Preview

Tesla Marketing Research Project

Powerful Essays
Open Document
Open Document
3520 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Tesla Marketing Research Project
Introduction
Tesla, an electric vehicle company founded in California in 2003, has been attracting a lot of attention worldwide. Tesla focuses not only on producing luxury electric vehicles—it prides itself on being a high-tech brand known for its innovation and creativity.

In and attempt to penetrate the Chinese market, Tesla unveiled its model S in 2013. Tesla initially expected Chinese consumers’ interest would be high and ambitious sales forecasts. However, Tesla’s entry into China has been far less successful than expected.

To investigate why Tesla is struggling in China we conducted a series of research. A brief introduction on Tesla’s background focusing on the current situation in the luxury car industry as well as pertinent policies provides necessary context to understand Tesla’s situation. Based on both the background information and current industry situation, a SWOT analysis of Tesla is completed to gain a more comprehensive understanding of the company. We then focus on market issues and try to understand why and how these issues are affecting Tesla. Current strategy is analyzed and we conclude with several strategic recommendations for Tesla.

Background
Electric vehicles are not a new concept for Chinese policy makers. Since 2001, electric vehicles have been implemented into China’s Five-Year Plans. Additionally, electric vehicles (EVs) were categorized as a “strategic emerging industry” in 2010. In order to push the emerging industry, the Chinese government introduced many supporting policies encouraging consumers to purchase EVs. For instance, Four central ministries released a plan promoting EV use between 2013 and 2015. The plan provided a national subsidy of RMB 35,000-60,000 for customers who purchased EVs.

The second way officials chose to stimulate EV purchase was tax exemptions. In September 2014, China’s State Council removed the 10 percent purchase tax on domestic-made EVs. However, because Tesla is made in the U.S., customers who



Cited: Baer, D. (2015, January 15). 5 reasons why Tesla is struggling in China. Business Insider. Retrieved from http://www.businessinsider.com/5-explanations-for-why-tesla-is-struggling-in-china-2015-1 Dana Hull Henry, X. (2014, April). ?PingWest???Tesla?????? | PingWest??. Retrieved from http://www.pingwest.com/the-chaos-of-tesla-china/ Kuo, L Li, J. (2015, February 17). Why Tesla continues to flop in China. Retrieved from http://www.forbes.com/sites/junhli/2015/02/17/why-tesla-continues-to-flop-in-china/ Nick Marro, Hengrui Liu, & Yu Yan Robinson, L. (2009, January 1). A summary of Diffusion of Innovations. Retrieved from http://www.enablingchange.com.au/Summary_Diffusion_Theory.pdf

You May Also Find These Documents Helpful

  • Powerful Essays

    Fuel efficient and eco-friendly vehicles are among the recent consumer trends within the automobile industry. The risk of new carmakers entering the marketplace is relatively low because of the high economic and political barriers that exist in this industry. A recent example of a company who has succeeded in entering the marketplace with a new product is Tesla Motors. The car company is still in its infancy; however, they have designed and delivered several all-electric vehicles to the marketplace using a platform they created.…

    • 1892 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    MIS 140 indiv

    • 258 Words
    • 1 Page

    In the article “The Making of Tesla”, published by Drake Bauer (Business Insider, Nov. 11, 2014). , the author talks about the success of Tesla and many major factor that came along different obstacles penetrating into the car industry as a fully electric-operated vehicle. Furthermore, the author also mentioned the issues within the Tesla vehicles that put the company in the real test of surviving against gargantuan American car manufacturers like Ford. Despite all the doubts and setbacks, Tesla Motors humiliated car analysts by being able to be a profitable electric car industry and develop different models for its vehicles like the Tesla Roadster while simultaneously beating its major competitors on market shares.…

    • 258 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    International Expansion: Tesla Motors is a renowned name in United States and has been very successful in the European markets especially Germany. However the company has huge potential and a huge market to cover in the Asian and the Canadian market and emerge itself as a leading company in automobile industry all across the globe.…

    • 961 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Marketing for Holden

    • 3458 Words
    • 14 Pages

    With more and more countries taking part in the international trade, the world’s market is expanding in a rapid pace. How to make use of the enlarging market and remain competitive become urgent for those participants. Market diversification is a good way to take full advantage of the resource and improve the efficiency by enlarging the business scope. In addition, it can also ease the pressure of competition and reduce the cost. The report mainly discuss that Australian Holden may enter Chinese market and chooses Shanghai as the target market. The report firstly analyzes the Australian and Chinese market and briefly introduces Shanghai. Then it presents the market-entry strategies and focuses on comparison on the advantages and disadvantages of Export-based entry and manufacturing-based entry. Through the comparison, the export-based entry is recommended to Holden. Finally, the report analyzes the 4p in marketing, which are price, place, products and promotion. In short, Shanghai is a bid developed country with the encouragement from the government to promote the development of automobile industry.…

    • 3458 Words
    • 14 Pages
    Better Essays
  • Good Essays

    Tesla Case Stydy

    • 915 Words
    • 4 Pages

    Tesla Motors is one of the leading producers of electric cars and electric powertrains in the world. Founded in 2003 and based out of Palo Alto, California, Tesla is currently in 37 countries worldwide. Tesla currently produces 3 models, the Roadster, Model S, and the Model X. A primary issue Tesla faces is the steep prices of all three models. The least expensive model is the Tesla model S. It’s cheapest option begins at $57,400. Many experts believe that for Tesla to be successful, they will need to produce a model closer to the $30,000 range. Other critics focus on the issue of a possible takeover, or the company’s lack of liquidity options. Lastly there is the issue of global expansions. Tesla hopes to increase their number of stores worldwide by 50 throughout the next several years creating an annual cost of roughly 5-10 million dollars. Although Tesla faces ever increasing pressure to develop a more inexpensive model, I personally believe this is not the correct option. Tesla Motors offers top end, luxury vehicles that provide the distinct advantage of electric power over Tesla competitors in an industry that is moving more and more in that direction. Tesla competes against top end, automakers such as Maserati, Jaguar, Aston Martin, and Porsche. All of these competitors are internationally renowned, high end, high brand recognition companies. To be successful I suggest, Tesla focuses on their continued international expansions and marketing to created a world-renowned, top class product that incorporates their primary strength of electrically powered vehicles.…

    • 915 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Tesla Final Paper

    • 1309 Words
    • 6 Pages

    Tesla’s mass-market ambitions on charge SummaryThis article discusses the different aspects of Tesla’s rise to prominence and the electric car manufacturer’s strategies for maintaining its status. This profile of Tesla’s roots and its prospects for the future touch on the following topics: niche market competition; financial obstacles in the past, present and future; and production techniques.I. Product DifferentiationIn this section, product differentiation, which is the process of distinguishing a product or service from others to make it more attractive to a particular target market, will be discussed. Since it first introduced the Model S to consumers in 2012, Tesla has been the premier producer of luxury…

    • 1309 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Tesla current target market is upper class, rich, affluent and green conscientious people looking to own an all electric sports car. But this is changing with each model produced. There are currently two models on the market and one in the process of production. The first car produced was the “Tesla Roadster” at a base price (€84,000), the second car produced was the “Tesla Model S” at a base price of (€47,000). Tesla motors are now building the “Tesla Model X” the price is still too be published, but what is guaranteed is that it will be a cheaper car then the “roadster and Model S”. With all Tesla vehicles you can add extras onto your car when you design it from the shop. Usually being extended battery life, interior, wheels, performance packages, these all are costly extras but not necessary either. With each new model the price is coming down and with that the companies target market range is expanding, with the goal of eventually having a low cost efficient electrical vehicle available at affordable prices to the public.…

    • 1219 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Elon Musk

    • 505 Words
    • 3 Pages

    In 2003 Elon founded Tesla Motors an electric car company. He went into this company with several different investors Martin Eberhard, Marc Tarpenning, Ian Wright, and JB Straubel. He personally invested 70 million dollars into Tesla Motors. With the other investors the combined investment is more than 180 million dollars. Elon became CEO of the company after a performance review replacing Ze'ev Drori. Elon said that Tesla needed to cut about 10 percent of the company’s workforce to reduce their burn rate in 2008. After becoming more efficient they introduced their first car an electric two seat sports car in 2009. Then they introduced the Model S an electric car in 2012. After that they introduced the Model X an electric suv on February 29, 2012 and will start production in 2013. Elon has…

    • 505 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Tesla Motors

    • 948 Words
    • 3 Pages

    Mora, Victor. "Is Tesla Motors an Attractive Investment?" Wall St. Cheat Sheet. Wall St Cheat Sheet, 21 Jan. 2014. Web. 13 Mar. 2014.…

    • 948 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Tesla Motors

    • 2705 Words
    • 9 Pages

    Tesla Motors remains in its primitive stages. Being a relatively young and emergent company, Tesla Motors focused on hiring fresh, emerging minds, and based the company in the innovative center, Silicon Valley, California. It is with these pioneering minds that Tesla hoped to create an explosion in the auto making industry, and that it did. They created a buzz in the market with their creative marketing and selling strategies, and impressive product design. Founder Elon Musk once said, “Failure is not an option here. If you’re failing, you’re not innovating enough.”…

    • 2705 Words
    • 9 Pages
    Better Essays
  • Better Essays

    Tesla Motors

    • 1695 Words
    • 7 Pages

    References: Bullis, K. (2012, February 6). Can Tesla Survive? MIT: Technology Review , pp. 1-2.…

    • 1695 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Elon Musk Accomplishments

    • 598 Words
    • 3 Pages

    With Tesla’s earnings, they wanted to make the world more reliant on renewable energy. With that goal in mind they created a gigafactory necessary in shifting the world to be more reliant on using renewable energy. The first step to fasten the Earth’s change into clean energy, is to produce enough electric cars to force the automobile industry to change. Cars are one of the biggest causes of global warming, so eliminating that factor will help our problem global of warming. With only 10 of these gigafactories Tesla can provide the whole world with sustainable energy. Which will stop global warming before it’s too late. There is a big benefit in switching to renewable energy, it’s clean, it’ll stop global warming, and once the world shifts to a sustainable energy, it’ll be cheaper or even free to power your…

    • 598 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Tesla Motors, Inc. was founded in early 2003 by a group of Silicon Valley engineers, incorporated in Delaware on July 1 of the same year, and is now headquartered in Palo Alto, California (“Tesla- Investor”). The company designs, develops and manufactures electric vehicles and electric vehicle powertrain components. Tesla also provides the same services and powertrain components to other manufacturers of electric vehicles (Analysts Corner 2). Tesla Motors is best known for producing the Tesla Roadster, an all electric sports car released in 2008, with outstanding performance results (“About Tesla”). Tesla has developed a unique marketing plan…

    • 2268 Words
    • 10 Pages
    Good Essays
  • Good Essays

    Tesla Motors

    • 522 Words
    • 3 Pages

    Even if that were not the case, it would still be a struggle for Tesla and electric cars to assume market dominance. The oil and gas Lobby will fight tooth and nail to make sure that the electric infrastructure is implemented as slowly as humanly possible, while steal being…

    • 522 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Electric cars, although now commonly associated with the Tesla brand, have in actuality been around for more than 100 years and have since then risen and fallen in popularity and efficiency. The electric vehicle was created initially to replace the inefficient steam and gasoline-powered vehicles of the 20th century, however, as the years progressed and the dangers of global warming and greenhouse gas became more evident, the purpose of the electric car transitioned into providing a better alternative to gasoline vehicles in order to help preserve the Earth for generations to come. From innovators in Europe and the United States toying around with the idea of using batteries to power vehicles to the renewable energy giant, Tesla, creating a…

    • 1410 Words
    • 6 Pages
    Good Essays