Tesla: A Blue Ocean Marketing Strategy
BU.450.710.52 – Tesla’s Blue Ocean Strategy – Page 1
TESLA: A BLUE OCEAN MARKETING STRATEGY Matthew Gazda, Vanessa Granville, and Ryan Schupp Marketing Strategy BU.450.710.52 Johns Hopkins University May 8, 2014
BU.450.710.52 – Tesla’s Blue Ocean Strategy – Page 2
Executive Summary Tesla is an innovative electric car manufacturer that intends to overturn the current gaspowered vehicle industry. CEO Elon Musk has masterminded a product that will compete against and bypass its gaspowered counterparts in terms of performance, design, efficiency, reliability, and price. With its innovative rechargeable batteries, which are built using technology from Panasonic’s laptop batteries and are sourced by Toyota and DaimlerChrysler, and the success of its highend, $100K+ Roadster, Tesla has achieved margins that are funding the research and development of a midpriced electric vehicle, as well as a nationwide infrastructure of Supercharger stations that will eliminate the cost of fueling. Tesla’s current products include a luxury Model S sedan priced at $70K to $90K, and a small crossover SUV, the Model X, which is expected to debut in late 2014 for $100K. his midpriced ($35K to $40K) Third Generation, which will achieve 200 miles per charge, as well as the battery packs that will charge these products. The electric car market is limited, but growing. In 2013, it held 3.8 percent market share of the 15.5 million vehicles sold in the United States. Rising environmental awareness and concerns with climate may well overcome consumer concerns with price, performance, and styling, and Musk’s product addresses all of these. His goal is to develop an electriccar product that will sell for under $25K because a Navigant survey indicated that 71 percent of consumers name that as their purchasing ceiling (Klippenstein). US and Chinese government incentives will
further
TESLA: A BLUE OCEAN MARKETING STRATEGY Matthew Gazda, Vanessa Granville, and Ryan Schupp Marketing Strategy BU.450.710.52 Johns Hopkins University May 8, 2014
BU.450.710.52 – Tesla’s Blue Ocean Strategy – Page 2
Executive Summary Tesla is an innovative electric car manufacturer that intends to overturn the current gaspowered vehicle industry. CEO Elon Musk has masterminded a product that will compete against and bypass its gaspowered counterparts in terms of performance, design, efficiency, reliability, and price. With its innovative rechargeable batteries, which are built using technology from Panasonic’s laptop batteries and are sourced by Toyota and DaimlerChrysler, and the success of its highend, $100K+ Roadster, Tesla has achieved margins that are funding the research and development of a midpriced electric vehicle, as well as a nationwide infrastructure of Supercharger stations that will eliminate the cost of fueling. Tesla’s current products include a luxury Model S sedan priced at $70K to $90K, and a small crossover SUV, the Model X, which is expected to debut in late 2014 for $100K. his midpriced ($35K to $40K) Third Generation, which will achieve 200 miles per charge, as well as the battery packs that will charge these products. The electric car market is limited, but growing. In 2013, it held 3.8 percent market share of the 15.5 million vehicles sold in the United States. Rising environmental awareness and concerns with climate may well overcome consumer concerns with price, performance, and styling, and Musk’s product addresses all of these. His goal is to develop an electriccar product that will sell for under $25K because a Navigant survey indicated that 71 percent of consumers name that as their purchasing ceiling (Klippenstein). US and Chinese government incentives will
further
Cited: . Retrieved May 2, 2014 from: CNN Money. (2014). Tesla Model S: Consumer Reports ' Top Pick car. Davis, Joshua. (2010, September 27). How Elon Musk Turned Tesla into the Car Company of the LaMonica, Martin. (2009, September 21). Tesla Motors founders: Now there are five McKeegan, Noel. (2009, March 26).