Competitor analysis on Tesla Assignment Example | Topics and Well Written Essays - 750 words

Competitor analysis on Tesla - Assignment ExampleThe escalating costs of fuel and the environmental hazards of emissions disembowel electric vehicles (EVs) the scoop out viable option in the drive home times. As such, a major sh ar of consumers forget prefer EVs such as Tesla, which provide them economy in maintenance and comfort while being environmental friendly and, hence, this segment will be Teslas target market. With their entry into the family sedan market Tesla will be able to diversify their customer segmentation and include more consumers in their customer base (Binkiewicz et al, 2008, p.2). Recently, Tesla is focusing its attention for direct investment in markets like India, which will provide them great opportunities for market expansion. India is fast becoming an economic power and many of its citizens have high rates of disposable income. Thus, it is a potential market for Tesla, especially because environmental safety is a primary concern of this country. Obviou sly, by targeting major cities, populated by wealthy people, Tesla can be better positioned to expand its operations into this international market (Gonzalez et al, 2010, p.17). In this context, Teslas Model S enjoys an edge over its competitors as they be more efficient. explore conducted by Danielle Boyke et al (2010) provides a comparative data of EVs, which indicates that Teslas Model S, with energy densities between 42kWh to 90kWh will give a mileage/charge of clx 300, while Audis energy density of 42kWh provides a mileage of 154 miles/charge. Thus, the average consumer will prefer Teslas EVs over hybrids as these are less oversize-ticket(prenominal) both in terms initial investment as well as maintenance. Luxury car consumers, who come from the influential and educated segment of the society, are highly conscious of the dangers of carbon emission besides having an appreciation of sleek designs. Teslas aesthetic design and environmental friendliness are crucial elements th at make it a hot favorite among this target audience. Customer Segment Needs The likely consumers of Teslas products whole tone for economically viable options that can offer them cozy luxury cars at lower running and maintenance costs. Thus, Teslas cars will become potential favorites in countries where fuel costs are higher. Besides, customers in the present day look for environmental friendly cars as governments across the globe place heavy restrictions on vehicles that cause excessive emissions. Another aspect that customers look for in a car is its design and appeal. Since Teslas cars provide good mileage to vehicles on a single charging, they will find the favor of customers. Competitors For Tesla runabout the main competitors are Porsche and Ferrari and once they launch the Model S Sedan, they will have to compete against existing and future players in the field that include major automobile manufacturers such as Audi, BMW, Lexus, Mercedes, Toyota, Ford, Honda etc. They are onlinely planning, in collaboration with Toyota, to develop an electronic version of the RAV4. The competition will not be a deterrent for Tesla because of several reasons. Primarily, they have a sound technology and efficient team of engineers that can create quality products with good designs. Besides, other major players in the industry mostly focus their attention of fuel run vehicles, which is not going affect Teslas operation in any big way. Countries across the globe are currently focusing on environmental friendly vehicles, which is a great advantage for Tesla when it concerns its operations in countries where fuel prices are high. Pricing Teslas average price of their latest model range from $50,000 70,000 and it appears a competitive price when considering the cost of other cars such as Audi and BMW EVs and non-EVs (Boyke, 2010, p.10). Similarly, their current strategy of competing in the luxury car market as well as international market with Model S is a viable overtu re because customers will be willing to