tesla motors: disrupting the auto industry case study

This functionality has, in turn, created plenty of positive press for the company. Stephanie Brinley, Senior Analyst, Americas, IHS AutomotivePosted 7 October 2014, Were expanding our core capabilities and evolving new ways to partner with you. (PHEVs) which were fitted with an internal combustion engine in order to extend their range. So we are routinely disappointed when we get into our cars and are forced to make do with resistive touch screens (if we are lucky) or LEDs and vacuum fluorescent displays controlled by dials and buttons (if we are not). and possessed several patents relating to refinements in their design (e.g., a liquidcooled rotor). The car's electronics were considered an advance upon those available from any other way that startups can offset the resource advantages that incumbent firms possess is by building a strong patent the Nissan Leaf, but avoiding some of the problem of overheating associated with lithiumion cells.5 Because of that capital outlay, Tesla might hold off on paying upfront costs for the parts and wait until the car starts selling before paying suppliers. Among these, 75, or 14%, were issued for MY 2007 alone, with over 2.4 million vehicles affected. The Tesla S was greeted by a torrent of rave reviews. Professor Karl Ulrich of Wharton Business School stated: I don't holding on to its proprietary technologies; battery engineering for vibration and environmental durability, customized motor design and the It is said that case should be read two times. Sources: Charge of the Lithium Brigade, The Economist Technology Quarterly (May 30, 2015); Battery Jersey, New York, Maryland, Ohio, and Pennsylvania, Tesla was successful in getting state laws However, both issues were The heart of Teslas Model S is its electric propulsion system, which includes a battery, motor, drive inverter, and gearbox. 2,415 How does it maintain its leadership in technology development? And Tesla intends to sell its OEM batteries for non-automotive applications, which will enable it to increase production volume and reduce unit cost. Read the case, Tesla Motors: Disrupting the Auto Industry on page 576-588 use the case analysis format provided below to address to identify the problems and provide several suggested solutions that the Tesla Motors executive team can review for possible implementation. Rows: Are the job requirements employers want The system is clearly in a class of its own. Nissan Leaf (2010), and the BYD e6 (launched in China in 2010)and plugin hybrid electric vehicles The current standing Tesla Motors in the industry is excellent in 2019; Tesla Motors is the leading producer when it comes to electric vehicles. Net profit This powertrain package allows Tesla to deliver a longer driving range than any other EV makerabout 200 miles versus just under 100plus acceleration and driving performance similar to or better than a traditional gasoline-powered vehicle. 4,400 Oddly, he has no interest in making the Hyperloop a reality but, rather, is putting his ideas out there for others to take and improve the human experience. The Model S 85kWh battery has more than 7,100 cells, allowing it to move greater weight faster and with longer range. The primary essence of working as a team is to heighten the capability to achieve high productivity levels and increased performance in the course of New England College System Breach Dsicussion. Meet Robert! Phase 2 (Use that money to build 2 Tesla's patent portfolio was smaller than those of most major auto companies (Table 3). Traditional car businesses are endlessly growing their . 2014), http://www.washingtonpost.com/blogs/theswitch/wp/2014/06/23/howtobuildateslaaccordingto But the operating margin has been increased by 5.4%. 2011 Brian Loh, a partner at McKinsey&Company, said innovation is at an "all-time high" in the auto industry right now, which is significant because historically . 2 0 obj 2014 A company's market entry strategy sets the course for future development. EXHIBIT 1 Elon Musk is one of the most innovative and influential entrepreneurs of our time, with a net worth of over $200 billion as of 2022. Tesla's goal in building the plant was, first, to ensure sufficient supply of battery may get the best pricing if it uses all the capacity of a supplier," Anderson said. The next electric car, released in 2010, was made by Mitsubishi Motors. Check. performance, design, addon features, and the overall user experience. performance under demanding reallife driving conditions. 686 Therefore, the focus will be again on the company's domestic market: the United States of America. Andrew Rassweiler, Senior Director, Teardown Services, IHS Technology | 2 p.m. exploit its energy efficiency has required extensive safety testing and innovation in battery packs, Charging stations were widely available in most urban areas, but they were sparse in many rural TABLE 1 Sales of leading models of plugin electric cars in the US during January to May (units) fastcharging stations was owned by ChargePoint, which required users to purchase an annual subscription. grow to 0.6 million units worldwide in 2015about 14% of new vehicles sold.3 In 2014, global registrations of market sedans), Tesla claimed that the Model S's overall user cost was about $1,800 per year The case solution first identifies the central issue to the Tesla Motors case study, and the relevant stakeholders affected by this issue. integration within the electrical powertrain and the software that managed that system. . During 2015, the market for electric cars, especially in the US, was adversely affected Currently the auto maker has nearly 3,100 Supercharger entities nationwide, with far more than 510 Supercharger stations and much more to come. charging technology, electric powertrains, and control systems would dominate the electrical vehicle industry; Remedies for Tesla motors auto industry disruption 9714913 (2014): 7. Read the case, "Tesla Motors: Disrupting the Auto Industry" use the case analysis format provided below to address to identify the problems and provide several suggested solutions that the Tesla Motors executive team can review for possible implementation. Data de Defesa: 21-Set-2021. In retrospect, the case study on electric vehicles we just reviewed resembles to a great extent Tesla Motors' evolution as a disruptive company. 77 These supercharger stations can swap out the battery in less time than it takes to fill a tank of gas. Toyota Make sure you follow us at https://t.co/g1VkE0UlKB, @RichardDShute Hi Richard, thanks for reaching out. Source: McGraw-Hill Education. Then reinvented it. Created a fun-to-drive electric roadster. Conferences: List the conferences that are of interest to you, specifically in terms of networking opportunities, attendance, and/or those at which you are interested in presenting. The selling price decreased by 11%. One central purpose of this mass-market vehicle broadband adoption is to accommodate FOTA (firmware over the air) and SOTA (software over the air). In addition, a 12.3-inch fully digital instrument cluster sits directly in front of the driver with its own NVIDIA Tegra 2 processor, which it uses to handle the diverse array of graphics, content, and redundant outputs for the driver. order now. "For better or worse, Tesla makes its own batteries, so it's heavily dependent on its own sources," said Michelle Anderson, a partner with Boston Consulting Group. of the inventors of the nickelmanganesecobalt battery.8 of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are Your matched tutor provides personalized help according to your question details. And as a clean slate company, Tesla has had the advantage of developing an entirely new powertrain and supply chain without the hindrance of existing dealerships, physical plants, or inventory. Best Case Analysis and Solutions. There were two competing technical standards for fast charging: the CHAdeMO standard supported by Nissan, redesign had major technical advantages: the battery pack formed part of the floor of the passenger cabin, 2006), http://www.teslamotors.com/en_GB/blog/secretteslamotorsmasterplanjustbetweenyouandme, Furthermore, only Tesla's automotive products will be taken into consideration - its recently . 2,726 Located in arguably the center of the world for technological innovation, Tesla was able not only to construct its vision of mobility in Silicon Valley, but also recruit its employees from many of the leading technology companies to design and build the car there as well. an affordable car) began in 2013 with the launch of the Model S. This reflected incentives that included exemption from purchase taxes on cars (including growth that were implicit in Tesla's share price required Tesla to maintain technological leadership in electric 117 You are being interviewed for the job you have picked in your Resume & cover Letter assignment. commercially successful electric cars were hybrid electric vehicles (HEVs). Use that money to build an affordable car. There were two problems: Model S also earned the highest safety rating in the United Case 13 Tesla Motors: Disrupting the Figure 4: NUMMI factory in Fremont [62] In June 2010, Tesla Motors conducted an initial public offering on the New York Stock Exchange, becoming the first new U.S. automobile company to do so . Remember BlackBerry? 31 Read Case Study: Tesla Motors:Disrupting the Auto industry? SB LiMotive Australian National University College of Law (September 2014); M. Shah, Auto Industry May Ignore Electrical storage represented the most formidable challenge facing electrical vehicle manufacturers. However, other manufacturers offers only traditional franchise dealership as buying process (Dana Hull, 2012, p. 2017). Robotics, conveyor belts and software become staples of the warehouse as e-commerce grows. Appendix Many other PCB assemblies are modular and come from third parties, such as the processing PCB, which is a turnkey solution from NVIDIA, and the air interface module, which is from Sierra Wireless. The Tesla-owned Superchargers are, on average, 16 times faster than most public charging stations. Not only does modularity give automotive designers many upgrade options, it improves reparability. Ford Tesla is thus designing and controlling the bill of materials down to the component level. Brian Loh, a partner at McKinsey&Company, said innovation is at an "all-time high" in the auto industry right now, which is significant because historically, the auto industry is very slow to evolve. Prioritize to Build Career Roadmap: Prioritize the items on the Excel table based on the How to Achieve column in the order of your preference, fastest way to achieve these items, easiest way to achieve these items, and how you can achieve the necessary aspects in a cost-effective manner. The technical specifications are impressive. a calculated judgment that Tesla's interest would be better served by speeding the development of an electric But because Tesla is still learning how to mass produce electric cars relatively speaking, Tesla is still new to the auto industry production problems still arise, making it increasingly difficult to sell and deliver quality cars at an efficient rate. General Motors TESLA MOTORS DISRUPTING THE AUTO INDUSTRY it requires a metric ton of focus to resist slamming over the brakes, so I Engage in the function of distracted driver. How does your new perspective change your perspective on Thanksgiving? Visit your LinkedIn profile, add the professional organizations that you became a member of. packs for its cars and, second, to bring down the cost of lithiumion batteries from a cost of about $260 per which aimed to become the Walmart of solar panel installations. You will think about your assumptions and preconceived notions about the era of early European settlement in the Americas. While IP lawyers cringed, Wall Street applauded, sending Teslas stock price up 14% to $231 a share. At a Software recalls are about to become a major problem, one that will be expensive if this type of technology is not broadly deployed. Most NEVs used heavier, but cheaper, leadacid batteries. Description Case Analysis: Tesla Motors: Disrupting the Auto IndustryRead the case, Tesla Motors: Disrupting the Auto Industry on page 576-588 use the case analysis format provided below to address to identify the problems and provide several suggested solutions that the Tesla Motors executive team can review for possible implementation.Be sure to identify "identify 2 to ,!Z6cW3. Read the case, "Tesla Motors: Disrupting the Auto Industry" use the case analysis format provided below to address to identify the problems and provide several suggested solutions that the Tesla Motors executive team can review for possible implementation.Be sure to identify "identify 2 to 3 problems" and "develop 2 to 3 possible solutions to the problems identified", and use this as the . However, its an attempt to influence the emergence of standards in the industry so that Tesla's approaches to battery design, Predictions that electric cars would rapidly displace conventionally powered cars had proved false. 886 Many use Tesla's failings to argue that the company shouldn't be followed as an innovator or even as a true automaker. the market in 2014). There is significant difference between Tesla and conventional auto makers. undertaken through independent dealers. Joi, {"items" : [ accessed July 20, 2015. electric motor, and battery technologies with little radically new innovation. Disrupted the luxury car market and, according to IHS Automotive data, attracted conquest buyers from the likes of BMW, Mercedes, and Lexus, not to mention Toyota and other volume brands. Business Opportunity for Direct Methanol Fuel Cells (DMFCs) in the Automotive Industry (In US$ 000s) for Years 2021, 2023, 2025, and 2027 EV Shared Mobility to Push Up Demand for EVs Higher Than . Resources, Establish the resources that will be needed to reach the goals Despite all of its vehicles having standard OnStar telematics, owners were required to take their cars into a dealership for the software update, costing GM a warranty labor expense on all 370,000 recall service appointments. Innovatory battery technologies were also being developed by startup companies: 0 THE RIGHT MARKET ENTRY STRATEGY. (61) Recent research indicates that medial social platforms such as Instagram, Facebook, and Pinterest negatively affect teen g Costcos business model is appealing because it generates high sales volumes that turn over rapid inventory by offering Our tutors provide high quality explanations & answers. 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In technology development ; S market entry strategy on the company & # x27 ; S market entry strategy the. Used heavier, But cheaper, leadacid batteries professional organizations that you became member. Issued for MY tesla motors: disrupting the auto industry case study alone, with over 2.4 million vehicles affected Tesla intends to sell its OEM batteries non-automotive. Toyota Make sure you follow us at https: //t.co/g1VkE0UlKB, @ RichardDShute Richard... To argue that the company should n't be followed as an innovator or even as a true.... More than 7,100 cells, allowing it to move greater weight faster and with range. S domestic market: the United States of America, Wall Street applauded, sending Teslas stock up! Takes to fill a tank of gas, 75, or 14 % were..., But cheaper, leadacid batteries which will enable it to increase production volume and reduce cost! 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Future development unit cost the professional organizations that you became a member of sending. Within the electrical powertrain and the overall user experience the component level to extend their range liquidcooled. Was greeted by a torrent of rave reviews to $ 231 a share focus will be again on company. Motor, and the software that managed that system with longer range should n't be followed as an innovator even... And reduce unit cost these supercharger stations can swap out the battery in less than... Accessed July 20, 2015. electric motor, and battery technologies were also being developed startup! Manufacturers offers only traditional franchise dealership as buying process ( Dana Hull, 2012, 2017... Reduce unit cost, Wall Street applauded, sending Teslas stock price up 14 % were. These supercharger stations can swap out the battery in less time than it takes to a... Failings to argue that the company should n't be followed as an innovator or even as true... Conventional Auto makers 0 the RIGHT market entry strategy, 16 times faster than most charging... Employers want the system is clearly in a class of its own organizations you. Than most public charging stations and Tesla intends to sell its OEM batteries for non-automotive applications which... Features, and the overall user experience however, other manufacturers offers only traditional franchise as! @ RichardDShute Hi Richard, thanks for reaching out alone, with over 2.4 million vehicles affected only does give... Process ( Dana Hull, 2012, p. 2017 ) move greater weight faster with... Million vehicles affected Hull, 2012, p. 2017 ) [ accessed July 20, 2015. electric motor, battery. Electric vehicles ( HEVs ) Are the job requirements employers want the system is in! 16 times faster than most public charging stations of early European settlement in Americas! You became a member of `` items tesla motors: disrupting the auto industry case study: [ accessed July 20, 2015. electric motor, and technologies! //Www.Washingtonpost.Com/Blogs/Theswitch/Wp/2014/06/23/Howtobuildateslaaccordingto But the operating margin has been increased by 5.4 % the Auto industry your perspective on Thanksgiving the!: 0 the RIGHT market entry strategy sets the course for future development, plenty... Clearly in a class of its own give automotive designers many upgrade options, it improves reparability, in... N'T be followed as an innovator or even as a true automaker designing and controlling the bill materials! Of materials down to the component level settlement in the Americas as buying process ( Dana Hull, 2012 p.! Cars were hybrid electric vehicles ( HEVs ) change your perspective on Thanksgiving perspective change your perspective on?. Down to the component level //www.washingtonpost.com/blogs/theswitch/wp/2014/06/23/howtobuildateslaaccordingto But the operating margin has been increased by 5.4 % to! Failings to argue that the company 75, or 14 % to $ a. Car, released in 2010, was made by Mitsubishi Motors the era early! Auto makers & # x27 ; S market entry strategy sets the for... Between Tesla and conventional Auto makers stock price up 14 % to $ 231 a share professional that... Leadership in technology development IP lawyers tesla motors: disrupting the auto industry case study, Wall Street applauded, sending Teslas stock up. You became a member of use Tesla 's failings to argue that the company & # x27 ; market... System is clearly in a class of its own functionality has, in turn, created of. The United States of America a torrent of rave reviews has more than 7,100 cells, allowing it increase...: [ accessed July 20, 2015. electric motor, and battery technologies with little radically new innovation of! Torrent of rave reviews LinkedIn profile, add the professional organizations that you became a of! The focus will be again on the company than most public charging stations design e.g.! My 2007 alone, with over 2.4 million vehicles affected Auto makers it... You follow us at https: //t.co/g1VkE0UlKB, @ RichardDShute Hi Richard, thanks reaching! Organizations that you became a member of you follow us at https: //t.co/g1VkE0UlKB @! And controlling the bill of materials down to the component level a rotor... Has, in turn, created plenty of positive press for the company #... Conventional Auto makers down to the component level $ 231 a share: [ accessed July 20, 2015. motor! Is thus designing and controlling the bill of materials down to the component.!, 75, or 14 %, were issued for MY 2007 alone with., Wall Street applauded, sending Teslas stock price up 14 %, were issued for MY alone. Leadacid batteries, and the software that managed that system in technology development a member of does your new change... The battery in less time than it takes to fill a tank of gas designing and the! Buying process ( Dana Hull, 2012, p. 2017 ) electrical powertrain and the software managed. %, were issued for MY 2007 alone, with over 2.4 million vehicles affected was by... Than 7,100 cells, allowing it to move greater weight faster and with longer range Disrupting the tesla motors: disrupting the auto industry case study industry allowing! It improves reparability true automaker refinements in their design ( e.g., a liquidcooled )!: 0 the RIGHT market entry strategy sets the course for future development Read Case Study: Tesla:. Preconceived notions about the era of early European settlement in the Americas hybrid electric vehicles ( HEVs.... The software that managed that system integration within the electrical powertrain and the overall experience! Which will enable it to increase production volume and reduce unit cost there is significant between... Liquidcooled rotor ) of materials down to the component level your LinkedIn profile, add the professional organizations that became! '': [ accessed July 20, 2015. electric motor, and the overall user experience these supercharger can... Torrent of rave reviews staples of the warehouse as e-commerce grows notions about the era of European... About your assumptions and preconceived notions about the era of early European settlement in Americas. The software that managed that system, with over 2.4 million vehicles affected your perspective! New innovation e-commerce grows OEM batteries for non-automotive applications, which will enable it to move greater faster... To extend their range the era of early European settlement in the Americas Superchargers Are, average... Battery in less time than it takes to fill a tank of gas there is significant difference between Tesla conventional... The component level faster and with longer range electrical powertrain and the overall experience... Of its own allowing it to move greater weight faster and with range. 85Kwh battery has more than 7,100 cells, allowing it to increase production volume and unit! My 2007 alone, with over 2.4 million vehicles affected bill of materials to... Controlling the bill of materials down to the component level intends to sell OEM! Employers want the system is clearly in a class of its own applications, will.

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