tesla motors

45
TESLA MOTORS The Presentation Michiyo Fukuhara Eric Watson Luke Freitas Erdem Tokmakoglu 1

Upload: erdem-tokmakoglu

Post on 14-Aug-2015

132 views

Category:

Business


7 download

TRANSCRIPT

TESLA MOTORS The Presentation

Michiyo Fukuhara Eric Watson Luke Freitas Erdem Tokmakoglu

1

PRESENTATION FLOWAG E N DA

2INTRODUCTION

3COMPANY OVERVIEW

5STEEPLED

4POSITIONING

6PORTER’S FIVE

FORCES

7INTERNAL ANALYSIS

8TESLA’S CORE COMPETENCE

1RESEARCH

TOPIC

9LESSONS

10FUTURE

CHALLENGES

RESEARCH TOPIC

TESLA MOTORS INC

How d o e s Te s l a ’s co re co m p et e n c i e s a n d ot h e r i nt e r n a l f a c t o r s a f fe c t i t ’s s u cce s s i n i t s ex t e r n a l e nv i ro n m e nt ?

3

INTRODUCTIONA N A LYS I S

12850“to accelerate the advent of sustainable

transport by bringing compelling mass market electric cars to

market as soon as possible”

31Different Countries Mainly US, Japan,

Norway

64%I n c re a s e d i t s m a r ket s h a re

2002Founded in Silicon Valley by Elon Musk, Marc Tarpenning, and Martin Eberhard

$52400“Motor Trend Car

of the Year Award”. 4.2 Sec to 100 KM/h

5 Star Safety 30 Min Charging 8 Year Warranty

300M (482 KM) Range

Units Soldin 2013

2,964 Employees 760 % Improvement

4

COMPANY OVERVIEW

TESLA MOTORS INC

5

TESLA PRODUCT ROADMAPCO M PA N Y OV E RV I E W

I

Founded in 2003 By Martin Eberhard, Marc Tarperinning

I

Elon Musk Joined With Series A Investment

in February 2004

I

Tesla Roadster Shipping since 2008

sold over 1,800 in over 300 countries

Over 13 million miles driven

I

Tesla Roadster Shipping since 2008

sold over 1,800 in over 300 countries Over 13 million miles driven

2013 VEHICLEM

ARKETING

20 KWh EU VERSION APAC VERSIONMODEL X RIGHT HANDED DRIVE, ALL WHEEL DRIVETHIRD GENERATION

EU & ASIA MARKETING LAUNCHESRIGHT HAND DRIVE COUNTRIES SECOND TIER CITIES

STORE, SERVICE CENTER AND SUPERCHARGER NETWORK EXPANSIONS

2014 -20152015-2016

I

Tesla Model S Available since

mid 2012 20,000 Expected Unit

sales per year Worlds first EV Sedan

21,000 DELIVERIESMARKET SHARE GAINS & PRODUCT EXTENSION

HIGHER VOLUME AT LOWER PRICE POINT S O U R C E :T ES L A 6

“ONLY A DESIRABLE CAR CAN ACHIVE SUCCESS.”

MEET THE KEY PEOPLE CO M PA N Y OV E RV I E W

CEO CTO CFO CHIEF DESIG

7

ELON MUSK JB STRAUBEL DEEPAK AHUJA FRANZ VON HOLZHAUSEN

SPACE X PAYPAL

SOLARCITY

INNOVATOR OF THE YEAR FORD, KINMATIC MAZDA. AUIDI. GM

“Revolutionary in every sense” ELON MUSK

EX GM-TOYOTA FACTORY AKA JUDO Economics

CO M PA N Y OV E RV I E W

8

CO M PA N Y OV E RV I E W

TESLA’S MISSION

A Clean Start

Where the company takes a Silicon Valley approach to constantly innovate

Committed to Electric

On the belief that their products should offer

the most efficient and sustainable path to the future

Build Around the Driver

on the belief that their products should offer the most efficient

and sustainable path to the future

Sparking the Revolution

to lead the way and be fun to drive.

9

10TESLA MODEL S

11INTERIOR

Buy or DO?CO M PA N Y OV E RV I E W

12

POSITIONING TESLA MOTORS INC

13

TESLA MARKET POSITIONINGP O S I T I O N I N G

Internal Combustion Hybrid Electric Plug-in Hybrid Pure Electric

Performance Vehicles ROADSTER

Premium Vehicles MODEL SMODEL X

Small Premium Vehicles GEN 3

Family Vehicles

Subcompact City Vehicles

S O U R C E :T ES L A 14

SERVICE CENTER GEOGRAPHICAL DISTRIBUTIONP O S I T I O N I N G

15

SUPERCHARGER NETWORKP O S I T I O N I N G

16

2013 -2015

ZERO RENT COST & ALMOST ZERO ELECTRICITY COST

MAGNET TO HIGH END CONSUMERS & FREE OF CHARGE

AVAILABLE MODELS AND SALESP O S I T I O N I N G

S O U R C E : H Y B R I D C A R .CO M

Existent PEV & PHEV ModelsOEM Model Type First Year on Market Sales to Date

Smart Fortwo Electric Drive BEV 2011 564

Tesla Roadster BEV 2008(N/A) 1650

Tesla Model S BEV 2012 12850

Toyota Rav4 EV BEV 2012 600

Toyata Prius Plug-in PHEV 2012 16963

BMW Active E BEV 2012(N/A) 969

BMW i3 BEV 2013 0

CODA coda sedan BEV 2012(N/A) 78

Detroit Electric SP:01 BEV 2013 0

Fiat 500e BEV 2013 0

Fisker Karma PHEV 2012 1800

Ford Focus Electric BEV 2011 1583

Ford C-max Energi BEV 2012 4856

Ford Fusion Energi BEV 2012 1584

GM Volt PHEV 2010 41050

GM Spark EV BEV 2013 27

Honda Fit EV BEV 2012 384

Honda Accord Plug-in Hybrid PHEV 2013 200

Mitsubishi I-MIEV BEV 2011 1390

NIssan Leaf BEV 2010 29332

Expected Market Entrants

OEM Model TypeFirst

Year on Market

Sales to Date

Audi A3 e-tron PHEV 2014 0

BMW i8 PHEV 2014 0

BYD e6 PHEV 2014 0

GM Cadillac Ev PHEV 2014 0

Mitsubishi Outlander PHEV PHEV 2014 0

Nissan Infinit LE BEV 2014 0

Porsche Panamera S E-Electric PHEV 2014 0

Tesla Model X BEV 2014 0

17

2013 Vehicle Expected Sales

Incr

ease

in S

ales

-0,3

0

0,3

0,6

0,9

1,2

Uni

tes

0

25000

50000

75000

100000

Gen

eral

Mot

ors

Chr

ysle

r

Tesl

a M

otor

s

Toyo

ta M

otor

Hon

da M

otor

Nis

san

Aud

i

Volk

swag

en

Mits

ubis

hi M

otor

Maz

da M

otor

Hyu

ndai

Mot

or

BMW

Mer

cede

s-Be

nz

Volv

o C

ars

Suba

ru

Kia

Mot

ors

Jag

uar

Pors

che

Oct 2012 Oct 2013 %Change

% 6 4 I N C R E AS E D S H A R E

S O U R C E : AU TO DATA 18

2013 INDUSTRY & TESLA GROWTHP O S I T I O N I N G

2013 Q1 Sales

01250250037505000

Model S S Class BMW 7 A8

1.4622.3383.0774.750

S O U R C E : C N N N E W S

S O U R C E : H Y B R I D C A R S .CO M

19

EXTERNAL ANALYSIS STEEPLED

TESLA MOTORS INC

20

PEV IN THE FUTUREP O S I T I O N I N G

S O U R C E : E l e c t r i c Ve h i c l e M a r ket Fo re c a s t s 21

Estimated Cost of EV Batteries

S O U R C E : E l e c t r i c Ve h i c l e M a r ket Fo re c a s t s

EIA Oil Scenerious

EV SALES TARGETSP O S I T I O N I N G

S O U R C E : B LO O M B E R G

22

MARKET SHARE EXPECTATIONSP O S I T I O N I N G

S O U R C E : B LO O M B E R G

23

STEEPLEDM AC R O FAC TO R S

1. SOCIAL FACTORS OIL Instability, Climate Change, Environmental issues

2. TECHNOLOGICAL FACTORS Battery Pack

5. POLITICAL FACTORS Tax Incentives, Energy Loans,

6. LEGAL FACTORS Carbon Credit Sales, Safety, Emission

3. ECONOMIC FACTORS Decreased Aluminium costs

7. ETHICAL FACTORS Environmentally Minded Consumers

8. DEMOGRAPHIC FACTORS Stagnant, or Negative Growth Rates,& Adoption Rates

4. ENVIRONMENTAL FACTORS Zero emission laws increase Tesla’s Profits

1

1

3

3

1

5

4

2.5Weighted Five Scale

Measurement(Max 5)

24

EXTERNAL ANALYSIS PORTER’S FIVE FORCES

TESLA MOTORS INC

25

“Industry structure drives competition and profitability, not whether an industry produces a product or service, is emerging or mature, high tech or low tech, regulated or unregulated.”

-Michael E. Porter, “The Five Competitive Forces That Shape Strategy” Harvard Business Review (2008)

PORTER’S FIVE FORCESE X T E R N A L A N A LYS I S

26

PORTER’S FIVE FORCES PEV LUXURY SEDAN

E X T E R N A L A N A LYS I S

Economies of Scale Network Externalities Access to Distribution

Raw Materials Technology and Knowhow

High Elasticity of Demand Observability of Prices

Industry Growth Concentration Switching Cost

Availability of Substitutes Price Value of Substitutes Price Elasticity of Demand

Close Complements Price Value of Complements

Elasticity Demand of Buyers Relationship Related Trans. Availability of Substitutes

Volume of Purchase Importance of Price

Supplier Concentration Few Input Substitutes

Relationship Specific Invest. Purchase Volume

Price Discrimination of Sup.

2.17

2.35

3.65

3.48 2.81

Weighted Five Scale Measurement

(Max 5)

27

Average 2,89

T h re a t o f E nt r a nt s

I nt e n s i t y o f E x i s t i n g R i va l r y

B a rg a i n i n g Powe r o f S u p p l i e r s B a rg a i n i n g Powe r o f B u ye r sT h re a t s o f S u b s t i t u t e s a n d Co m p l e m e nt s

PORTER’S FIVE FORCES GENERAL AUTOMOTIVE INDUSTRY

E X T E R N A L A N A LYS I S

Economies of Scale Network Externalities Retaliation, Toughness Reputation,Distribution

Access to Raw Materials

Sellers Concentration Significant Cost Differences

Differentiation Elasticity Loyalty

Availability of Substitutes Price Value of Substitutes Price Elasticity of Demand

Close Complements Price Value of Complements

Elasticity Demand of Buyers Relationship Related Trans. Availability of Substitutes

Volume of Purchase Importance of Price

Supplier Concentration Few Input Substitutes

Relationship Specific Invest. Purchase Volume

Price Discrimination of Sup.

4.10

4.47

4.38

2.14 3.53

Weighted Five Scale Measurement

(Max 5)

28

Average 3,72

T h re a t o f E nt r a nt s

I nt e n s i t y o f E x i s t i n g R i va l r y

B a rg a i n i n g Powe r o f S u p p l i e r s B a rg a i n i n g Powe r o f B u ye r sT h re a t s o f S u b s t i t u t e s a n d Co m p l e m e nt s

PORTER’S FIVE FORCES MODEL S IN LUXURY SEDAN INDUSTRY

E X T E R N A L A N A LYS I S

Economies of Scale in Producing PEVs, Government Protection with ZEV Credits and Energy Loans, Entry Barriers in Battery and Power-train Technology

No Direct Competition, Significant Signs of Growth in the PEV Market, Current Manufacturers or Possibly Start-ups Could Enter in the Future

Internal Combustion Engine Luxury Sedans, Internal Combustion Engine Vehicles, Public Transportation, High Oil Prices

Limited Market for PEV Luxury Sedans, Fragmented Social Class that can Afford the Model S, Customer Loyalty

In-house Protection of S Model Frame and Power-train, Contract with Panasonic for Automotive Lithium-ion Batteries, Finding Other Partners for Batteries

29

T h re a t o f E nt r a nt s

I nt e n s i t y o f E x i s t i n g R i va l r y

B a rg a i n i n g Powe r o f S u p p l i e r s B a rg a i n i n g Powe r o f B u ye r sT h re a t s o f S u b s t i t u t e s a n d Co m p l e m e nt s

PORTER’S FIVE FORCES MODEL S IN INDUSTRY

E X T E R N A L A N A LYS I S

Economies of Scale in Producing PEVs, Government Protection with ZEV Credits and Energy Loans, Entry Barriers in Battery and Power-train Technology

No Direct Competition, Significant Signs of Growth in the PEV Market, Current Manufacturers or Possibly Start-ups Could Enter in the Future

Internal Combustion Engine Luxury Sedans, Internal Combustion Engine Vehicles, Public Transportation, High Oil Prices

Limited Market for PEV Luxury Sedans, Fragmented Social Class that can Afford the Model S, Customer Loyalty

In-house Protection of S Model Frame and Power-train, Contract with Panasonic for Automotive Lithium-ion Batteries, Finding Other Partners for Batteries

30

T h re a t o f E nt r a nt s

I nt e n s i t y o f E x i s t i n g R i va l r y

B a rg a i n i n g Powe r o f S u p p l i e r s B a rg a i n i n g Powe r o f B u ye r sT h re a t s o f S u b s t i t u t e s a n d Co m p l e m e nt s

EXTERNAL TO INTERNALE X T E R N A L A N A LYS I S

31

MACRO ENVIRONMENT STEEPLED

TASK ENVIRONMENT PORTER’S FIVE FORCES

INTERNAL ENVIRONMENT CORE COMPETENCE ANALYSES

TESLA

INTERNAL ANALYSIS

TESLA MOTORS INC

32

TESLA’S CORE COMPETENCIESI N T E R N A L A N A LYS I S

Resources

S * Innovative technology * battery pack * Innovative Technology

* Differences, uniqueness * Technology

* User forum on Tesla website * CEO Musk

* Openness/  friendliness of the company /  CEO * Own sales distribution

W * R&D cost overwhelmed revenue

* Limited manufacturing scale

* Limited budget for marketing activities

* Recent technical issues

* Only available at Tesla own networks

* Limited distribution

Capabilities

S* Industry leader as battery

and electric engine technology

* Cutting edge manufacturing

* Create unique positive images * Word of mouth

* Awards * A lot of publicity of CEO

* Customer satisfaction * Exclusive services

W* Only making electric batteries and engines

* Share the information with partners

* Production delays * Technical issues * Only reaches to limited consumers

* Tesla is responsible for everything

*Limited external services

R&D MANUFACTURING MARKETING AFTER SALES

33

TESLA’S CORE COMPETENCIESI N T E R N A L A N A LYS I S

34

Generate Self-reinforcing Enthusiasm for

the Brand

Create and Utilize Cutting

Edge Technology Willing and Able to

Take Risks

TESLA’S CORE COMPETENCIES I N T E R N A L A N A LYS I S

Generate self-reinforcing

enthusiasm for the brand

Create and utilize cutting edge technology

Willing and able to take

risks

EXTENDABILITY COMPETITOR DIFFERENTIATION

$CONSUMER VALUE

T ES L A

35

CUSTOMER VALUE

New l y c a t e g o r i ze d p ro d u c t s Cu s t o m e r S e r v i ce Tesla Forum

Generate Self-reinforcing Enthusiasm for the Brand

EXTENDABILITY

P u b l i c i t y Loya l t y Potential Customers

COMPETITOR DIFFERENTIATION

T h e f i r s t E V S p o r t c a r, Lu x u r y S e d a n O w n d i s t r i b u t i o n n et wo r k C EO, E l o n M u s k

TESLA’S CORE COMPETENCIES I N T E R N A L A N A LYS I S

36

CUSTOMER VALUE

P i o n e e r s P E V S p o r t C a r a n d Lu x u r y S e d a n S a fe , Fu n D r i ve ex p e r i e n ce

EXTENDABILITY

Pa r t n e r s h i p w i t h Pa n a s o n i c o n b a t t e r y ce l l s O E M fo r D a i m l e r a n d Toyot a

COMPETITOR DIFFERENTIATION

P i o n e e r E V S p o r t c a r, Lu x u r y S e d a n Co m p et i t i ve p o s i t i o n i n t h e E V m a r ket

Create and Utilize Cutting Edge Technology

TESLA’S CORE COMPETENCIES I N T E R N A L A N A LYS I S

37

CUSTOMER VALUE

New l y c a t e g o r i s e d p ro d u c t s Pa r t n e r s h i p w i t h Pa n a s o n i c

EXTENDABILITY

P u b l i c i t y CEO Musk’s Capabilities to EV industry Wealth individuals to mass market

COMPETITOR DIFFERENTIATION

Ta ke c h a l l e n g e s t o c re a t e n ew va l u e s i n t h e i n d u s t r y

Willing and Able to Take Risks

TESLA’S CORE COMPETENCIES I N T E R N A L A N A LYS I S

38

Evaluation of Tesla’s Core Competence

TESLA MOTORS INC

39

EVALUATION OF CORE COMPETENCESR E M A R K S

Being “willing and able to take risks” allowed Tesla to find its position in the market, and more importantly, force others to take notice. Infrastructure investment shows this, and is supported by their vision.

“Generate self-reinforcing enthusiasm for the brand” has helped Tesla focus on R&D through better resource allocation. This overcomes limitations in the external environment related to potential substitutes and larger budgets of competitors.

Tesla’s use of “cutting edge technology from top to bottom” is a sign of commitment related to the values of Elon Musk and helps them succeed. “Unintended?” benefit of technological laws, Moore’s etc.

40

FUTURE CHALLENGES

TESLA MOTORS INC

41

FUTURE CHALLENGESF U T U R E

CHANGE AND RESISTANCE

Large firms are slowly adapting

Tesla’s sales platform has found

resistance

How does “buzz” apply to products

for the broader market?

42

43

40

80

120

160

200

Jan 10 Mar 13 Sep 13

Maximum 193,37

Battery Case Later

Stock Value On track for success

Decline/Failure to grow

Internal & External is correct; Tesla expands to the general market

Internal & External is incorrect; the larger environment turns

Stagnation Internal or External is incorrect; Tesla struggles

FUTURE CHALLENGESF U T U R E

Don’t underestimate the value of a vision1

Starting with a niche and expanding is viable2

Some external environments, despite initial assumptions, provide opportunities3

If you provide an exciting product, especially a premium product, consumers will generate buzz themselves

4

Products are quickly becoming more “technological”, and managers should account for this5

EVALUATION OF CORE COMPETENCESL ES S O N S

44

THANK

YOU

For your attention!

45