Strategic Management

How Tesla Motors can manage the extreme competition from large and premium manufactures

Daniil Chaika (119102547)
Workshop Tutor: John Davison
SIM336 - Strategic Management

Contents
1.0 Introduction ……………………………………………………………………………….3
2.0 Company Background………………………………………………………………….….3
3.0 PESTEL Analysis……………………………………………………………...…………..3
3.1. Political……………………………………………………………………………..3-4
3.2. Economic……………………………………………………………………………...4
3.3. Social………………………………………………………………………………….4
3.4. Technological…………………………………………………………………………4
3.5. Environmental………………………………………………………………………...5
3.6. Legal…………………………………………………………………………………..5
4.0 Porter’s 5 Forces Analysis…………………………………………………………………5
4.1. The Threat from New Entrants……………………………………………………..5-6
4.2. The bargaining power of Buyers……………………………………………………...6
4.3. Threat of Substitution…………………………………………………………………6
4.4. The bargaining power of Suppliers…………………………………………………..6
4.5. The Intensity of Rivalry in the Industry……………………………………………6-7
5.0 Value Chain Analysis (VCA)……………………………………………………………...7
5.1. Primary Activities…………………………………………………………………..7-8
5.2. Support Activities…………………………………………………………………..8-9
6.0 SWOT Analysis……………………………………………………………………………9
6.1. Strengths…………………………………………………………………………..9-10
6.2. Weaknesses………………………………………………………………………10-11
6.3. Opportunities………………………………………………………………………...11
6.4. Threats……………………………………………………………………………….11
7.0 Bowman’s Strategy Clock …………………………………………………………...11-12
8.0 Conclusion……………………………………………………………………………12-13
9.0 Recommendations…………………………………………………………………….13-14
References
Appendixes

1.0 Introduction
The auto manufacturing market is very competitive, especially for alternative fuel vehicles that has become more popular with the rise of environmental concerns. This research will describe the electric vehicle manufacturing company, Tesla Motors, and how it can manage the extreme competition from large and premium manufactures.
The report starts from introduction of ‘Tesla Motors’ company. Next, the

References: Akpoyomare, O., Adeosun, L. and Ganiyu, R. (2012). Differentiation and Positioning Strategy: A Toss of the Same Coin. International Journal of Management and Sustainability, 1(2), pp.53--65. Autospies.com, (2014). Can You Judge A Person By The Type Of Car They Drive? - AutoSpies Auto News. [online] Available at: http://www.autospies.com/news/Can-You-Judge-A-Person-By-The-Type-Of-Car-They-Drive-27859/ [Accessed 6 April. 2014]. Baki, M., Copus, S., Green, M., Highfill, D., Smith, J. And Whineland, M. (2004) Automotive Industry Analysis - GM, DaimlerChrysler, Toyota, Ford, Honda, BBC News, (2014). Petrol price reaches record high. [online] Available at: http://www.bbc.co.uk/news/business-17490088 [Accessed 4 April. 2014]. Bowman, R. (2010). Tesla Motors: A Tale of Beauty and Pain. [online] Supplychainbrain.com. Available at: http://www.supplychainbrain.com/content/blogs/think-tank/blog/article/font-size2tesla-motors-a-tale-of-beauty-and-painfont/ [Accessed 4 April. 2014]. Brown, N. (2013). Daimler Wants Increased Cooperation With Tesla Motors. [online] CleanTechnica. Available at: http://cleantechnica.com/2013/11/07/daimler-wants-increased-cooperation-tesla-motors/ [Accessed 6 April. 2014]. Energy.gov, (2014). Loan Programs Office | Department of Energy. [online] Available at: http://energy.gov/lpo/loan-programs-office [Accessed 13 April. 2014]. Environmental-protection.org.uk, (2014). Car Pollution | Environmental Protection UK. [online] Available at: http://www.environmental-protection.org.uk/committees/air-quality/air-pollution-and-transport/car-pollution/ [Accessed 8 April. 2014]. Fuel-efficient-vehicles.org, (2008). TESLA Roadster | Fuel-Efficient-Vehicles.org. [online] Available at: http://fuel-efficient-vehicles.org/energy-news/?page_id=52 [Accessed 10 April. 2014]. Harryson, S. and Keller, S. (2014). Tesla Motors Case II: From Technology Start up to Commercialization Vehicle. CIEL. [online] Available at: http://ciel-lab.dk/wp-content/uploads/2013/04/Case_Tesla-Motors-Part-II.pdf [Accessed 1 April. 2014]. Haveit-eu.org, (2011). Driving without a Driver – Volkswagen presents the “Temporary Auto Pilot”. [online] Available at: http://www.haveit.eu.org/displayITM1.asp?ITMID=117&LANG=EN [Accessed 6 April. 2014]. Hill, C., Jones, G. and Schilling, M. (2014). Strategic management: Theory & Cases: An Integrated Approach. 11th ed., Cengage Learning Hill, C HybridCars.com, (2014). December 2013 Dashboard - HybridCars.com. [online] Available at: http://www.hybridcars.com/december-2013-dashboard/ [Accessed 16 April. 2014]. Insideevs.com, (2014). February 2014 Plug-In Electric Vehicle Sales Report Card | Inside EVs. [online] Available at: http://insideevs.com/february-2014-plug-in-electric-vehicle-sales-report-card/ [Accessed 3 April. 2014]. Kachaner, N., Lindgardt, Z. and Michael, D. (2011). Innovating low-cost business models. Emerald, [online] 39(2), pp.43-48. Available at: http://www.emeraldinsight.com/case_studies.htm/case_studies.htm?articleid=1911692&show=html [Accessed 3 April. 2014]. Liker, J. (2004). The Toyota way. New York: McGraw-Hill. MacKenzie, A. (2013). 2013 Motor Trend Car of the Year: Tesla Model S - Motor Trend. [online] Motor Trend Magazine. Available at: http://www.motortrend.com/oftheyear/car/1301_2013_motor_trend_car_of_the_year_tesla_model_s/ [Accessed 6 April. 2014]. Miller, D. (2012). Is the Tesla Model S the First Sexy Green Car?. [online] The Hollywood Reporter. Available at: http://www.hollywoodreporter.com/news/tesla-model-s-morgan-freeman-395593 [Accessed 20 April. 2014]. Ministry of Transportation, (2010) NASDAQ.com, (2014). TSLA Income Statement. [online] Available at: http://www.nasdaq.com/symbol/tsla/financials?query=income-statement [Accessed 4 April. 2014]. Pontes, J. (2014). EV Sales: Europe December 2013. [online] Ev-sales.blogspot.ca. Available at: http://www.ev-sales.blogspot.ca/2014/01/europe-december-2013.html [Accessed 6 April. 2014]. Reuters, (2014). America’s aging population undermines monetary policy. [online] Available at: http://blogs.reuters.com/great-debate/2013/09/24/americas-aging-population-undermines-monetary-policy/ [Accessed 6 April. 2014]. Reuters, (2013). Tesla outlook, deliveries fall short amid capacity constraints. [online] Available at: http://www.reuters.com/article/2013/11/06/us-autos-tesla-idUSBRE9A415E20131106 [Accessed 4 April. 2014]. Reuters.com, (2014). Tesla Motors Inc (TSLA.O) Company Profile | Reuters.com. [online] Available at: http://www.reuters.com/finance/stocks/companyProfile?symbol=TSLA.O [Accessed 10 April. 2014]. Tesla Motors, Inc., (2014). Form 10-K Annual Report. Palo Alto, California. [online] Available at: http://ir.teslamotors.com/secfiling.cfm?filingID=1193125-14-69681&CIK=1318605 [Accessed 2 April. 2014]. Tesla Motors, (2010). FORM 424B4. San Carlos: [online] Available at: http://ir.teslamotors.com/sec.cfm [Accessed 7 April. 2014] Tesla Motors, (2014) Thompson, J. and Martin, F. (2005). Strategic management. 3rd ed. London: Thomson Learning. Waters, D. (2003). Global Logistics & Distribution Planning. 2nd ed. London: Kogan Page. Welch, D. (2009). A Long Bet on Electric Cars. [online] Businessweek.com. Available at: http://www.businessweek.com/magazine/content/09_41/b4150031046560.htm [Accessed 6 April. 2014]. Wit, B. and Meyer, R. (2005). Strategy synthesis. 3rd ed. London: Thomson Learning. World Bank, (2014). Global Economy at Turning Point, Says World Bank. [online] Available at: http://www.worldbank.org/en/news/press-release/2014/01/14/global-economy-turning-point-world-bank [Accessed 3 April. 2014]. Witcher, B. and Chau, V. (2010). Strategic management. 1st ed. Andover: Cengage. Ypte.org.uk, (2014). Pollution :: Environmental Facts :: Young People 's Trust for the Environment. [online] Available at: http://www.ypte.org.uk/environmental/pollution/32 [Accessed 17 April. 2014].