Tesla Case Analysis

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Tesla at current
Tesla right now has sold 10,500 cars in the first half of 2013 and is expected to sell more next year. Total revenues are 560 million and net income is more than 10 million dollars. These are numbers that will continue to grow to take up more and more market and BMW needs to fully understand how Tesla is now in this position. It is very important that BMW understands both from a strategic viewpoint and execution viewpoint, how to best counteract this sudden rise in a potentially dangerous rival. Once this strategic plan is carefully crafted, BMW will be in a better position to respond and position the company to maintain its footprint in the car industry.
The path to an award-winning EV
Tesla utilized their cost structure
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This is a company that wants to directly compete with BMW and continue to erode our market share. The Model S competes directly with the BMW5 model. While the BMW5 has lower costs, there are other categories that the Model S edges BMW out. The Model S has a faster 0-60 start, more horsepower, higher cargo capacity with seating, higher max cargo capacity, and a higher consumer rating just to name a few. BMW, of course, has a higher sales volume and higher total revenues. Between 2012 and 2013, Tesla made $413,256,000 in the former year and $966,931,000 in the latter year. This represents a 57.3% increase in revenues which for this industry is a large increase. BMW, to counteract this growing rival, needs to continue to use our powerful brand and economies of scale to our favor. The strategy will be to continue to appeal to our core constituency and build a BMW that is luxurious as well as affordable. It is also important to continue to modernize our plants to maximize profits. BMW will also have to reduce our raw materials to ensure the company does not have an oversupply of raw materials in the pipeline. Focusing on the hybrid market is also important for those consumers who may not buy a traditional car but who also may not want to buy a fully electric car now. Our brand is our most important asset and we must use it to reposition ourselves for the next chapter in our historic

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