1. Are Electric Vehicles (EVs) comparable to internal combustion engines (ICE) technology vehicles? Do EVs represent a disruptive technology?
The electric vehicle is a simple wiring project whereas, ICE cars looks like a big project with a fuel lines, exhaust pipes, coolant and a big engine. Obviously, there is a prominent future for EVs. Since, fuel prices are increasing and to control carbon emissions and pollution government encouraging EVs and providing subsidies. The strength of electric vehicle is all depends on its battery quality and how the system is controlling the car body parts. This technology is still young, and there is a lot more research need to be done. EV fuel could average 3.5 cents a mile, as compared to around 16 cents
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The reverse also is true: The weaker the five forces, the greater the industry’s profit potential—making the industry more attractive.
Threat of Entry: In electric cars manufacturing lithium-ion battery is primary product and manufacturing this is not easy and depended on other manufacturers. Panasonic is the leading manufacturer of lithium batteries and has co-opetition with Tesla and building Gigafactory. Also, Tesla intended to become the world’s largest lithium-ion battery manufacturer and has plans for sale to other electric car manufacturers. Since, the new entrant has to depend on Tesla the company will not affect and not easy to overcome to Tesla and also, entry required high capital, the threat of entry is low.
Power of Suppliers: Suppliers are powerful relative to the firms in the industry if there are only a few substitutes available for the products and services supplied. Though, lithium supplies are hugely available in the world. There is huge competition and demand for this product. Tesla has to acquire lithium mines for fulfilling its manufacturing supplies. Although, Toyota has plans to acquire mines and become world’s biggest supplier of lithium raw material, Panasonic must have lithium sources, the power of suppliers is
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Tesla cars have primarily two advanced technology one is batteries and second is software. Though, imitating software is easier it is hard to develop software to control entire car. If the resource is valuable, rare and costly to imitate then, the company has an internal strength and core competency. The combination of three attributes Valuable, Rare and Costly to Imitate has allowed Tesla to enjoy a competitive advantage. The continuous innovation is allowing Tesla gain a foothold in the
After 2020, though EV will be more popular compared to traditional vehicles, fiercer market competition can affect the growth of Tesla’s
Tesla Motors, Inc. is an American company that designs, manufactures, and sells electric cars and electric vehicle powertrain components. Tesla Motors first gained widespread attention by producing the Tesla Roadster, the first fully electric sports car. The company's second vehicle was the Model S, a fully electric luxury sedan. Tesla also manufactures and sells electric powertrain components, including lithium-ion battery packs, to automakers, including Daimler and Toyota. Tesla's CEO, Elon Musk, has said he envisions Tesla as an independent automaker, with the goal of eventually offering electric cars at a price affordable to the average consumer. Lithium- ion cell commoditization and high-end product strategy shield the company from significant interdependence and integration risk.
Tesla Motors holds a unique position in the automobile industry. When musk formulated his vision of Tesla Motors, he decided to defy the status quo and completely change the automobile industry. He noticed other automobile manufacturers were not producing electric cars as well as they could be produced, which led him to Tesla’s niche (Stringham, 2015, p. 87). According to Musk, “the single largest macro problem that humanity faces this century is solving the sustainable energy problem—that is, the sustainable production and
Imagine that you’re driving on an open highway in the middle of summer. All you see in front of you is asphalt for miles and miles. The windows are down and your favorite song comes on the radio. You’re behind the wheel of a Tesla Model S, the newest electric car that can go from zero to sixty miles per hour in 2.4 seconds. This will soon be the future of all motor vehicles. Electric cars are beginning to have colossal impacts on our society because of their energy efficiency, performance benefits, and the fact that they are less harmful to the environment. In the near future, electric cars will dominate the road and eventually the planet’s overall need for oil will decrease immensely.
The focus of Tesla Company is on a niche in the automotive industry, which is building and selling electric cars. To a company like General Motors, the electric cars line of business is considered a side business, hence it only needs to study the patterns of Tesla’s cars then build on of its kind that will take Tesla out of business (Debord, 2015).
The mission statement of Tesla Motors Inc. as pointed out by CEO Elon Musk himself, “To accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.” Says Musk. He later goes on to say that creating a cheap and energy efficient car first time around is nearly impossible, so they decided to go with a sports car the first time around, to target the high class to be energy efficient. Tesla’s plan for the future includes making more and more affordable energy-efficient
In the modern world of conducting business, any company that wishes to succeed must differentiate its products or services from others in the industry. Differentiation makes it possible for consumers to point out notable differences between one company’s products as compared to those of competitors. Differentiation helps companies build brand loyalty as the uniqueness keeps customers fixed on a particular product. BMW is one of the most popular automakers in the world today. It definitely uses differentiation as a strategy to beat off competition by building products that are innovative, detailed and incomparable to those of competitors.
In turn, demand will drive leads to the Tesla sales team (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Tesla will continue to build long-term brand awareness, in addition to continual management of corporate reputation (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Tesla Motors will expertly manage the existing customer base to create loyalty and increase customer referrals (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Additionally , Tesla Motors hopes to enable customer input into the product development process (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Corporate strategy.
Thesis Statement: The need to move away from oil dependency has sparked an interest in electric powered vehicles and as they become more affordable for the average person, they look to be like a great alternative.
I think gas powered vehicles are better because they function better when the weather gets cold. Cold weather hurts EV battery performance. When the outside heat falls below freezing, usable range drops to 20 miles or less making the EV practically unusable in cold weather climates (Peters, 3). We live in Alaska so the winters here are pretty much freezing or below so an EV here probably wouldn't be good in the wintertime. Also in the cold weather it makes the charging time a lot longer than it would've been if it were warm out.
For years, Tesla has struggled to achieve and maintain profitability, despite a soaring stock price in recent years. That profit level would suggest that Tesla as a company is still in the Introduction phase of its life cycle, even though they’ve been around for almost 15 years. On top of their longevity, Tesla has become increasingly relevant in the automotive industry, most likely aided by a societal shift in thinking about conservation, and leading technological advancements. We believe that Tesla exists in a unique space between the Introduction and Growth stages of the textbook-defined product life cycle. More profitable results in a foreign market like Japan may not require a drastic shift in distribution strategy, however. As we’ve covered,
In the 2003 Martin Eberhard, Marc Tarpenning, JB Straubel, Ian Wright, and most notably Elon Musk founded Tesla Motors. The “group of engineers in Silicon Valley wanted to prove that electric cars could be better than gasoline-powered cars” , and their efforts managed to disrupt the entire fabric of the automotive industry. The release of the Tesla Roadster, in 2008, was an innovative quake that introduced an alternative automotive technology for consumers to the widely accepted and well-established gasoline technology in the automotive industry. The Tesla Roadster was not only the first entirely electric sports car, but also “set a new standard for electric mobility” and luxury brand cars.
Electric powered vehicles are a good thing for the environment and your wallet because they do not have tailpipe emissions, they are cheaper to operate, and they reduce the amount of acid rain. Replacing the use of gasoline powered cars with electric powered ones will greatly decrease pollutants from carbon dioxide in the air which will help preserve our environment, especially from damages of acid rain, so the Earth will be a better place to live. Also, switching to an electric vehicle will help you save more and more money every year. It is commonly said that there are some strong negatives to them, but the fact that there will be guaranteed positives almost immediately after purchase eludes those consumers and others who dislike electric cars. Those who dislike electric powered cars also do not realize how easily negatives are being avoided. All in all, choosing an electric powered vehicle is the correct decision for the positive effects they have on the environment, society’s health, and personal economic
In an effort to encourage competition amongst rival companies in the auto-industry, in 2014 Tesla opened all its patents to its competitors to advance technological development, Tesla (2014). The company’s long term positioning in the auto-market involved opening stores and service centers, entered into partnerships, provided financing services and the construction of a leading charging infrastructure.
There is no doubt that electric cars are the most appealing from of transportation in the world. They provide two of the most important key points of good transportation: reliable and efficient. They are reliable due to their simplicity of their power trains and the advancement of technology they have. They are efficient because they don't use any gasoline and because their motors can pass the zero-emission standard. Even though they may seem like a boring form of transportation, they offer good features that help keep the Earth's air clean and they help reduce pollution.