Falcon's Invoice Discounting: Your Path to Prosperity
Tesla presentation
1. Class: BUS 574 Strategic Management
Researchers:Leo, Benson, Noon, Mina
Date: 3/29/2016
“Tesla and Hypercompetition Concept”
2. Roles of members
1.Zhaolei Xu (Leo) : CEO
2.Chen Hu (Benson): R&D Department
3.Natchaya Charnsakorn (Noon): Financial Department
4.Natthawan Saethea (Mina): Marketing Department
3. Figure 1: Model S (Tesla, nd)
Figure 3: Supercharger (McBride, 2015)
Figure 2: Power Wall (Tesla, nd)
5. Research Question
How Tesla handle or avoid a hypercompetition in the industry?
Learning Objective
Hypercompetition for new energy industry in the future.
7. #1. Pro
● We can expand business and become
the leader of this industry.
#1. Con
● Increase competition in same
industry.
Figure 4: EV Chart (CHART: Comparing Tesla
With Other Electric Cars, 2013)
To be No.1 in the EV industry
8. #2. Pro
• Our product is more competitive
#2. Con
Monopoly of charger station
Figure 5: Tesla Motors (McBride, 2015)
• High cost
• High risk on ROI
10. #3. Pro
• Entry the solar industry for our 100 years
old strategy Suskewicz (2015)
#3. Con
Taking risk
● High cost of investment
● People don’t care
● Location and Availability of Sunlight
Rinkesh. (2013) Figure 7: Solarcity (Solar, 2015)
Figure 6: power wall (Solar, 2015)
Horizontal Strategy
11. Evaluation
• cooperate with other companies such as: Google company
• Expand the charger station for every EV and franchise
charger station
• Being partnership with real estate, hotel and solar industries
• Avoid hyper-competition
12. References
CHART: Comparing Tesla With Other Electric Cars. (2013). Business Insider. Retrieved March 29, 2016, from
http://www.slate.com/blogs/business_insider/2013/08/16/tesla_model_s_electric_car_comparison_chart.html
Grant, R. M. (2015). Contemporary Strategy Analysis 9e Text Only. John Wiley & Sons.
Josh Suskweicz (2015) Tesla’s New Stratgy is Over 100 Years Old. Retrieved from
https://hbr.org/2015/05
McBride, A. (2015). Tesla Motors Upcoming Charging Stations in New York Will Facilitate Model S Owners. Retrieved March 29, 2016, from
http://yoursinglesourcefornews.com/tesla-motors-upcoming-charging-stations-in-new-york-will-facilitate-model-s-owners/1127/
Reichmuth, D. (2014). An Electric Spring: 3
Strong Trends in the EV Market. Retrieved March 27, 2016, from
http://blog.ucsusa.org/dave-reichmuth/electric-vehicle-trends-458
Rinkesh. (2013). Disadvantages Of Solar Energy - Conserve Energy Future. Retrieved March 28, 2016, from http://www.conserve-energy-
future.com/Disadvantages_SolarEnergy.php
Solar, H. (2015, May 03). Tesla Energy Powerwall: Making Battery Storage Affordable. Retrieved March 29, 2016, from
http://www.haleakalasolar.com/hawaii-solar/tesla-energy-powerwall-making-battery-storage-affordable/
Tesla.(n.d.). Model S. Retrieved March 29, 2016, from
https://www.teslamotors.com/models/preowned
Tesla.(n.d.). Model X. Retrieved March 29, 2016, from https://www.teslamotors.com/modelx
Tesla.(n.d.). Powerwall. Retrieved March 29, 2016, from https://www.teslamotors.com/powerwall
Tesla's Annual Report. (2015).
Morningstar. Retrieved March 28, 2016, from
http://quote.morningstar.com/stock-filing/Annual-Report/2015/12/31/t.aspx?t=:TSLA
Editor's Notes
In California, sales of EVs also increased more than 100 percent in 2013 compared to the previous year, and the state was home to nearly half (46 percent) of all new plug-in vehicles in the U.S. In 2013, plug-in cars were 2.5 percent of new vehicle sales in California.
Hypercompetition is an environment characterized by intense and rapid competitive moves, in which competitors must move quickly to build advantages and erode the advantages of their rivals.
Pros
The company want to invest in the charger station, which provide only for Tesla’s car to influence customers buy Tesla’s cars.
Increasing sale revenue because if the company provides more charge stations, which provide convenience to customers, it will influence customers to buy our products.
If company can serve all customers’ problem with charge station, which other company cannot do, it will be company advantage.
Cons
•Require high cost of investment as you can see in the graph the company gain lost, so it is not the right time to invest in this project.
•Moreover, compare with engine car, electric vehicle has low customers base. Still has high risk to invest in getting return
Suggestion
The company should open the charger station that available for other brands to gain revenue from the charger industry. Or, in the future the company should cooperate with other company by sharing the Superchargers, which can reduce cost.
http://quote.morningstar.com/stock-filing/Annual-Report/2015/12/31/t.aspx?t=:TSLA&ft=10-K&d=a3c6ee3a28a589689ca2f08b783dbfaah
กระทบต่อ net income ในอนาคต ซึ่งดูจากกราฟแล้ว Net incomeจะลดลงอีก
Pro
Demand’s Solar panels is increasing everydays
Company should invest in other industries such as real estates or hotels in order to expand business
Con
Costly of investment and ROI takes long term
Customers don’t care and they are lack of knowledge about solar energy
Solar panels work in some locations and weathers
