StudentShare solutions
Triangle menu

Competitor analysis on Tesla - Assignment Example

Extract of sample
Competitor analysis on Tesla

The escalating costs of fuel and the environmental hazards of emissions make electric vehicles (EVs) the best viable option in the present times. As such, a major share of consumers will prefer EVs such as Tesla, which provide them economy in maintenance and comfort while being environmental friendly and, hence, this segment will be Tesla’s target market. With their entry into the “family sedan market” Tesla will be able to diversify their customer segmentation and include more consumers in their customer base (Binkiewicz et al, 2008, p.2). Recently, Tesla is focusing its attention for direct investment in markets like India, which will provide them great opportunities for market expansion. India is fast becoming an economic power and many of its citizens have high rates of disposable income. Thus, it is a potential market for Tesla, especially because environmental safety is a primary concern of this country. Obviously, by targeting major cities, populated by wealthy people, Tesla can be “better positioned to expand” its operations into this international market (Gonzalez et al, 2010, p.17). In this context, Tesla’s Model S enjoys an edge over its competitors as they are more efficient. Research conducted by Danielle Boyke et al (2010) provides a comparative data of EVs, which indicates that Tesla’s Model S, with energy densities between 42kWh to 90kWh will give a mileage/charge of 160 – 300, while Audi’s energy density of 42kWh provides a mileage of 154 miles/charge. Thus, the average consumer will prefer Tesla’s EVs over hybrids as these are less expensive both in terms initial investment as well as maintenance. Luxury car consumers, who come from the influential and educated segment of the society, are highly conscious of the dangers of carbon emission besides having an appreciation of sleek designs. Tesla’s aesthetic design and environmental friendliness are crucial elements that make it a hot favorite among this target audience. Customer Segment Needs: The likely consumers of Tesla’s products look for economically viable options that can offer them comfortable luxury cars at lower running and maintenance costs. Thus, Tesla’s cars will become potential favorites in countries where fuel costs are higher. Besides, customers in the present day look for environmental friendly cars as governments across the globe place heavy restrictions on vehicles that cause excessive emissions. Another aspect that customers look for in a car is its design and appeal. Since Tesla’s cars provide good mileage to vehicles on a single charging, they will find the favor of customers. Competitors: For Tesla Roadster the main competitors are Porsche and Ferrari and once they launch the Model S Sedan, they will have to compete against existing and future players in the field that include major automobile manufacturers such as Audi, BMW, Lexus, Mercedes, Toyota, Ford, Honda etc. They are currently planning, in collaboration with Toyota, to develop an electronic version of the RAV4. The competition will not be a deterrent for Tesla because of several reasons. Primarily, they have a sound technology and efficient team of engineers that can create quality products with good designs. Besides, other major players in the industry mostly focus their attention of fuel run vehicles, which is not going affect Tesla’s operation in any big way. Countries across the globe are currently focusing on environmental friendly vehicles, which is a great advantage for Tesla when it concerns its operations in countries where fuel prices are high. Pricing: Tesla’s average price of their latest model “range from $50,000 – 70,000” and it appears a competitive price when considering the cost of other cars such as “Audi and BMW EVs and non-EVs” (Boyke, 2010, p.10). Similarly, their current strategy of competing in the luxury car market as well as international market with Model S is a viable proposition because customers will be willing to “ ...Show more

Summary

Recently, Tesla is focusing its attention for direct investment in markets like India, which will provide them great opportunities for market expansion. India is fast becoming an economic power and many of its citizens have high rates of disposable income…
Author : vernser
Competitor analysis on Tesla essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Competitor analysis on Tesla"
with a personal 20% discount.
Grab the best paper

Related Essays

Business Strategy. (Tesla Motors, Kellogg's Efficiency)
The Kellogg's management was aware that the company needs to be clear on what it intends to achieve in the long term. Therefore, the firm established SMART aims, goals and objectives, and then formulated a strategic plan to enable it to achieve its vision of being the food provider of choice.
9 pages (2250 words) Assignment
Analysis
Nintendo’s initial response to these competitors was the creation of the Nintendo Wii. It would be assumed that Nintendo would face a world of adversity given that it was the last entrant in the market, with giants like Sony and Microsoft having already consolidated their footing in the industry.
3 pages (750 words) Assignment
Competitor Analysis Master Assignment
but, the introduction of the product into the market or resorting to popularization of the product will alone not help the cause of the business entity. In order to be able to gain a significant market share, the organization must initially work towards understanding the existing market scenario & must have an idea of the extent of competition prevailing in the market (Robert J.
10 pages (2500 words) Assignment
Competitor Analysis Assignment
Coke has Pepsi. Toyota has Nissan. Tesco has Asda. Procter & Gamble has Unilever. No business proliferates in isolation, the business demands employees, customers and a supply and distribution chain. And if there happen to be more than one organization into the business of similar kind or offering similar products and similar segments of customers, there's competition.
8 pages (2000 words) Assignment
Competitor Analysis and the Development of a Brand
It wasn’t until 1950s when Fairy Liquid was launched in the market. Towards the end of the first year of its launch, Fairy had 60% of the market share. The idea of a liquid
6 pages (1500 words) Assignment
Competitor Analysis
San Francisco has a vibrant hotel industry with hundreds of various hotels competing with the Baldwin hotel. Among the hotels are prestigious Powell hotel and Hotel Carlton. Both hotels boast varied
2 pages (500 words) Assignment
Answering assigned questions about Tesla Motors Company
The company manufactured its first vehicle called Tesla Roadster in the year two thousand and eight. The company was created by Elon R. Musk, Jeffrey and Mark Tarpenning. The company has a net income of + 6.56
4 pages (1000 words) Assignment
Stock market competition
ndex, companies must have been listed on the Toronto Stocks Exchange for at least twelve months and must meet certain size and liquidity requirements. The value, volume, and number of transactions taken together must be at least 0.025% of the same sum done for all the companies
8 pages (2000 words) Assignment
Tesla Motors
The tesla was famous following the production of the perfect tesla roadster that was the first full electric sports car. The firm’s second model was the model S that is a fully electric luxury sedan then the next
10 pages (2500 words) Assignment
Social Media Marketing Plan for Automotive Dealership
This marketing plan looks at the car dealership market in terms of the clients and the competitors, who determine the success of the company. In order for the company to achieve its social media objectives, it will establish a future strategy by formulating workable goals, mission, and vision statements.
8 pages (2000 words) Assignment
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation