TESLA’s strategy CAR

and management PRESENTATION

issues

Pham Quoc Bao

Trinh Trung Kien
Nguyen Duc Thinh
Le Tat Thang
Vu Hai Hung
 Establishment

TESLA Introduction • Founded in 2003 by Martin

Eberhard and Marc Tarpenning,
Tesla, Inc. began as a small
startup focused on electric
vehicles (EVs).
• Elon Musk joined the company in
2004, investing $30 million and
becoming its chairman. Under
Musk's leadership, Tesla launched
its first vehicle the Roadster in
2008.
Growth
• Over the years, Tesla has
expanded its product line
significantly, introducing the
Model S in 2012, the Model X in
2015, the Model 3 in 2017, and the
Model Y in 2020
Development

• Tesla's growth trajectory has

been remarkable, with annual
vehicle deliveries reaching a
record of 1.31 million in 2022,
reflecting a 47% increase from
the previous year.
 Keys Resources
Vertical Integration: Advanced Technology:
Tesla controls much of its Investments in cutting-edge
supply chain, from battery technology, such as 3D
production to vehicle printing for parts and
assembly, allowing for sophisticated supply chain
greater efficiency and cost management systems, have
savings. streamlined production
processes.

Strategic Partnerships: Sustainability Focus: Tesla

Long-term relationships with prioritizes sustainability in its
suppliers ensure a steady operations, utilizing renewable
supply of components, energy sources and recycled
which is vital for Tesla’s materials, which enhances its
production needs. brand image and attracts
environmentally conscious
consumers.
Key Products

Model S Model 3
A luxury sedan that has received numerous accolades for its A more affordable sedan that has become the best-selling
performance and safety. electric vehicle globally.
Key Products

Model X Model Y
An SUV known for its unique falcon-wing doors and spacious A compact SUV that has quickly gained popularity,
interior. contributing significantly to Tesla's sales figures.
 Global Market and
Market Share

In terms of market share, Tesla dominates the

EV market, holding approximately 60% of the
U.S. electric vehicle market as of 2023. The
company has also made significant inroads in
international markets, particularly in China,
where it has established a strong presence.
Company's Brand Name and Reputation
Evaluation

• Tesla's brand is synonymous with

innovation, sustainability, and high
performance. The company has consistently
ranked high in customer satisfaction,
boasting a Net Promoter Score (NPS) of 96,
the highest among automakers. This reflects
strong customer loyalty and satisfaction,
with many owners expressing a willingness
to repurchase Tesla vehicles.
Company's Brand Name and Reputation
Evaluation

• However, Tesla's brand reputation has faced

challenges recently. A 2023 survey indicated
a significant drop in Tesla's brand reputation
ranking from 11th to 62nd among top
brands, suggesting that public perception
may be affected by various factors, including
controversies surrounding CEO Elon Musk
and pricing strategies. Despite this, Tesla
continues to maintain a strong customer
base and demand for its products, indicating
resilience in its brand identity.
Tesla’s elements
Key products

Tesla, Inc. is a leading American

multinational company specializing in
electric vehicles (EVs)

overview As of 2023, Tesla holds a 19.9% share of the

global battery electric vehicle market,
having delivered 1.8 million vehicles that
year

Tesla's innovative approach and commitment

to sustainability position as a leader in the
automotive sector and the broader clean
energy marke
 TESLA
MODEL Y
• Impressive range options between
260 to 310 miles
• Versatile seating for up to seven
passengers
• Positions Tesla as a leader in the
electric SUV market
• Contributed to Tesla's 64% sales
growth in 2023
Main
products Market
Demand
Strategic
Importanc
e
• Tesla Model Y
Model Y's
• Tesla Model S
Popularity
• Tesla Model 3
• Tesla Model X Sales
Versatile
Performanc
Features
e
Competitors Tesla faces significant rivalry and threats in the
electric vehicle (EV) market, such as: Ford, GM, VW,
etc ..

A major competitor to Tesla in the electric

BYD
BY
vehicle (EV) market, particularly in the
budget-friendly and diverse vehicle
competitors

OPPORTUNITI THREATS
ES
• Pricing Pressure: BYD's focus on
• Market Differentiation: Tesla can
Direct sales model, bypassing
affordable EVs may compel Tesla to
leverage its brand reputation for high traditional dealers or re-sellers
reconsider its pricing strategy
performance and advanced technology
• Increased Competition: BYD's rapid
• Innovation Leadership: Continuous
growth and diverse product lineup,
investment in R&D and advancements in
including electric buses and trucks
battery technology
• Technological Advancements: BYD's
• Global Expansion: Tesla can capitalize
advancements in battery technology and
on its established presence in key
vertical integration
markets
• Market Share Loss: As BYD surpasses
• Sustainability Focus: Tesla's
Tesla in global EV sales, particularly in
commitment to sustainability aligns with
China
consumer preferences
potential entry Emerging Markets:
Middle East and Africa: These regions are
identified as the next frontier for electric
vehicle (EV) ownership.
Opportunities
1.Untapped Market Potential
2.Favorable Government Policies
3.Growing Consumer Demand
4.Brand Reputation
5.Partnership Opportunities

Threats
1.Immature Infrastructure
2.Intense Competition
3.Cultural and Economic Difference
4.Supply Chain Risks
5.Public Perception
 SUBTITUTES

Conventional
Internal Ride-Sharing
Hybrid Electric Public
Combustion and Car-Sharing
Vehicles (HEVs) Transpotation:
Engine (ICE) Services
Vehicles
 SUBTITUTES
• Market Shift: The shift from ICE vehicles capture a
larger market share.

O
• Technological Advancements: Tesla can continue to
innovate in battery technology and charging
Conventional infrastructure.
Internal • Sustainability Trends: Increasing government
Combustion regulations and incentives aimed at reducing emissions
Engine (ICE)
Vehicles:
• Reduced Demand: Tesla may experience decreased
demand for its EVs.
BMW X3 • Competitive Pricing: Traditional automakers are
AUDI Q3
Mercedes-Benz
GLA
T improving the fuel efficiency of ICE vehicles
• Consumer Preferences: Some consumers may prefer
the familiarity and established infrastructure of ICE
vehicles
• Regulatory Changes: Potential shifts in government
policies favoring ICE vehicles
 SUPPLIERS
OPPORTUNITIES
• Guaranteed Supply: Long-term contracts
with suppliers like Ganfeng Lithium
• Technological Collaboration: Partnerships
with suppliers such as Panasonic
• Sustainability Focus: By prioritizing
sustainability in procurement THREATS
• Resilience Against Disruptions: Strong
relationships and a diversified supplier base• Supplier Bargaining Power: Those providing
critical components
• Reliance on Rare Materials: Dependence on
rare earth metals like lithium and cobalt
• Geopolitical Tensions: Suppliers located in
geopolitically unstable regions
• Supplier Consolidation: Mergers or acquisitions
among suppliers
 KEY
BUYERS
Individual Consumers: The primary buyers of Tesla vehicles are individual
consumers seeking electric vehicles (EVs) that offer performance, sustainability
and advanced technology

OPPORTUNITIES THREATS
• Brand Loyalty: Tesla can • Increased Competition: The
capitalize on its strong brand rise of competitors offering
loyalty
similar electric vehicle
• Customization Options:
• Price Sensitivity: Individual
Offering personalized consumers have options for
configurations and features cheaper models.
I/o model & suggestion
Industry Automotive Industry
Characteristics:
Structure The automotive industry is characterized
by high capital requirements,
significant economies of scale, and
intense competition. The market has
traditionally been dominated by
established players with strong brand
loyalty.
High Entry
Barriers:
Significant capital investment, complex
supply chains, and stringent regulatory
requirements create high barriers to
entry, which benefit established players
like Tesla.

Global
Competition:
Tesla faces competition from traditional
automakers who transitioning to EVs
and new entrants, particularly in China.
Organization
analysis

Threat of New Bargaining Power of

Entrants Suppliers
The attractiveness of the EV market is High because Tesla’s reliance on components
drawing in many new players, including like batteries and semiconductors. However,
tech companies and startups. Tesla's vertical integration in battery
production can helps reduce this risk.

Threat of Bargaining Power of

Substitutes Buyers:
Threats may come from alternative With increasing competition in the EV market,
technologies, such as hydrogen fuel customers have more options, which could
cells. pressure Tesla to offer more competitive
pricing or enhanced features

Industry Rivalry
The rivalry is intense, with major automakers
ramping up their EV production and new players
entering the market.
strategy Suggestion
1. Geographical 2. Enhance Customer
Diversification Experience and Loyalty

Tesla should focus on emerging markets, such as Tesla’s software, including its over-the-air
India and Southeast Asia, where the demand for updates and in-car entertainment, is a strong
EVs is expected to grow. Tailoring products to differentiator. Expanding these offerings with
meet the needs and price sensitivity of these new services can enhance customer loyalty and
markets could open new revenue streams. create recurring revenue streams.
 Manufacturing Facilities
- Gigafactory Nevada: focused on battery
cell production, electric vehicle
Tangible powertrains and energy storage products.
- Gigafactory Shanghai: Produces Model 3

Resources and Model Y vehicles, especially in the

Asia-Pacific region.
- Gigafactory Berlin: focused on Model Y
production and battery manufacturing.
- Gigafactory Texas: supports the
production of the Model Y, Cybertruck,
and Semi.
Supply Chain and Raw - Battery Supply Chain: Tesla has
invested heavily in securing raw
Materials materials for its batteries, such as
lithium, nickel, and cobalt. These
materials are sourced globally,
with partnerships and contracts
ensuring a stable supply.
- Logistics and Distribution: Tesla's
logistics network is designed to
support its global operations. The
company has developed a direct
sales model that bypasses
traditional dealerships, requiring
an extensive network for vehicle
distribution and delivery.
 TESLA

Research and Development

Facilities

- R&D Centers: Tesla has several research and

development facilities across the globe, focused
on areas such as battery technology, autonomous
driving, AI, and vehicle design.
- Testing Facilities: Tesla owns advanced testing
centers for its vehicles, including tracks for
autonomous driving and stress testing. These
facilities ensure that Tesla's vehicles meet high
safety and performance standards.
Production - Automation and Robotics: Tesla heavily
Technology and invests in automation technologies within
its factories. This includes custom-
Machinery designed robotics for vehicle assembly
and battery production.
- Casting Technology: Tesla’s use of Giga
Presses, massive casting machines
developed by the Italian company Idra.
These machines allow Tesla to produce
large sections of vehicle bodies as single
pieces, reducing assembly time, costs,
and improving structural integrity.
 TESLA INC

Vehicle Service and

Charging Network

- Service Centers: Tesla operates a global network

of service centers that provide maintenance and
repairs for its vehicles. These centers are
strategically located to support Tesla's customer
base and enhance customer satisfaction.
- Supercharger Network: This network of fast-
charging stations is essential for Tesla drivers,
providing them with the ability to charge their
vehicles quickly over long distances.
GROUP
TESLA
INC

INTANGIBL
E
RESOURCE
S
 Fauget Car
The Best Modern Car Wash

Brand Equity

- Global Brand Recognition: Tesla is one of the most

recognized and valuable brands in the world. Its
brand is synonymous with innovation, sustainability,
and luxury in the electric vehicle (EV) market.
- Customer Loyalty: Tesla enjoys a highly loyal
customer base. This loyalty is driven by the brand’s
reputation for cutting-edge technology, high-
performance vehicles, and its mission to accelerate
the world’s transition to sustainable energy.

GROUP
 Intellectual Property
TESLA INC

- Patents and Proprietary Technology: Tesla holds numerous

patents related to battery technology, electric powertrains, and
autonomous driving. These patents protect Tesla's innovations
and provide a competitive edge by preventing competitors
from easily replicating its technologies.

- Software and Autonomous Driving

- Energy Management Software: Tesla also Technology: Tesla’s Full Self-Driving (FSD)
develops proprietary software for energy software and Autopilot are among its most
management, used in its energy storage products valuable intangible assets. Tesla’s neural
like the Powerwall, Powerpack, and Megapack. network, which powers its FSD capabilities,
This software allows for efficient energy use, grid is a proprietary technology that sets it apart
integration, and energy trading from competitors.
 Human Capital

- Leadership: Elon Musk, Tesla's CEO, is one of the

company’s most significant intangible resources. His
vision, risk-taking ability, and charismatic leadership
have been pivotal in Tesla’s success.
- Talent Pool: Tesla has attracted top talent in
engineering, software development, and artificial
intelligence. Tesla’s employees are integral to its R&D
efforts, vehicle design, and the continuous
improvement of its manufacturing processes.
Customer Data and Insights

Data Collection and Analysis: Tesla collects vast Customer Feedback Loops: Tesla has established
amounts of data from its vehicles, including direct communication channels with its
driving patterns, battery performance, and customers, allowing it to receive real-time
Autopilot usage. This data enables Tesla to feedback and quickly address issues or
improve its products continuously and enhance implement improvements.
its autonomous driving algorithms.
CORE
COMPETEN
CIES
BATTERY
TECHNOLOGY AND
ENERGY STORAGE
SOLUTIONS
- Value: Tesla's advanced battery technology is
central to its electric vehicles (EVs) and energy
storage products like the Powerwall and Megapack.
- Rarity: Tesla's continuous innovation in battery
chemistry and cost reduction makes this competency
rare.
- Imitability: Developing battery technology at Tesla's
level requires substantial R&D investment, access to
raw materials, and specialized knowledge, making it
difficult for competitors to replicate.
- Organization: Tesla's integration of battery
production into its broader business model
maximizes the value derived from this core
competency.
AUTONOMOUS DRIVING
AND SOFTWARE
DEVELOPMENT
- Value: Tesla’s Full Self-Driving (FSD) technology
and Autopilot system add tremendous value by
enhancing safety, convenience, and the driving
experience.
- Rarity: Tesla’s autonomous driving technology is
rare because of its extensive real-world data
collection from millions of vehicles on the road.
- Imitability: Tesla’s first-mover advantage, vast data
sets, and AI expertise make it difficult to replicate.
- Organization: Tesla has effectively organized its
resources to develop and scale its autonomous
driving technology. Tesla’s focus on software and
data-driven development ensures this competency is
fully leveraged.
 Technological
Leadership

- Advanced Battery Technology: The

Competitive Advantage company’s batteries offer superior energy

density, efficiency, and longevity
compared to competitors.
- Autonomous Driving and AI: Tesla’s Full
Self-Driving (FSD) software and Autopilot
systems are among the most advanced in
the industry. This technological prowess
not only enhances the value proposition
of Tesla’s vehicles but also positions the
company at the forefront of future
mobility solutions.
Manufacturing Network
- Vertical Integration: This
integration reduces costs,
improves efficiency, and enhances
quality control. The Gigafactories
are key assets that enable Tesla to
scale production rapidly and meet
global demand.
- Scale of Production: Tesla’s
Gigafactory network enables the
company to achieve economies of
scale, driving down the cost per
unit of both vehicles and batteries.
 TESLA

Brand Strength and Market

Position

- Global Brand Recognition: The company’s ability

to position itself as a leader in the transition to
sustainable energy has created a strong brand that
resonates with consumers, investors, and
governments worldwide.
- Market Leadership in EVs: Tesla has consistently
led the EV market in terms of sales, market share,
and innovation. Its first-mover advantage, combined
with continuous product improvements, has
solidified its position as the dominant player in the
Direct-to-Consumer - Elimination of Dealerships: Tesla’s
Sales Model direct sales model bypasses traditional
dealerships, allowing the company to
maintain greater control over pricing,
customer experience, and brand
messaging.
- Integrated Customer Experience: Tesla
offers a seamless online purchasing
experience, direct delivery, and
personalized customer service, which
enhances customer satisfaction and
loyalty.
 TESLA INC

Extensive Supercharger
Network

- Global Charging Infrastructure: Tesla’s proprietary

Supercharger network is one of its most important
competitive advantages. The extensive and fast-
charging infrastructure enables Tesla owners to
travel long distances with ease, addressing one of
the key concerns for EV adoption—range anxiety.
- Strategic Asset: By owning and operating its
charging network, Tesla ensures that its vehicles
have reliable access to fast charging, which
enhances the overall ownership experience.
GROUP
Tesla’s Key activities in value chain
Primary activities

Inbound Logistics Operations Outbound Logistics

Strategic partnerships with Vertically integrated manufacturing Direct sales model, bypassing
suppliers, such as Panasonic model, handles various stages of production traditional dealers or re-sellers
for lithium batteries in-house, including battery cell production
and vehicle assembly
Primary activities

Marketing and Sales

Tesla relies on word-of-mouth marketing through CEO Elon

Musk's personal brand and social media, generating buzz to
attract customers without traditional advertising costs.

Servic
e
Supercharger network provides free charging at thousand
locations worldwide and alleviate range anxiety for EV users .
Additionally, Tesla's retail locations offer ongoing support and
service for vehicle maintenance.
Support Activities
Firm
Infrastructure
Support its operations for two
main segments: automotive and
energy generation, ensuring
alignment with its sustainable
energy mission

Human Resource
Management
Invest in employee development
and aligns compensation with
performance, ensuring a
motivated workforce capable of
driving innovation.
Support Activities
Technology
Development
Significant investment in R&D
focuses on battery technology and
self-driving capabilities, this
positions Tesla as a leader in the
EV market.

Procurement
Emphasize sourcing high-quality
components while maintaining
sustainability, foster strong
supplier relationships.
Based on resources analyzing, Tesla currently employs a
broad differentiation strategy. This approach allows
the company to stand out in the electric vehicle (EV)
market by focusing on unique, innovative products that
appeal to environmentally conscious consumers.

=>> Continue to follow this strategy

 Cost Leadership
Increase efficiency in manufacturing and
reduce battery costs through innovations at
its Gigafactories. Lowering prices could
attract a broader customer base, especially
in emerging markets.

Recommendation

Focused Differentiation
By targeting specific market segments, such
as luxury EVs for affluent customers or
affordable models for the mass market. This
allows Tesla to cater to diverse consumer
preferences while maintaining its innovative
edge.
 References
https://www.investopedia.com/articles
/active-trading/072115/what-makes-teslas-business-model-different.asp

https://thestrategystory.com/blog/tesla-competitor-analysis/

https://www.tesla.com/ns_videos/Tesla-Master-Plan-Part-3.pdf

https://www.trade.gov/selectusa-automotive-industry

https://teslamotorsclub.com/tmc/threads/which-ice-vehicle-is-most-comparable-to-a-tesla-model-y.236
880/
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