incentives from
Government
Infrastructure
Options
Norway •Generous incentive system•3rd largest market of Tesla •Tiny population ( 5 mil)•Remote, mountainous location•Tesla factory in Holland
China•Largest luxury vehicle market, 2nd in Tesla sales•Expanding middle class•The Government’s support•Large population •Lacks of infrastructure•Fierce competition•Government bias
Business environment in China
Features
• Large demand for cars• Relativel stable and balance
market • Government control
Advantage
• More open• Marketpotential(global)• Cheap lobour• Rapiad economic growth
Disadvantage
• Cultural differences (guanxi,face)
• Increasing competition of FDI
• Corruption
SWOT analysis
1. A low electricity costs, reduced fuel and maintenance costs2.Free charging network construction3.online customer experience4.Focusing on the development of a small number of classic brands
1.Cost and price2. The electric field has not been developed3. Increasing selling expenses
1. China have huge population and market demand2. Environment protect awareness3. Cheaper labor and human resources
1. Other brand electric car2. land resources 3. Chinese policy support issues
Threats
Weaknesses
Opportunities
Strengths
Entry Strategy In China
Set up local partnership to build a Chinese plant for local
production (Changan
Automobile Group)
Build charging stations across the
country
Produce both high-priced and
medium-priced products
Conclusion and recommendations
China
Thank you for listening!
Car per capita saturation in USA
Source from : (Dargay, 2007)
Tesla's selling Expenses
Tesla's selling Expenses
Thousand U
S D
ollars
Source from: Tesla annual financial statement
Internal problem ( working affiance, etc)
External problem (resources fees etc.)
Logistics costs ( American to China)
Changan Automobile Group
Chinese state-owned automotive manufacturing company
One of the “Big Four” Chinese automakers
18 production bases throughout China Introduced a hybrid automobile in 2007
Reference List
Dargay, J. (2007) Vehicle Ownership and Income Growth, Worldwide: 1960-2030. University of Leeds: Institute for Transport Studies
TESLA MOTORS, INC. ANNUAL REPORT. (2013). Tesla motors, inc. annual report on form 10-k for the year ended December 31, 2013. Washington, D.C. UNITED STATES: UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
global petrol prices (2014) Global Petrol Prices [online] available from <http://www.globalpetrolprices.com/gasoline_prices/> [11/26 2014]