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Marketing Segmentation for Tesla Motors

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Marketing Segmentation for Tesla Motors

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SWOT ANALYSIS ON Tesla Motors Inc - December 1st, 2010
Tesla Motors Inc. is a Silicon Valley-based company that designs, manufactures and sells electric vehicles (EVs) and electric vehicle powertrain components. It is currently the only automaker building and selling highway-capable EVs in serial production (as opposed to prototype or evaluation fleet production) in North America or Europe. According to recent paperwork filed with the US Securities and Exchange Commission, Tesla produces at least 15 cars per week — mostly custom-ordered vehicles manufactured to owners' specifications.

Strengths

* High R&D
* Innovation
* Loyal customers
* Market share leadership
* Strong management team
* Strong brand equity
* Strong financial position
* Reputation management

Weaknesses

* Association with low mpg vehicles
* High labor costs

Opportunities

* Emerging markets and expansion abroad
* Innovation
* Structural slimdown and refocus on core
* Domestic competitor bankruptcies

Threats

* Competition
* Economic slowdown
* Exchange rate fluctuations
* Lower cost competitors or imports

Case for the electric car –Environmental friendliness and low emissions
-High performance
-Improved battery technologies and driving range
-electric cars are more energy efficient than gasoline cars. Short to medium term strategy – sell 100 Roadsters, Create recognizable product, Self funding of future expansion plans, Change opinion of electric vehicles Long term strategy – Focus on brand recognition, Cost optimization, Compete in mass market, Build infrastructure.

A bit of trivia: Tesla Motors is the first U.S. automaker to go public since Ford in 1956. A strong IPO should send a signal to other automakers that the market is optimistic about the future of electric cars. For that reason, electric vehicles, which have notoriously limited ranges, need to have long-range capability comparable to that of fossil fuel-powered cars -- if...