tesla motors strategic management (presentation)
TRANSCRIPT
Team #8: John Espanol, Terence Ly, Naohisa Matsumoto, Mark Nagel BUS 690 [11]
Agenda • IntroducFon
• CompeFtors
• Internal Environmental Analysis – VRIO Framework – Resource-‐Based View – CapabiliFes – Core Competencies
• Strategic Analysis – Business Level Strategies
• InnovaFon & Strategic Entrepreneurship – Corporate Level Strategies
• Problems IdenFficaFon
• RecommendaFons
Introduction • Designs, manufacturers
and sells electric cars and electric vehicle powertrain components.
• Founded in 2003 by Elon Musk, MarFn Eberhard, Marc Tarpenning, JB Straubel and Ian Wright.
• Launched IPO on the NASDAQ stock exchange in June 2010 under the symbol TSLA.
Palo Alto, CA HQ
Introduction
• Gained widespread a^enFon a_er producing first fully electric sports car—the Tesla Roadster, in February 2008.
Introduction
• Followed up with the Model S (a fully electric luxury sedan in June 2012). – Received 2013 Motor Trend Car of the Year
Introduction
• Posted profits for the first Fme during the first quarter of 2013: – Shares skyrocketed to well over $100.
Competitors
Direct (All-‐Electric) Indirect (Hybrid Technology)
Nissan Leaf Toyota Prius
Ford Focus Electric Chevrolet Volt
Fiat 500e Chevrolet Malibu
Toyota RAV 4 EV Ford Fusion
Honda Fit EV Ford Escape
Honda Accord
Honda Civic
Internal Environmental Analysis
VRIO Framework V
(Valuable)
• Massive car manufacturers like Toyota and Daimler are buying the powertrain components from Tesla to use on their vehicles.
R (Rare)
• Tesla cars are the only ones that have a range of 300 miles on a single charge because of this parFcular powertrain technology.
I (Costly to Imitate)
• All big car manufacturers have created pure electric powered models but none can match the performance and efficiency of Tesla’s cars.
O (Organized to
Capture Value)
• Tesla consistently seeks product improvements through appreciaFng and exploiFng the many breakthrough innovaFons discovered among engineers, electricians, physicists, and business professionals.
• Tesla partners and contracts with numerous individuals and organizaFons to further research and develop improvements.
Resource-Based View Resources
-‐ Capital -‐ Land -‐ Buildings & offices -‐ Manufacturing plants -‐ Equipment -‐ Supplies -‐ Employees -‐ Dealerships -‐ Physical showrooms -‐ Service centers -‐ Electric charging staFons (Superchargers)
-‐ InnovaFve & experimental culture -‐ Knowledge -‐ R&D -‐ Brand value -‐ Virtual showrooms -‐ ReputaFon & awards -‐ Partnerships & alliances with automakers/scienFsts -‐ Intellectual Property Rights:
-‐ Patents -‐ Copyrights -‐ Trademarks -‐ Trade Secrets
Intangible Tangible
Capabilities
• Brand management • MarkeFng and sales
• Mass producFon – commercializing
• Electric Vehicle (EV) markeFng leadership
• Financial management
• Public relaFons • Powertrain developments
Core Competencies • A very low cost and efficient
single-‐speed gearbox mated with a conFnually improving motor—inverter and ba^ery.
• Powertrain technology: – Contracted most of the design
and manufacturing to other experts in order to focus more on improving powertrain technology.
• Licensing its drive propulsion technology and packaged ba^ery systems.
Tesla’s InnovaFve Powertrain
Model S Frame with Front & Rear Drivetrains
Strategic Analysis
Business Level Strategies • Focused DifferenFaFon:
– Focuses on value drivers rather than cost
• Uses intangible resources
• Vehicles runs on ba^ery power
• Tesla Motors will actually be bigger and faster than comparably-‐priced, electric cars.
Business Level Strategies • Offers high-‐energy charging staFons called Superchargers
• Tesla Rangers
• Licensing its ba^ery and powertrain technology
• Joined partnerships with Toyota and Germany’s Daimler AG.
Supercharger StaFon
Tesla Ranger
Innovation & Strategic Entrepreneurship • DisrupFve innovaFon:
– Using new technology to a^ack exisFng markets and controlling it.
• ImplemenFng product innovaFons instead of process since there are no relaFve compeFtors in Tesla’s niche market segment.
• Only electric car company offering in-‐home service and assistance to customers.
• Only company to build Superchargers exclusively for customers.
• Vehicles are not rivaled (selling cars that are bigger and faster than normal electric vehicles).
• Using advance technology to build long lasFng ba^eries that go 200 miles per charge.
Corporate Level Strategies • VerFcally integrated
• Performs some backward integraFon (i.e. selling of powertrains and other related components).
• High level of performance with a very narrow diversificaFon strategy.
• Dominant diversificaFon
• Geographic scope (mostly in the U.S. but seeking to enter the global market beginning with Europe, Asia and Australia).
• Forming partnerships and joint ventures (Ex. Toyota and Daimler AG).
• Holds high market share in a fast-‐growing market.
• Invest sufficient resources to hold posiFon and increase investments for future growth.
Problems Identification • Online sales: – Some states require a brick-‐and-‐mortar dealership
• Lacking sales presence in many states – Not able to feel or test drive before purchase – Difficult to ask quesFons
• Services: – Not enough charge staFons – Limited cerFfied technicians – Cost of maintenance – Not enough Rangers
Recommendations • Increase awareness:
– Open more stores – Provide demo cars for test
drives – MulFple city tours at once – Car shows and demonstraFons
• Promote convenience: – Charging staFons within every
50-‐100 miles radius – Standardize charging ports to
reduce cost – Increase number of cerFfied
technicians – Hire more Rangers
Build More Superchargers!
Increase DistribuFon Channels!
Questions?