Flexibility to adopt new technologies but having so

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flexibility to adopt new technologies, but having so many suppliers could cause production to halt if all the parts are not shipped on-time. Such instances could increase operational cost or reduce it.Competitor RivalryThe rivalry in the automotive industry is very competitive. Conversely, the electric vehicle market is modest because there are only 18 different options provided by Nissan, Ford, and Chevrolet (Insideevs.com, 2014). The market is very attractive, and other companies are joining the market such as BMW, Audi, and Volkswagen in which they are offering their plug-in version. In the future, the competition will be more intense requiring companies to be more innovative in their offerings and providing quality vehicles. Tesla should be able to compete with the larger companies without being pushed out of the industry when competition become competitive. Competitive Profile AnalysisWhen compared to Ford Motor Company and General Motors (GM), Tesla is behind in several category. As noted in Appendix E, the organizations rates in at a 25.10 on the CPM. Thescore is low because of the deficiencies in advertising, financial profits, and price
GROUP CASE STUDY 12competitiveness. Tesla’s lack of advertising prevents the company from spreading their brand awareness to generate loyal customers and future sales. The financial profits is a low point for the organization because manufacturing cost to make an electric car is high, and they cannot afford to sell them to the middle class. The price competitiveness is low based on the price Teslasells their electric cars compared to the price their competitors sell them. The competition can afford to make them cheaper which is one of the reasons their CPM scores is higher at 30.20 respectively. Although, there is a difference of 5.10 between the scores, the three companies are highly competitive in the electric car segment of the automotive industry. Additional, Ford and GM can advertise more, offer more products, and sell globally more effectively due to their economy of scales. The companies are highly competitive, however, Tesla has a slight advantagebecause of the technology patents and the advancements in the Lithium Ion Battery technology. Product Life Cycle Tesla’s product life cycle is on the incline in the effort to reduce the use of oil-based vehicles. This is evident by the subsidy support governments across the world is giving Tesla to create electric vehicles. As consumers see the value of electric vehicles, the demand will rise, allowing Tesla to offer their vehicles to them. Conversely, the organization currently have only two models of vehicles for customers to choose. Consumers with large families would like to purchase electric transportation as well, but need larger vehicles. Larger more established car companies can use the current technology and offer more options to customers whether they are quality products or not. Tesla must find ways to mass produce, offer multiple choices, and appeal to all socioeconomic statuses or they will fail to generate new revenue streams.

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