INTRODUCING TESLA MOTORS IN INDIA

Done By: Ajith Kumar R (4575325)

Mithun Manohar (4630907)

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INTRODUCTION

Tesla motors was found by Martin Eberhard and Marc tarpenning in the

year 2003.

Roadster was the first electric car launched by the company, which was a

huge success.

Tesla Motors joined hands with Daimler and Toyota to provide support

for power train components for their hybrid cars.

Now the company had a net worth of $25 billion.

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Strong R & D team, Better Technology Skilled workforce.

Slow sales rate, Higher price without subsidies.

Increasing demand of hybrid cars, governments promoting hybrid cars by

giving subsidies.

Brand awareness, high level of competition with rivals, expensive battery.

Porters Five Force Analysis

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Rivalry among

Competitors

Current competitor

is Mahindra E20

and many

companies are

planning to enter

into Indian market

like Nissan, Toyota

Bargaining Power of SuppliersMost manufactures set their own plant in India

due to cheap labour and abundant raw materials.

Imported parts cost more.

Threat of New EntrantsToyota, Hyundai, Nissan and Chevrolet are

coming with their hybrid models to Indian market.

Bargaining Power of BuyersHybrid cars are much costly than fuelled cars.

Indian citizens are price sensitive and mileage

concerned.

Threat of SubstitutesPrice without government subsidies will be a

major concern for Tesla. Many manufactures are

coming with improved technology.

Resources and Capabilities

1:Tangible Resources

Financial: Tesla over a short period of time has managed to enter several countries like Australia, Canada, New Zealand , etc. Has many investors like Google, Daimler etc. US government is also funding and providing subsidies .

Technological: Uses Lithium Ion Batteries in its cars which is rare to manufacture. Manufactures power train for other manufacturers . Strong R&D within the company

Physical: Tesla has managed to open 50 stores across the globe. Has a NUMMI plant to manufacture its cars. They with the help of Panasonic has managed to set up a Giga factory for manufacturing batteries.

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Resources and Capabilities2:Intangible Resources

Human : Has the most talented and efficient engineers working for the company. Dedicated R&D team who focuses on improvement of product

Innovation: Innovation is the key reason why Tesla stands out among its competitors. Use technologies that are user friendly. Comes up with the most advanced technologies that are hard to imitate.

Reputation: One of the most recognized electric car manufacturer across the globe. Has won many awards and accolades due to its reputation as a clean energy and ecofriendly car maker.

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Value Chain Analysis

R&D ServiceSupply

ChainMarketing

All primary

function

including

R&D is done

by the

company

itself.

Panasonic

designs and

supplies

batteries for

the

company.

Entry into new

markets has forced

tesla to take

control of its own

supply chain

The only function

it relies on outside

parties is the

supply of its

lithium ion

batteries

Marketing of its

product has also

become easy for the

company due to its tie

ups with companies like

Toyota, Daimler,

Google and E-Bay.

Company uses its own

website to receive

orders and contact its

customers.

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VRIO

Model

Value

Tesla’s technologies are

well protected and

patented

Tesla has won many

awards including Global

green award in 2006 and

World Green Car in 2013

The company focuses on

product quality and

ecofriendly innovation

which adds value for the

company

Rarity Its cars’ use lithium –ion

commodity cells which

are not only cheaper to

manufacture but also rare

to find supply.

Tesla not only focus on

fuel efficient cars but also

focuses on developing

new technology

Tesla is also operates as

original equipment

manufacturer that

supplies powertrain

components to other auto

manufacturer

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VRIO

Model

Imitability

Tesla’s technologies are all

patent protected which

makes them difficult to

imitate its technological

resource

Tesla’s Model S is different

from other electric cars as its

flat batteries are integrated

in its chassis there by giving

it a low center of gravity and

better handling.

Tesla’s unique engine design

makes it the only

manufacturer whose electric

cars that runs on pure

electrical energy whereas

other automakers focus more

on gasoline fuel efficient

type vehicle with its

electrical engine acting as

only a supplement.

Organization

Tesla Motors is a firm that

give priority to innovation

and thus they encourage

each and every employee

to come up with new ideas

Tesla Motors work is

divided to teams which are

small, agile but efficient

work force with a focus on

excellency

Its strong organizational

skill is what helped Tesla

to open its own

showrooms across the

world without the help of

an independent dealer

(Tesla Motors, 2014).

Institutional Analysis Of India

Politically: stable government, new government is promoting FDI more companiesare coming forward to invest in India under make in India Scheme.

Economical: According to Goldman Sachs India GDP growth will over take china in2016 (Businessstandard.com).

Technological: India will having its own GPS system by 2016(TheEconomicTimes),technologically India is very advanced.

Social: Majority of population is middle class, India is a price sensitive nation.

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• ANY QUESTIONS?

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