Competitor Analysis of Tesla Motors, Inc. Case Solution
Competitive Advantage of Tesla:
Tesla Motors’main source of competitive advantage is its ability to use presented technology in more efficient way. The company has developed a differentiation strategy from those of its competitors in the automotive industry by transforming the lithium ion batteries to hold more charge and provides better millage as compared to the hybrid or plug in based cars. The performance given by Tesla motors has been unmatched in the automotive industry. Furthermore, Tesla provides better and unique value chain ecosystem, which gives exceptional experience to the customers.Moreover, Tesla’s battery packs are estimated to the cheaper than other EV batteries. In addition, Tesla has an established brand name and has placed a market leadership position in manufacturing electric vehicles.(Nandi)
Tesla has built its own supercharge networks which has given ita significant competitive advantage over its competitors. Furthermore, the price of these charging stations is revolved into the price of Tesla’s vehicles and therefore, consumers get the relief of a lifetime free supercharging.
Another important aspect of Tesla’s intangible is that its growing concern about providing the customers with good products and services. Therefore, most of its customers are brand loyal and exhibit high preference over competitors’ electric car vehicles.(Nandi)
The competitive disadvantage for Tesla Motors could be that it is not environment friendly which is the growing concerns of the consumers.It competitors such as BMW have captured the market by producing environment friendly cars, whereas, Tesla has not focused on such areas. Furthermore, Tesla Motors has positioned itself for the upper luxury class while many competitors are using cost cutting strategy to acquire greater market share. Therefore, the price factor might be a competitive disadvantage for Tesla Motors which it should focus on.
The company’s market share and EPS is low as compared to its competitors which is the competitive disadvantage for the company. Furthermore, the company is the market leader in only electric cars therefore, it should focus on the other segments of the industry as well in order to acquire greater market share………………………
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