Tesla Vs. GEM (Global Electric Motorcars)

Decent Essays
Tesla vs GEM (Global Electric Motorcars)
Tesla, Inc. and GEM are two car companies that have developed disruptive innovations within the automotive industry, namely electric vehicles. This paper will compare both car companies, analyze their strategies and provide recommendations for future implementations on their strategies.
COMPANY OVERVIEW:
Tesla, Inc. and GEM (Global Electric Motorcars) compete against each other in the automotive space for their electric vehicles. Below is a brief overview of both companies:
Tesla was founded in 2003 in Silicon Valley with the intent to provide electric cars powered by batteries and a mission to increase sustainable transport. They created electric-powered vehicles as opposed to diesel or gas-powered
…show more content…
Some of these included finding locations to charge car batteries, cost and difficulty of replacing batteries every few years, range of batteries, and the time that it took to recharge car batteries. Tesla’s job to be done was to “help me buy a sustainable long-range car that functions like a gasoline-powered vehicle”. As Tesla tried to solve for these obstacles, Tesla rolled out thousands of “Supercharging” stations (similar to gas stations) so owners could plug-into one of these stations as they were on the road. Evidently, the automotive industry is a highly modular market. There are a few large companies who specialized in auto parts and supply the main automotive companies. Tesla has an interdependent architecture. They used a deliberate strategy to open their patents to the competitors and standardized their products. This was a very strategic and clever move because it made Tesla the leader amongst electric vehicles.
Later on, Tesla also released the new Model 3 car which was a “low-end disruption” because this new car targeted middle-income customers who were unable to afford their higher-end and expensive vehicles. This was yet another strategic move made by Tesla because they used a deliberate strategy to open up their target market and increase market
…show more content…
They are a low-end disruption because they are used in replacements of gasoline-vehicles. Although GEM cars are cheaper, they are profitable because they are modular and use cheaper materials manufactured by other vendors.
After looking at both Tesla and GEM through the disruptive lens, Tesla takes on a sustaining innovation while GEM is a low-end disruptor. In my opinion, the CEO of Tesla needs to focus on targeting middle-class consumers for their low-end disrupting products such as the Model 3. Most automotive consumers can afford within the price range of the Model 3, thus bringing in a higher revenue for Tesla. On the other hand, the CEO of Polaris should continue to target their low-income consumers and expand within this market. There are many consumers who cannot afford a gasoline-vehicle and GEM can

Recommendations:
1. Recommendations for a future course of action consistent with your analysis and use of the theories.(veryimportantsection~500–800words)Please consider the following:
• What do the theories suggest will happen in the future if the company continues down their currentpath?
• What course corrections (if any) do you recommend for this company?
• Do you see any implementation issues or

Related Documents

  • Decent Essays

    Tesla might not have enough funds to back up all its projects. Here are some key aspects of Teslas marketing mix and why it is effective. One would say that the key element of the marketing mix is their product or product development.Tesla has built its success on the manufacturing well engineered vehicles that function on electric batteries. Apart from this Tesla new technological advanced batteries are being sold at prices that are convenient for customers of all sought. Tesla has done most of sales online, but does quite a bit in stores too.…

    • 1713 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    White states in his article that " Scientific studies have proved that hybrid cars save energy" , which means that they are most likely economically friendly. Most people do not know how much energy hybrid cars save. White states in his article " In a survey of research on hybrid cars, researchers have reported that hybrid cars are made of lighter material, which makes them environmentally friendly" that means they have trouble when they are heavier than when they are lighter. Hybrid vehicles are an economically-friendly;…

    • 1066 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    2004). Buyers are losing confidence in gasoline and costs associated with the production, in an effort to help the environment. Moreover, undoubtedly people judge the current society "based on the type of car they own” (Autospies.com, 2008), and the idea of having electric vehicles improve the social status of the individual. Social change is another increase in the number of elderly people with the most wealth and savings, and who are likely to spend more money on premium electric vehicles (Reuters…

    • 1186 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    SUMMARY Today, after the launch of Model-S, TESLA gains the high amount of profit and get the strong position in the competitive environment under which TOYOTA, HONDA and others has already got a secure position. The roadster was the first product of TESLA, but it was not affordable prices. TESLA is using the EVs technology instead of an automobile oil system. Its products are environment friendly and save the travel cost. Because of use of modern technology TESLA has a big market only in developed countries.…

    • 1703 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Tesla Core Competencies

    • 1392 Words
    • 6 Pages

    Tesla Motors Inc. Formed as a legal corporation, Tesla Motors, Inc. was founded on July 1, 2003 which designs, produces, and sells vehicles which are empowered by the use of electricity, and not the usual vehicles which are gasoline-empowered (Reuters n.d.). The group of engineers in Silicon Valley who founded Tesla Motors, Inc. wanted to prove that electric cars are way better than cars which are powered by gasoline (Tesla 2015). The company further designs, produces, and sells components of electric vehicle power train to other manufacturers (Reuters n.d.). It is through the use of energy management technologies and manufacturing processes that those stationary energy storage products are produced (Reuters n.d.).…

    • 1392 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    At Tesla, we are best known for having a narrow margin of error in the production of our cars that run solely on electricity. With the use of our batteries, Tesla has cheaper, but higher quality batteries than any other electric vehicle. Not only are our batteries of lower cost than our competitors, but also the prices of the actual cars are lower in cost. Therefore, being a ‘luxury’ brand with lower prices is what draws our customers to buy from us instead of other car companies. We, at Tesla, have won over our customers by creating ‘Supercharge’ stations, where people who own a Tesla can charge our cars for free for about thirty minutes.…

    • 826 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    In a market where all 30 of the rated brands are readily available, with customers that often do research online before shopping, these rankings can make a big difference in company performance. While consumer reports provide a tool for consumers to use in making their determinations, they are not necessarily a measure of consumer opinion. Social media may provide a glimpse into the thoughts of consumers. In a global audience, thinking of American vehicles may conjure up the idea of American “muscle cars” from the 1960s, with their large engines and high fuel consumption built for performance through pure power. With rising gasoline prices and consumer demand for low emission vehicles, this may be a very difficult stereotype to dispel.…

    • 892 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Tesla Swot Analysis Essay

    • 875 Words
    • 4 Pages

    Furthermore, the vehicles with the internal combustion are affordable than Tesla products. The company’s revenues are restricted in the new market due to the high prices. Therefore, the global growth and expansions are the identified weakness that Tesla should…

    • 875 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Tesla Business Model

    • 1017 Words
    • 5 Pages

    Introduction of the Organization Incorporated in 2003 and named for genius, Nikola Tesla, who invented the AC induction motor used in the Tesla Roadster, Tesla, Inc. was the brainchild of Silicon Valley engineers. The founding partnership between Martin Eberhart and Marc Tarpenning expanded to include fellow engineer, Ian Wright and product designer, Malcolm Smith. Several rounds of significant capital funding began when Elon Musk provided the initial financial investment, and became the chairman of the board in 2014. The team “wanted to prove that people didn’t need to compromise to drive electric – that electric vehicles can be better, quicker, and more fun to drive than gasoline cars” (Tesla, Inc., 2017). Since 2003, Tesla Motors’ mission…

    • 1017 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    1. Who you are? Tesla Motors was founded in 2003 by a group of Silicon Valley engineers. In addition to the three electric car models -Roadster, Model S, Model x- that Tesla makes, it offers SuperCharger and BatterySwap services. The Model S is a four-door premium sedan with a range of 265 miles on a single charge. Designed from the ground up as an electric car, the Model S combines superior vehicle engineering with Tesla's advanced electric powertrain technology.…

    • 1312 Words
    • 6 Pages
    Decent Essays