Write an essay on Tesla.
Tesla is renowned for its premium and high end electric cars. In Australia, there are a number of wealthy people who spend their top dollars in buying high end cars from various other companies like Mercedes, BMW, Audi, Toyota, HSV etc. Tesla has a healthy market for itself in the countries of Europe and Australia. The range of the cars is so outstanding has been increased whereas with the development of supercharging dock stations the cars recharge their battery to hundred percent in just one hour (Allen, 2016). The company is successful in various nations with the help of its technology and performance. Entering into the Australian market is viable as the cities of Australia are already filled with various other luxury cars (Berthon & Pitt, 2015). Thus, the presence of wealthy people will be facilitating in a viable sales rate with appropriate marketing plan.
Australia being a developed country, there is increase in the flow of luxurious items like gadgets, automobiles and other technologies. The streets of the major cities are filled with various sports cars and high end luxurious vehicles. With the successful launch and production process of BMW i8 and Mercedes Benz SLS AMG electric it can be seen that Australia can result into a healthy market for electronic cars. There are various reasons that support this attempt. One of them is the fuel costs which is substantially high and much tedious for keeping these conventional automobiles (Teslamotors, 2016). The second most important reason is that most of the wealthy people use these high end luxurious vehicles to communicate within short distances. With the rise in the price, the cost of commuting is high due to the consumption of fuels. Therefore with a proper marketing plan Tesla can enter successfully in Australia within the promotional budget. The report is based on the marketing plans and strategy that is essential for the success of the business venture of Tesla (Browne et al., 2014).
In order to continue the expansion of Tesla in Australia, an overview is essential for the continuation in the same path in future.
Tesla at the core believes that the electronic cars must not be understood as a mode of transport that is sacrificial. Tesla has integrated the automotive and technological worlds together. The hundred percent electronic power terrains will not only facilitate in propelling in the present but it will also help in creating a strong foundation in future (Chan, 2013). Tesla is focused in producing electric cars that are viable and an alternative vehicle which will set out the misconceptions regarding the electronic vehicles. Tesla is not far behind as it is successful in producing cars that are beautiful and exciting to drive along with being the most efficient automobile on the planet (Teslamotors, 2016).
A clean start requires a Silicon Valley approach that shows that Tesla is moving rapidly with innovation and technologies. The commitment of Tesla for being absolutely electric so it produces the best electronic cars and power trains the world. The technology not only increases the performance of the car it offers a path towards a future of sustainable energy in an efficient way (Chng et al., 2015). The built around the driver is connected in such a way that has never been done by any other company in the world. The goal of Tesla is to accelerate the transition of the world in to electronic mobility with the complete range of affordable electronic cars. The main plan of the organization is to generate find for supporting the research and development for an affordable electric car.
The mission is to provide a customer experience that is compelling in nature with the gathering of rapid customer feedback and attaining operating efficiencies. Along with all these the main mission of Tesla is to control the costs of inventory, pricing, warranty service and the growth of Tesla (Cross, Belich, Rudelius, 2015).
PESTLIED analysis will to find out the viability of this investment.
Political Factors: In this case of Tesla the political area will definitely suit to the organization more over the government of Australia aims at reducing the pollution in the country due to huge number of vehicles that are running in carbon based and non renewable resources. Since Tesla specifically produces electronic vehicles, the political policies will favor the organization to carry out its business operations (Crouch & Housden, 2012).
Economic Factors: Economic area is highly suitable due to presence of various markets in every direction in the country. The availability of healthy market decreases huge amount of risk that is involved in investment of the organization.
Social Factors: Social aspect is favorable as owning a high end luxury car is trending among the Australian entrepreneurs and political personnel. The wide variety of sales that is seen in the present days promises to yield spectacular sales result for Tesla.
Technological Factors: Technology has considerably improved in India with the development of various smart cities around the nation, the organization can tie up with the government to set up the supercharger for providing the charging docs for the cars that will be used for the cars to charge up their dried batteries which will favor the customers who will be owning these cars. So, from a technological point of view there is no risk involved.
Legal Factors: Since the company elevates the use of alternate and clean source of energy for the operation of its product, there are no obstacles involved in the legal point of view (Crouch & Housden, 2012). Australia needs alternate energy sources apart from the traditional fueling in the automobiles.
International Factors: Tesla is providing such an alternate way that promises for a clean environment, therefore; government will definitely promise in providing smooth exchange rates and other international factors that are involved with the operations of the business.
Environment Factors: Tesla’s motto is to provide vehicles that run on a clean and renewable source of energy, therefore there is no involvement of any issues relating to the environment. Moreover, with the proper attention to the utilization of alternative resources in the production facility and process it will reflect the concern of Tesla for the environment (Felzensztein, Gimmon & Aqueveque, 2012).
Demographic Factors: The demographic factors have no chance in raising risks that are associated with the launch of Tesla as Australia has ample human resources that can meet up to the requirement of the organization for providing required service to its customer right from assembly line to the rooms of research and development (Foxall, 2014). So there is no risk involved that has the ability to influence the targets of this organization.
The analysis can be viewed in a summarized way that suggests that the organization will be having a positive impact with the investment in Australia as it supports the needs of the government that reduces pollution and promises to commence a new trend of automobile that safeguards the environment.
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Internal Analysis (Tesla) |
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Strength: · R&D ability of Tesla and manufacture of vehicles within the company. · Supply of parts to various other companies. · Developed world’s first efficient fully electronic automobile · Superior in drive train and transmission · Superior in electronic technology. |
Weakness: · Innovation comes with high price. · Low demand of the car due to high price. · Small segments are targeted including the early adopters. |
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Opportunity: · Increase in support from the government. · Increase in gas prices. · Innovation in technology |
Threat: · Current business model of Tesla will allow in produce a limited amount of vehicles that can increase a chance of competitor who could steal the market share. · Competition against strong competitors. · Low price of competitor vehicles. |
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External Analysis (Mercedes Benz) |
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Strength: · Financially sound · Innovative culture · Technological Innovations · Loyalty of customers · Awareness of the brand |
Weakness: · Weak service provided to customers. · Cost of production is high. |
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Opportunity: · New segment of market relating to fully electronic cars. · International expansion. · Growth of economy · Increasing demands of luxury vehicles. · Innovation of new products. |
Threat: · Increase in gas prices. · Intensity of the competition is high. · Change in trends of the customers. · Technological problems. · Increase in the cost of raw materials. |
The presence of other organizations producing electronic cars is very less. The only competitor is BMW with the launch of i8 and Mercedes SLS AMG Electric Drive. Except for that there are no such competitions for Tesla (Hennig, Hofacker & Bloching, 2013). Since Tesla focuses on building cars that run on electric power produced by the battery it has adequate research and development to launch various kinds of vehicles that suit the people in this country. So, the investment can promise to provide fruitful productivity and huge rate of return.
The company faces various obstacles as it is a new entry to the automobile industry which is a highly competitive industry. Tesla however builds cars that are completely electronic without compromising with the performance and style. The main challenge is that it is unable to sell the cars at enough potential. Everybody has an idea that the company is a techy innovative company that produces electronic cars but no one is persuaded to purchase these cars. This drives Tesla to carry out research over the electronic car’s stigma and utilize the knowledge where they are good at. Tesla therefore focuses on these challenges and creates something new, creative and innovative (Institute of Leadership & Management, 2012).
At the time of delivery or pickup customers will be supplied with a mobile charger and connector that will facilitate the customers to literally charge the car wherever there is a wall chager. The company also recommends that the charging must be done over a two hundred forty volt outlet only as it provides a lot more power than a regular outlet which will facilitate in charging up the car much faster (Jogulu & Rentschler, 2014). With each hour of charging it enables the car to drive sixty two miles and this has to be informed to the leases and buyers so as to avoid any kind of problems. Money is at times considered to be most important therefore charging up the cars completely from empty state to full it will be costing around $11.88 which is a huge amount every time it is completely charged. If this is compared with the amount spent on gas there is a drastic savings.
One of the most common disadvantages for the potential buyers of electronic cars is the initial cost associated with purchasing which is incredibly high. With the advancement of technology the cost for making electronic cars is declining and a new model of Tesla is developed that focuses on the reduction of cost (Marta et al., 2013).
There are not many options as the basic cars, electronic cars are much unique in terms of their operation. Based on being completely electronic the cost of the production is more as compared to conventional fuel powered car. Therefore, in order to lower the cost of the car some of the features are removed from the high end model of the car and to maintain the luxury, some of the essential features are kept intact and untouched (Magnusson et al., 2013). This practice facilitates in lowering the price which brings out more customers for purchasing the car.
These are the three segments of markets that are present in Australia who buy various kinds of cars as per their economy. So the higher income groups can be targeted and cars must be developed in such a way that it has every feature of a high end sports car and performance with a hint of Tesla i.e. more distance coverage in minimal charging time. The middle income groups look for a car that has a well designed body and has every feature that exists in an executive vehicle. The number of this income group is high therefore Tesla must prioritize the manufacture of cars accordingly (Massey & Kyriazis, 2015). Much larger group of people exist in the group of upper middle income groups where some are looking for an executive vehicle where as rest of the others look for a car that is just electronic with an appreciable performance. So Tesla has three market segments to cover up and manufacture cars accordingly so as to meet the requirement of the market and provide a tough competition to rest of the rival companies.
The main aim of the strategy is to increase the market share of Tesla over the next five years by introducing cars that have low price like the model Gen3 and model s. The marketing strategy mainly focuses over various means for covering the major parts of Australia by various means other than the official webpage (Mintz & Currim, 2013). Tesla has its websites for the customers that enable them to build their car according to their requirement and place order. Following are the objectives of marketing strategy:
With the battery technology of Tesla it provides a mileage that is phenomenal and is unmatched with the mileage range of the competitors. So for targeting the upper middle income levels the company can manufacture cars that are smaller in size and will increase the affordability of the customers.
The main focus of communication with Tesla is the online site where traffic is the major concern. The increase in the traffic is essential for the company’s health. The communication strategy focuses on three media sources the first one is Google’s Ad Words, advertising in the major newspaper and magazines, outlets of social media and various companies sponsored events. The strategies will facilitate in increase in the traffic that will be leading the company to increase its revenue (Piercy & Evans, 2014).
Tesla can help itself to promote over the internet by using targeted advertising tool offered by Google which focuses mostly on the searches that deal with the electronic and hybrid cars. The Pay-Per-Click advertising model provided by Google will facilitate in online advertisement that keeps focus over the budget. Based on the number of clicks by the visiting customers, the amount of the web traffic to the website is determined. Tesla gains a secondary effect from this strategy as with each visit to the site it creates a brand awareness that results in heightening the overall sales of the company (Peck et al., 2013). The effectiveness of the program can be determined by tracking of conversation rate that is offered by the program. The keywords associated with Tesla are focused on the selection of specific goals and by setting the budget Tesla can attain an increase in the conversation rate.
In order to reach certain demographic media newspapers can be used to increase the traffic of the website. Several leading newspapers like The Age, The Australian, Brisbane Times, Wheels Mag, Auto Action etc can be used. These magazines cover up the graduate college students with a median age of more than forty and income level of over seventy thousand dollars. Each magazine can be used to provide a single page ad with no contacts will cost around fifty five thousand dollars (Rocco & Whalen, 2016). Tesla can use this media to cover up roughly sixteen million people for creation of brand awareness and increment in the web traffic.
This can be launched at several states covering up the most noticeable markets in Australia. The organization must also reach out to the several online media for facilitating the exposure of the company and its products. The online media will provide an opportunity to the customers to test drive the cars and offer reviews. These reviews will facilitate in the exposure of the cars in specific to various models available for testing.
The main hub for announcement and advertisements will be the official website of Tesla i.e.. The announcement of the new cars and promotion of the campaigns and provision of entering contact details is carried out within the website itself (Turnbull & Valla, 2013). The company also focuses on the various social media websites as a platform for making various announcements and promotion of the events that take place around the nation i.e. Australia. The ads will be present on the homepage of each social media website to maximize the exposure of company and its various products.
Conclusion
The report estimates the viability of the business proposal and venture, this estimation is done by doing a research over the various facets of Australia’s social and economical condition. The economy and various government reforms are considered to evaluate the viability of the project. The trend in automobile purchasing of the people in Australia is observed and various suggestions are made for the production of cars in accordance with the various market segments (Rawwas, Arjoon & Sidani, 2013). The channels for communication are examined so as to develop appropriate communication strategy that gives the company an advantage to be exposed into the market.
References
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