Tesla In China Case Analysis

Improved Essays
Company B: Tesla
With the development of an economy, the global environment is facing the crisis of deterioration. Governments are also actively promoting energy conservation and reduction of the emission. Due to today's energy shortage, the development of the new energy vehicles becomes popular in the industry. Base on the market demand, Tesla produced the electric vehicles by the unique business model to achieve better results in the market and it began to expand in China after its home market was stable.
STEEP analysis for Tesla
Social The sense of environmental protection and high technology recognized by people. Tesla successfully attracted the attention of consumers, increased electric vehicles consumption.
Technological The advanced
…show more content…
Tesla believes the exclusive distribution model. The Tesla China team want to cooperate with Tmall to expend the electric business platform to try to sell the customized version of the Model S. However, the director Mr. Musk had pulled back the project, he believes that the marketing for Tesla's "only user word-of-mouth spread, not any paid delivery". As China government has a lot of plan for its mainland electric vehicles production, Tesla as the foreign company, want to set up in China, is better to have a local well-known platform to sell its products. As well as, the top management must empowerment to the local executives because they know more about the local …show more content…
The first thing they need to do is to tell customers what an electric car is, a so-called "primary concern," and then talk to customers about what a Tesla car is. This is because an electric vehicle is a new thing and even now not a lot of people are using the electric vehicles. The most customer just knows the name of the electric car but the consumers don't know really the about electric car's knowledge. Tesla must first cultivate consumer's perception of electric vehicles to let consumers understand, why so much for Tesla and what is the reason behind. There are no cars dealers are willing to spend so much effort to get consumers to know electric cars, which can only be done by the Tesla

Related Documents

  • Improved Essays

    Tesla Mission Statement

    • 1103 Words
    • 5 Pages

    Background on Tesla: Tesla is truly unlike any other company. Although many companies have taken up conservation through recycling and sustainable resourcing, Tesla has devoted themselves to providing sustainable products to provide clean, safe energy products for generations to come. According to CEO Elon Musk, the mission statement is “to accelerate the world’s transition to sustainable energy” (Tesla 2017). Focusing on renewable and sustainable energy, Telsa produces a wide arrange of products to propel modern society into a more energy friendly future.…

    • 1103 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    According to the annual report Tesla (2014), they rely on their relationship with Daimler and Toyota (Brown 0.2013). Partnership is very important to Tesla, because the supply of these companies make up a high percentage of the profits, and therefore, they cannot lose them, which makes high-strength considerably. However, they also sell their cars to individual customers, and many of the incentives offered by the government to give potential customers a tax credit deduction (Ministry Of Transportation, 2010). These programs stimulate demand of electric vehicles that make…

    • 1186 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Tesla addresses this objective through their research, which is done on a regular basis in the automotive market. Additionally, the company continues to improve its…

    • 936 Words
    • 4 Pages
    Great Essays
  • Great Essays

    Introduction General Motors (GM) is a Detroit based American automobiles manufacturer, and as of 2015 was the world’s 21st largest company as per Fortune 500. GM was founded by William Durant in 1908. Pursuing the strategy of “a car for every purse and purpose”, GM made a number of innovations to the automobile in the early 20th century. Later on, environmental concerns, increased oil prices, and foreign competition, forced GM to innovate further, bringing about engines that could run on unleaded petrol, cars with air-bags, and emission reducing technologies. Despite these improvements, however, GM’s position in the US market began to weaken with the introduction of cars made in Japan and Germany.…

    • 1657 Words
    • 7 Pages
    Great Essays
  • Superior Essays

    Objectives Of Tesla Motors

    • 1360 Words
    • 6 Pages

    Founded in 2003, Tesla is a relatively new company that has had a variety of problems with their solvency. Although they were able to survive due to their continuous investment from investors, (Brooke Crothers 2015, para 4) states that Tesla loses more than $4000, per Model S sold, which shows the difficulties of creating a cost efficient product in niche market. Additionally, Tesla’s survivability is explained by (Boris Marjanovic, 2016, para 4), that Tesla can only sustain itself for another six to eight months if they sustain their ‘cash position of $1.2 billion and an estimated monthly cash burn rate of $150 million’. Although these figures show, Tesla 's short term insolvency, due to big investments into their operations, it shows that it is difficult for businesses to simultaneously achieve their economic and environmental responsibilities. In conclusion, for all, for-profit businesses their early stages of operations are geared towards achieving their economic line before taking in considerations of their social and environmental…

    • 1360 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Corporate Level Strategy and Business-Level Strategy, Tesla Motors is a company that has known how to well penetrate in the car industry and in the market. According to Liu, Kang, Wu, Chen & Hon “Tesla is pursuing market penetration strategy and related constrained. Tesla intends to enhance their influence on the current markets with their current products. They also market their electric powertrain components to other automakers (2014).” Tesla is really focusing on working on market penetration and all related to it, so the company wants to penetrate in the market using their current products and offering tis product to other car companies.…

    • 722 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    The company has had both successful and unsuccessful when it came to developing and researching. It is at this stage where Tesla Motors and other companies find new ways to promote to different segments with its features and promotions. Tesla is known to produce eco-friendly electric cars and is considered to be one of the most dominant companies within that part of the market. The company is still testing out the waters for its automotives while at the same time developing and growing its brand and…

    • 1028 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Risk is something that all companies take on when trying to launch a new product. Why is risk such a large factor? Think about all the man hours, testing, research, consultants and other tangible assets that it takes to launch a new product. Tesla already has two fully electronic models that they currently offer. Tesla once launched a sports car model but stopped producing it after the determining that the Model S (sedan) sales were so much better than that of the sports edition.…

    • 1678 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    The company refuses to use car dealerships to sell cars. They have integrated vertically towards the customer and handle all sales and distribution operations internally. To accomplish this Tesla has designed a network of service centers, galleries, and showrooms around the country tailored towards maintaining a luxury market position, provide high levels of service to customers, and encourage or complete sales. The showrooms and service centers that Tesla has built are there to sell cars.…

    • 1053 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Tesla’s strategic decision is to make use of its proximity to the markets in terms of resources. Their marketing mix includes establishing global company owned stores and galleries in key locations in order to capitalize on sales and productivity and access to the target market. Tesla’s distribution strategy was also to sell vehicles directly and also to provide them with after sale service through their sales galleries and service centers.  Research and Development: Tesla is one of those companies that do not hesitate to invest on research and development. This is one of the company key strategic decision to constantly conduct research activities to test, develop, design and refine the company systems in order to ensure that they are producing top quality electric vehicles.…

    • 1161 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Electric Cars Essay

    • 755 Words
    • 4 Pages

    Introduction Obviously, the electric cars has become more and more popular in the world. Many people driving their electric car on the street. Many manufactures began to produce electric cars, because the gasoline-powered automobiles pollute the environment and the oil resources have almost dry up. The government were badly in need of the new power and clean cars to remission the environment and resources problems. With the development of technology the electric cars seemingly is the best substitute so far.…

    • 755 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Tesla Core Competencies

    • 1392 Words
    • 6 Pages

    has unique resources and core competencies which help the said organization achieve competitive advantage over other companies. According to Shahan (2015), Tesla’s huge competitive advantages are as follows: (i) the batter supply chain is building for itself; (ii) its wonderful supercharger network; (iii) its software is several leagues above the competition; (iv) it has a reputation of building superb products that amaze people; and (v) it has a want to serve customers in a direct and honest way. One unique resource of Tesla is its batteries. These batteries are routinely estimated to be a good tier cheaper than other EV batteries (Shahan 2015). The company constantly works to improve its batteries over time and the latter are valuable far beyond electric vehicles.…

    • 1392 Words
    • 6 Pages
    Superior Essays
  • Superior Essays

    This is complimented by their consumer focus in terms of their marketing strategy to align the company vision to that of its consumers. The business is very determined and has achieved what they have put their focus to. Tesla’s goals for within the next four years is to severely increase car…

    • 1833 Words
    • 8 Pages
    Superior Essays
  • Improved Essays

    They keep themselves in the news by always setting some sort of record or making bold claims, such as the most recent one that a Tesla Roadster will be sent into space as a part of Musk’s SpaceX program. This had social media buzzing with talks of a Tesla vehicle being sent into outer space. Also, they made headlines when they said they produced the first self-driving vehicle. And again, they were being talked about when the news first broke about the 2020 Roadster and all the records that it had broken such as the 0-60, 0-100, and it is set to become the fastest production model car. So, they consistently set new standards for motor vehicle world in the aspect of being environmentally friendly, having such advanced technology, and producing unprecedentedly fast and safe vehicles.…

    • 1080 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Tesla Target Market Essay

    • 1100 Words
    • 5 Pages

    Key Markets: The Market segment that has been targeted by Tesla in the first place was Sports premium electric cars with high-end Prices. Indeed, it was confirmed by launching the model Roadster as the First-Tesla product to be marketed. Soon the model S was launched to tackle the Sports premium sedan segment to capture more market share as well as lately the model X for the luxury SUV segment. The premium luxury automobiles industry takes up to 15% of the total automotive industry and with a high purchasing power among consumers.…

    • 1100 Words
    • 5 Pages
    Improved Essays