part of the Five Forces investigation distinguishes the powers of the outside variables that
make the feeble power of the risk of new passage, as takes after:
High cost of brand advancement
High cost of working together
High economies of scale
The results of this Five Forces investigation of Tesla Motors demonstrate that
competition is the most significant power affecting the business. Accordingly, the
organization must organize this power in its key plan. A proposal is for Tesla to keep
fortifying its intensity. More grounded upper hand is achievable through development and
expanded market nearness. For instance, regarding advancement, Tesla can help its innovative
work speculation to outpace contenders’ rate of development. Then again, expanding market
nearness through showcasing effort forcefulness underpins Tesla’s main goal and vision
1.3 Tesla Semi’s target market is middle aged men and women with high income who believe
in the green advantage. According to marketing targets, Tesla Semi will mostly identify with a
specific level, which is the segment marketing. The segment marketing represents groups of
consumers who share a similar set of needs and wants. The basis for segmenting consumer
markets are the following: geographic segmentation which is the geographic region, size,
density and climate. In this case, Tesla Semi will market differently around the world. It can
market to people in places with high gas prices and environmental friendly policies. This way
people have a choice to switch to a car that uses electricity only to power the vehicle and if
they are already Eco friendly oriented they are more likely to make the switch to the
alternative. Demographic segmentation will appeal to middle aged men and women with high
income (does not market their cars to children). Psychographic segmentation for Tesla Semi
will do a strong deal of marketing to different companies. One method is that they offer
companies discounts, the discounts can be taken from the tax that the business pays. Tesla
targets all types of companies, manly companies who believe in the green advantage.
Behavioral segmentation is the behavior towards the product, and in this case the buyer plays
five roles in buying decisions: initiator, influencer, decider, buyer, and user.
1.4 Demographic environment: demographic forces have an effect on people.
Without people, the business doesn’t exist and this is why people are the main actors in sales.
In the case of the Tesla Semi, the target audience is mainly fleet operators’ companies who are
used to make big rides. With these vehicles, people would be able to rest during rides and the
driving will be safer.
Economic environment: the situation economic of a country influences a brand and
his success. For some big companies, the use of Tesla Semi can be seen as luxury, something
not very essential. The high price of the vehicle (150 000$) makes that only companies with
big budget can allow them to spend this amount of money for transports. All this reasons lead
to a high demand of Tesla Semi in rich countries but not in the whole world. However, over
time, the Tesla Semi will make the owners save money and time as electricity cost less money
than Diesel. Some big companies already ordered the truck like the Norwegian Post (Posten
Norge), Pepsis, Walmart or Anheuser-Busch, UPS.
Social-cultural environment: this factor is important because the demand changes
according to the environment. Rich countries can afford to spend this amount of money on
vehicles, but not poor countries. The demand of Tesla Semi changes according to the place. In
some countries, riding trucks for merchandise delivery is totally normal and if this job doesn’t
exist, it would leads to a big amount of unemployment.
Technological factors: this environment is about the way that technology is used with
the brand. With Tesla Semi, the impressive range and recharge claims are a big element.
Indeed, it is possible to recharge in 30 minutes for 400 miles. Their performance exceeds
conventional commercial vehicles: The Tesla Semi will use more of its power to move the
load and not to fight the wind. Integration to the Tesla Mobile Service app via the two
onboard tablets will help identify any problems before they occur. Tesla will improve safety
through autonomous technology.
1.5 Strengths: Tesla Semi’s strengths are, first of all, the brand recognition. Indeed, Tesla
is a well-known brand, recognized in the whole world thanks to its products and services
since 2003. This strength is an important factor in order to generate sales. Other strength of
Tesla Semi is the growing vehicle sales for the brand. The last few years, Tesla has seen
significant growth in its revenue. Indeed, the Brand automotive revenue increased of 63%
from 2015 to 2016. What makes Tesla Semi stronger is the sustainable innovation of the
brand. Tesla cares about sustainability and wants a better and energy efficient world. All its
products are related to sustainability, with energy storage and solar energy systems. Moreover,
all the vehicles are highly innovated and equipped with the best technologies and exceptional
functionalities, which make the products more esteemed. The fast growing super charger
network of the brand is a very important element in the widespread adoption of the Tesla
product. Drivers can charge the vehicles through its charger network on the road. The fast
chargers network are building on North America, Europe, Asia and other markets and are
increasingly common in order to allow comfortable long distance travel. These chargers allow
to charges every kind of Tesla and faster. Its supercharger network had more than 4000
superchargers in 2015 and the brand is planning to grow it to more than 7000 by 2018.
Weaknesses: The high cost of the Tesla Semi is a weakness for the product. For the
most part, Tesla vehicles are more expensive than ordinary brand vehicles, which places Tesla
on the Premium brand of vehicles. The high cost of Tesla vehicles is slowing his sales.
The level of competition is high and is a weakness for the brand. Indeed, more and more
brands like Ford or Nissan are caring about the environment and are making electric vehicles
with lower prices than Tesla vehicles. Due to this difference of prices, people are more
attracted to buy others brands electric vehicles than Tesla’s ones. Tesla has a high production
and high operation costs. Tesla manages to reduce manufacturing costs. Another weakness is
that there is no regulation on autonomous cars and regulation varies from each countries on
trucks with make the Tesla Semi truck problematic.
Opportunities: About the opportunities, the growing demand of sustainable products
is one of them. Nowadays, people are looking for a better environment in their
transportations. People are more caring about the ecology and the future of our earth. Tesla’s
opportunities are growing, as people want products that are less polluting and more
environmental friendly. Tesla vehicles can also save your money than you have spent in
buying products. Money and time will be saved every year thanks to Tesla Semi vehicles,
which doesn’t use fuel. Also thousands of megawatts of solar energy are stored.