Porters-5-forces-Group-4.pdf - GROUP NO. 4 . Competitive...

This preview shows page 1 - 3 out of 6 pages.

GROUP NO. 4Page1of6.Competitive Rivalry or Competition with Tesla, Inc.Today the number of competitors in the electric vehicle market is increasing. Severaltraditional car manufacturers started to produce electric cars. The Nissan Leaf, theVolkswagen e-golf and the new Volkswagen iD 3, the Kia Niro or Hyundai, Mitsubishiand Renault with their electric models. At this point we have to mention, that the abovementioned manufacturers produce models in the economy car sector with low cost ,which cannot be mentioned on the same table with Tesla´s high-end luxury models, butTesla is still outselling easily his competitors in sector. (see on the table below)(Cleantech,2020)The top five models which are similar to areon the first place the Tesla Model 3, theTesla Model S, followed on the third place by the Porsche Taycan, the Lexus ES Hybridon fourth and the BMW i3 on the fifth place(Investopedia,2020). Although the PorscheTaycan is considered as the most successful EV after Tesla models, it has only soldabout 50.000 models worldwide, which is unsignificant compared to more than3000.000 Tesla Model 3 vehicles (Reid, 2020). Not to mention the technical and pricedisadvantages of the Taycan compared to Tesla models. The basic Taycan model costs103.800 dollars in the US and reaches 253 miles while the top of the line Model 3 ispriced at 56.990 dollars and reaches a top at 162 mph, which is 7 MPs faster than theTaycan. To summarise these facts, Tesla is in a high technical advantage against its
GROUP NO. 4Page2of6competitors, and so, the relatively high number of competitors do not challenge Teslato maintain its leading position in the electric vehicle sector in the two or three years.Table: Insideevs.comThe International Auto Show in New York came up with some new electric models,which could turn the solid competition which Tesla experienced in 2019 and 2020 intoa heavy competition by the next few years. Mercedez-Benz, Jaguar, Audi have shownnew prototypes, which are very promising and will come to production soon.Bargaining Power of Tesla’s Customers/BuyersKey points:Low switching costsModerate substitute availabilityLow volume of purchasesB2B: Bargaining power is low, no other comparable technology is available.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 6 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
VAIBHAV
Tags
Electric car

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture