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Entered Hong Kong and opened a service centre with design studioLeft Singapore without approval of rebate2012First delivery of Model S in US2013First profitability in 10 yearsRepaid loan to US Department of EnergyExpanded into China2015Proposed release of Model X 2017Start on sale of Model 3Start production of GigaFactory
MKTG1275 Strategic Marketing2.2Porters Value Chain:2.1.1Primary activities and costs:Supply chain managementIn terms of Tesla’s Roadster, the main suppliers are as follows:●The body panel was manufactured by Sotira in France●The unique chassis is from Lotus (U.K.) ●Battery pack from Panasonic (Japan)●Single-speed gearbox from Borg Warner (U.S)Tesla then conducts the final assembly in-house in California. As Tesla has deployed the JIT approach on its inventory management, the components and parts are produced and delivered from suppliers in a timely manner (Tesla Motors, 2014). Operations Due to certain car parts and components being unavailable elswhere, such as the battery packs, battery modules and drive units, all of Tesla’s car engineering and manufacturing takesplace under one roof in their US factory (Bowman, 2010). With one of the world’s most advanced production lines, Tesla is able to kick off the production from raw material processing up to final assembly and testing. Also, in-house production of all cars speeds up the entire manufacturing process (Lavrinc, 2013). Tesla started entering the global market when countries started to implement green tax and incentives to encourage usage of electric cars. Its EVs overwhelmed Europe and several Asian countries. However, just 6 months after its establishment in Singapore, the company decided to pull out as they failed to secure the green technology tax break and subsidies from
MKTG1275 Strategic Marketingthe Economic Development Board of Singapore. This forced Tesla Roadster to launch at a somewhat higher price point than a Porsche or Maserati (Radu, 2011). Yet, Tesla is still able to secure its appearance in certain Asia markets, such as China, Hong Kong and Japan, consisting of government incentives to promote ownership of EVs. DistributionTesla owned 18 retail stores and galleries worldwide. Tesla stores function as the showroom that educate visitors about the benefits of EVs and allows them to learn about Tesla Motors (Musk, 2012).Through friendly and informative staff, and the impressive “in-store” experience, the chancesof brand recall is increased when customers plan to buy a car after visiting their store (Brand Insider, 2012). Tesla does not sell their cars in their showrooms, however, the Tesla website allows customers to custom design their desired Tesla car model, make online reservations and also select the preferred delivery address. Only when the reservations are placed, then will production take placwe (Lowry, 2014).