tesla motors
TRANSCRIPT
PRESENTATION FLOWAG E N DA
2INTRODUCTION
3COMPANY OVERVIEW
5STEEPLED
4POSITIONING
6PORTER’S FIVE
FORCES
7INTERNAL ANALYSIS
8TESLA’S CORE COMPETENCE
1RESEARCH
TOPIC
9LESSONS
10FUTURE
CHALLENGES
RESEARCH TOPIC
TESLA MOTORS INC
How d o e s Te s l a ’s co re co m p et e n c i e s a n d ot h e r i nt e r n a l f a c t o r s a f fe c t i t ’s s u cce s s i n i t s ex t e r n a l e nv i ro n m e nt ?
3
INTRODUCTIONA N A LYS I S
12850“to accelerate the advent of sustainable
transport by bringing compelling mass market electric cars to
market as soon as possible”
31Different Countries Mainly US, Japan,
Norway
64%I n c re a s e d i t s m a r ket s h a re
2002Founded in Silicon Valley by Elon Musk, Marc Tarpenning, and Martin Eberhard
$52400“Motor Trend Car
of the Year Award”. 4.2 Sec to 100 KM/h
5 Star Safety 30 Min Charging 8 Year Warranty
300M (482 KM) Range
Units Soldin 2013
2,964 Employees 760 % Improvement
4
TESLA PRODUCT ROADMAPCO M PA N Y OV E RV I E W
I
Founded in 2003 By Martin Eberhard, Marc Tarperinning
I
Elon Musk Joined With Series A Investment
in February 2004
I
Tesla Roadster Shipping since 2008
sold over 1,800 in over 300 countries
Over 13 million miles driven
I
Tesla Roadster Shipping since 2008
sold over 1,800 in over 300 countries Over 13 million miles driven
2013 VEHICLEM
ARKETING
20 KWh EU VERSION APAC VERSIONMODEL X RIGHT HANDED DRIVE, ALL WHEEL DRIVETHIRD GENERATION
EU & ASIA MARKETING LAUNCHESRIGHT HAND DRIVE COUNTRIES SECOND TIER CITIES
STORE, SERVICE CENTER AND SUPERCHARGER NETWORK EXPANSIONS
2014 -20152015-2016
I
Tesla Model S Available since
mid 2012 20,000 Expected Unit
sales per year Worlds first EV Sedan
21,000 DELIVERIESMARKET SHARE GAINS & PRODUCT EXTENSION
HIGHER VOLUME AT LOWER PRICE POINT S O U R C E :T ES L A 6
“ONLY A DESIRABLE CAR CAN ACHIVE SUCCESS.”
MEET THE KEY PEOPLE CO M PA N Y OV E RV I E W
CEO CTO CFO CHIEF DESIG
7
ELON MUSK JB STRAUBEL DEEPAK AHUJA FRANZ VON HOLZHAUSEN
SPACE X PAYPAL
SOLARCITY
INNOVATOR OF THE YEAR FORD, KINMATIC MAZDA. AUIDI. GM
“Revolutionary in every sense” ELON MUSK
CO M PA N Y OV E RV I E W
TESLA’S MISSION
A Clean Start
Where the company takes a Silicon Valley approach to constantly innovate
Committed to Electric
On the belief that their products should offer
the most efficient and sustainable path to the future
Build Around the Driver
on the belief that their products should offer the most efficient
and sustainable path to the future
Sparking the Revolution
to lead the way and be fun to drive.
9
TESLA MARKET POSITIONINGP O S I T I O N I N G
Internal Combustion Hybrid Electric Plug-in Hybrid Pure Electric
Performance Vehicles ROADSTER
Premium Vehicles MODEL SMODEL X
Small Premium Vehicles GEN 3
Family Vehicles
Subcompact City Vehicles
S O U R C E :T ES L A 14
SUPERCHARGER NETWORKP O S I T I O N I N G
16
2013 -2015
ZERO RENT COST & ALMOST ZERO ELECTRICITY COST
MAGNET TO HIGH END CONSUMERS & FREE OF CHARGE
AVAILABLE MODELS AND SALESP O S I T I O N I N G
S O U R C E : H Y B R I D C A R .CO M
Existent PEV & PHEV ModelsOEM Model Type First Year on Market Sales to Date
Smart Fortwo Electric Drive BEV 2011 564
Tesla Roadster BEV 2008(N/A) 1650
Tesla Model S BEV 2012 12850
Toyota Rav4 EV BEV 2012 600
Toyata Prius Plug-in PHEV 2012 16963
BMW Active E BEV 2012(N/A) 969
BMW i3 BEV 2013 0
CODA coda sedan BEV 2012(N/A) 78
Detroit Electric SP:01 BEV 2013 0
Fiat 500e BEV 2013 0
Fisker Karma PHEV 2012 1800
Ford Focus Electric BEV 2011 1583
Ford C-max Energi BEV 2012 4856
Ford Fusion Energi BEV 2012 1584
GM Volt PHEV 2010 41050
GM Spark EV BEV 2013 27
Honda Fit EV BEV 2012 384
Honda Accord Plug-in Hybrid PHEV 2013 200
Mitsubishi I-MIEV BEV 2011 1390
NIssan Leaf BEV 2010 29332
Expected Market Entrants
OEM Model TypeFirst
Year on Market
Sales to Date
Audi A3 e-tron PHEV 2014 0
BMW i8 PHEV 2014 0
BYD e6 PHEV 2014 0
GM Cadillac Ev PHEV 2014 0
Mitsubishi Outlander PHEV PHEV 2014 0
Nissan Infinit LE BEV 2014 0
Porsche Panamera S E-Electric PHEV 2014 0
Tesla Model X BEV 2014 0
17
2013 Vehicle Expected Sales
Incr
ease
in S
ales
-0,3
0
0,3
0,6
0,9
1,2
Uni
tes
0
25000
50000
75000
100000
Gen
eral
Mot
ors
Chr
ysle
r
Tesl
a M
otor
s
Toyo
ta M
otor
Hon
da M
otor
Nis
san
Aud
i
Volk
swag
en
Mits
ubis
hi M
otor
Maz
da M
otor
Hyu
ndai
Mot
or
BMW
Mer
cede
s-Be
nz
Volv
o C
ars
Suba
ru
Kia
Mot
ors
Jag
uar
Pors
che
Oct 2012 Oct 2013 %Change
% 6 4 I N C R E AS E D S H A R E
S O U R C E : AU TO DATA 18
2013 INDUSTRY & TESLA GROWTHP O S I T I O N I N G
2013 Q1 Sales
01250250037505000
Model S S Class BMW 7 A8
1.4622.3383.0774.750
S O U R C E : C N N N E W S
S O U R C E : H Y B R I D C A R S .CO M
19
PEV IN THE FUTUREP O S I T I O N I N G
S O U R C E : E l e c t r i c Ve h i c l e M a r ket Fo re c a s t s 21
Estimated Cost of EV Batteries
S O U R C E : E l e c t r i c Ve h i c l e M a r ket Fo re c a s t s
EIA Oil Scenerious
STEEPLEDM AC R O FAC TO R S
1. SOCIAL FACTORS OIL Instability, Climate Change, Environmental issues
2. TECHNOLOGICAL FACTORS Battery Pack
5. POLITICAL FACTORS Tax Incentives, Energy Loans,
6. LEGAL FACTORS Carbon Credit Sales, Safety, Emission
3. ECONOMIC FACTORS Decreased Aluminium costs
7. ETHICAL FACTORS Environmentally Minded Consumers
8. DEMOGRAPHIC FACTORS Stagnant, or Negative Growth Rates,& Adoption Rates
4. ENVIRONMENTAL FACTORS Zero emission laws increase Tesla’s Profits
1
1
3
3
1
5
4
2.5Weighted Five Scale
Measurement(Max 5)
24
“Industry structure drives competition and profitability, not whether an industry produces a product or service, is emerging or mature, high tech or low tech, regulated or unregulated.”
-Michael E. Porter, “The Five Competitive Forces That Shape Strategy” Harvard Business Review (2008)
PORTER’S FIVE FORCESE X T E R N A L A N A LYS I S
26
PORTER’S FIVE FORCES PEV LUXURY SEDAN
E X T E R N A L A N A LYS I S
Economies of Scale Network Externalities Access to Distribution
Raw Materials Technology and Knowhow
High Elasticity of Demand Observability of Prices
Industry Growth Concentration Switching Cost
Availability of Substitutes Price Value of Substitutes Price Elasticity of Demand
Close Complements Price Value of Complements
Elasticity Demand of Buyers Relationship Related Trans. Availability of Substitutes
Volume of Purchase Importance of Price
Supplier Concentration Few Input Substitutes
Relationship Specific Invest. Purchase Volume
Price Discrimination of Sup.
2.17
2.35
3.65
3.48 2.81
Weighted Five Scale Measurement
(Max 5)
27
Average 2,89
T h re a t o f E nt r a nt s
I nt e n s i t y o f E x i s t i n g R i va l r y
B a rg a i n i n g Powe r o f S u p p l i e r s B a rg a i n i n g Powe r o f B u ye r sT h re a t s o f S u b s t i t u t e s a n d Co m p l e m e nt s
PORTER’S FIVE FORCES GENERAL AUTOMOTIVE INDUSTRY
E X T E R N A L A N A LYS I S
Economies of Scale Network Externalities Retaliation, Toughness Reputation,Distribution
Access to Raw Materials
Sellers Concentration Significant Cost Differences
Differentiation Elasticity Loyalty
Availability of Substitutes Price Value of Substitutes Price Elasticity of Demand
Close Complements Price Value of Complements
Elasticity Demand of Buyers Relationship Related Trans. Availability of Substitutes
Volume of Purchase Importance of Price
Supplier Concentration Few Input Substitutes
Relationship Specific Invest. Purchase Volume
Price Discrimination of Sup.
4.10
4.47
4.38
2.14 3.53
Weighted Five Scale Measurement
(Max 5)
28
Average 3,72
T h re a t o f E nt r a nt s
I nt e n s i t y o f E x i s t i n g R i va l r y
B a rg a i n i n g Powe r o f S u p p l i e r s B a rg a i n i n g Powe r o f B u ye r sT h re a t s o f S u b s t i t u t e s a n d Co m p l e m e nt s
PORTER’S FIVE FORCES MODEL S IN LUXURY SEDAN INDUSTRY
E X T E R N A L A N A LYS I S
Economies of Scale in Producing PEVs, Government Protection with ZEV Credits and Energy Loans, Entry Barriers in Battery and Power-train Technology
No Direct Competition, Significant Signs of Growth in the PEV Market, Current Manufacturers or Possibly Start-ups Could Enter in the Future
Internal Combustion Engine Luxury Sedans, Internal Combustion Engine Vehicles, Public Transportation, High Oil Prices
Limited Market for PEV Luxury Sedans, Fragmented Social Class that can Afford the Model S, Customer Loyalty
In-house Protection of S Model Frame and Power-train, Contract with Panasonic for Automotive Lithium-ion Batteries, Finding Other Partners for Batteries
29
T h re a t o f E nt r a nt s
I nt e n s i t y o f E x i s t i n g R i va l r y
B a rg a i n i n g Powe r o f S u p p l i e r s B a rg a i n i n g Powe r o f B u ye r sT h re a t s o f S u b s t i t u t e s a n d Co m p l e m e nt s
PORTER’S FIVE FORCES MODEL S IN INDUSTRY
E X T E R N A L A N A LYS I S
Economies of Scale in Producing PEVs, Government Protection with ZEV Credits and Energy Loans, Entry Barriers in Battery and Power-train Technology
No Direct Competition, Significant Signs of Growth in the PEV Market, Current Manufacturers or Possibly Start-ups Could Enter in the Future
Internal Combustion Engine Luxury Sedans, Internal Combustion Engine Vehicles, Public Transportation, High Oil Prices
Limited Market for PEV Luxury Sedans, Fragmented Social Class that can Afford the Model S, Customer Loyalty
In-house Protection of S Model Frame and Power-train, Contract with Panasonic for Automotive Lithium-ion Batteries, Finding Other Partners for Batteries
30
T h re a t o f E nt r a nt s
I nt e n s i t y o f E x i s t i n g R i va l r y
B a rg a i n i n g Powe r o f S u p p l i e r s B a rg a i n i n g Powe r o f B u ye r sT h re a t s o f S u b s t i t u t e s a n d Co m p l e m e nt s
EXTERNAL TO INTERNALE X T E R N A L A N A LYS I S
31
MACRO ENVIRONMENT STEEPLED
TASK ENVIRONMENT PORTER’S FIVE FORCES
INTERNAL ENVIRONMENT CORE COMPETENCE ANALYSES
TESLA
TESLA’S CORE COMPETENCIESI N T E R N A L A N A LYS I S
Resources
S * Innovative technology * battery pack * Innovative Technology
* Differences, uniqueness * Technology
* User forum on Tesla website * CEO Musk
* Openness/ friendliness of the company / CEO * Own sales distribution
W * R&D cost overwhelmed revenue
* Limited manufacturing scale
* Limited budget for marketing activities
* Recent technical issues
* Only available at Tesla own networks
* Limited distribution
Capabilities
S* Industry leader as battery
and electric engine technology
* Cutting edge manufacturing
* Create unique positive images * Word of mouth
* Awards * A lot of publicity of CEO
* Customer satisfaction * Exclusive services
W* Only making electric batteries and engines
* Share the information with partners
* Production delays * Technical issues * Only reaches to limited consumers
* Tesla is responsible for everything
*Limited external services
R&D MANUFACTURING MARKETING AFTER SALES
33
TESLA’S CORE COMPETENCIESI N T E R N A L A N A LYS I S
34
Generate Self-reinforcing Enthusiasm for
the Brand
Create and Utilize Cutting
Edge Technology Willing and Able to
Take Risks
TESLA’S CORE COMPETENCIES I N T E R N A L A N A LYS I S
Generate self-reinforcing
enthusiasm for the brand
Create and utilize cutting edge technology
Willing and able to take
risks
EXTENDABILITY COMPETITOR DIFFERENTIATION
$CONSUMER VALUE
T ES L A
35
CUSTOMER VALUE
New l y c a t e g o r i ze d p ro d u c t s Cu s t o m e r S e r v i ce Tesla Forum
Generate Self-reinforcing Enthusiasm for the Brand
EXTENDABILITY
P u b l i c i t y Loya l t y Potential Customers
COMPETITOR DIFFERENTIATION
T h e f i r s t E V S p o r t c a r, Lu x u r y S e d a n O w n d i s t r i b u t i o n n et wo r k C EO, E l o n M u s k
TESLA’S CORE COMPETENCIES I N T E R N A L A N A LYS I S
36
CUSTOMER VALUE
P i o n e e r s P E V S p o r t C a r a n d Lu x u r y S e d a n S a fe , Fu n D r i ve ex p e r i e n ce
EXTENDABILITY
Pa r t n e r s h i p w i t h Pa n a s o n i c o n b a t t e r y ce l l s O E M fo r D a i m l e r a n d Toyot a
COMPETITOR DIFFERENTIATION
P i o n e e r E V S p o r t c a r, Lu x u r y S e d a n Co m p et i t i ve p o s i t i o n i n t h e E V m a r ket
Create and Utilize Cutting Edge Technology
TESLA’S CORE COMPETENCIES I N T E R N A L A N A LYS I S
37
CUSTOMER VALUE
New l y c a t e g o r i s e d p ro d u c t s Pa r t n e r s h i p w i t h Pa n a s o n i c
EXTENDABILITY
P u b l i c i t y CEO Musk’s Capabilities to EV industry Wealth individuals to mass market
COMPETITOR DIFFERENTIATION
Ta ke c h a l l e n g e s t o c re a t e n ew va l u e s i n t h e i n d u s t r y
Willing and Able to Take Risks
TESLA’S CORE COMPETENCIES I N T E R N A L A N A LYS I S
38
EVALUATION OF CORE COMPETENCESR E M A R K S
Being “willing and able to take risks” allowed Tesla to find its position in the market, and more importantly, force others to take notice. Infrastructure investment shows this, and is supported by their vision.
“Generate self-reinforcing enthusiasm for the brand” has helped Tesla focus on R&D through better resource allocation. This overcomes limitations in the external environment related to potential substitutes and larger budgets of competitors.
Tesla’s use of “cutting edge technology from top to bottom” is a sign of commitment related to the values of Elon Musk and helps them succeed. “Unintended?” benefit of technological laws, Moore’s etc.
40
FUTURE CHALLENGESF U T U R E
CHANGE AND RESISTANCE
Large firms are slowly adapting
Tesla’s sales platform has found
resistance
How does “buzz” apply to products
for the broader market?
42
43
40
80
120
160
200
Jan 10 Mar 13 Sep 13
Maximum 193,37
Battery Case Later
Stock Value On track for success
Decline/Failure to grow
Internal & External is correct; Tesla expands to the general market
Internal & External is incorrect; the larger environment turns
Stagnation Internal or External is incorrect; Tesla struggles
FUTURE CHALLENGESF U T U R E
Don’t underestimate the value of a vision1
Starting with a niche and expanding is viable2
Some external environments, despite initial assumptions, provide opportunities3
If you provide an exciting product, especially a premium product, consumers will generate buzz themselves
4
Products are quickly becoming more “technological”, and managers should account for this5
EVALUATION OF CORE COMPETENCESL ES S O N S
44