1. tesla
GROUP MEMBERS
KOH KOK HUI | REBECCA HENG |
NEO SHI JUN | ZHANG HAODONG
BUSINESS
COURSE INSTRUCTOR
DR. MOMO DERETIC
INTERNATIONAL!
in
The Philippines

2. tesla
PRE SE NTATI ON
AGE NDA
C O M P A N Y
A N A LY S I S
C O U N T R Y
A N A LY S I S
T R A D E
C O N S I D E R AT I O N S
K E Y
C H A L L E N G E S
P R O J E C T I O N S
Q U E S T I O N S &
A N S W E R S
R E C O M M E N D AT I O N S
?

3. tesla
COMPANY
ANALYSIS

4. tesla
C OMPANY
BAC KGROUND
a US-based company primarily involved in the
designing, development, manufacturing and
selling of electric vehicles and electric
powertrain components. !
company operates in North America, Europe
and Asia, is headquartered in Palo Alto,
California, and has employed 5,859 people !
recorded revenues of $2,013.5 million during
the 2013 financial year (FY2013), as
compared to $413.2 million in FY2012 !
80 sales and gallery locations in 116 locations
across North America, Europe and Asia!
operates a network of Superchargers in the US
and Europe to enable long distance driving !
C OMPANY
ANALYSIS

5. tesla
C OMPANY ANALYSIS
STRENGTHS
Strong market position
of Model S
Robust design and vehicle
engineering capabilities
Weak financial
performance
Safety concerns
with the
use of lithium-ion
battery cells
Supply
chain risk
WEAKNESSES
OPPORTUNITIES
THREATS
New product launches to
drive volume growth
Expansion in international
markets
Seasonality of
business
Stringent
regulations
Intense
competition
SWOT ANALYSIS

6. tesla
C OMPANY ANALYSIS
P R O D U C T
MODEL S 70D
fully electric, four-door, five-adult
passenger sedan that offers
compelling range and performance
with zero tailpipe emissions!
offers a range on a single charge of
up to 265 miles !
All-Wheel Drive Dual Motor Model S
accelerates from 0 to 60 miles per
hour in 3.2 seconds, making it the
quickest sedan in the world
according to Motor Trend magazine !

7. tesla
VALUE PROPOSITIONS
1
C OMPANY
ANALYSIS
2
an unique combination of
functionality, convenience, safety
and styling without compromising
performance and energy efficiency !
best in class storage space of 31.6
cubic feet and large seating !
advanced wireless connectivity,
driver customization of the
infotainment and climate control
systems of the vehicle !
3
lower cost of ownership with
competitively lower purchase price,
aggregated cost of fuel, lower cost
of maintenance and lower fuel costs !
4
platform architecture and
common electric powertrain
that can be leveraged to
create future electric
vehicle models !
5

8. tesla
C OMPANY ANALYSIS
TARGETING, SEGMENTATION &
POSITIONING
the upper and upper middle class business
professionals and executives or elites!
is conscious of luxury car ownership, image building,
long term cost-savings, eco-friendliness ideals, high
speed performance and state of the art technological
purchases. !
males who are into sports luxury cars but have a desire
for ecological ideals and do not wish to compromise
on driving performance.!
“More for More” for such a product for the elites. !
!

9. tesla
C OMPANY ANALYSIS
BUSINESS
MODEL
Direct sales business model in
which they sell their vehicles
directly to their customers through
online channels and direct to
customer retail stores!
1
2
Insurance policy subsciption
model – users pay for insurance
for replacement of battery!

10. tesla
KEY STRATEGIC
PARTNERS
Daimler supplies lithium ion
battery packs and charging systems
Capcom has also teamed up with Tesla
to bring gamers the Dark Void Tesla Roadster
Giveaway
TAG Heuer and Tesla joined forces
for a special edition of Roadster
Toyota and Tesla signed a contract to
build the power train for Toyota's electric Rav4
C OMPANY ANALYSIS

11. tesla
COMPETITORS
ANALYIS
Audi, BMW, Lexus and Mercedes! Electric Cars- BMW, General Motors, !
Mitsubishi Corporation, Porsche, Ford!
Toyota, Mitsubishi, Honda and Ford !
INTERNATIONAL COMPETITORS
DOMESTIC COMPETITORS
DIRECT COMPETITORS
INDIRECT COMPETITORS
Non- Electric Cars- Toyota & Honda!
C OMPANY ANALYSIS

12. tesla
COUNTRY
ANALYSIS

13. Philippines
C OUNTRY ANALYSIS
100 million POPULATION
good economic foundations and
a competitive workforce that is
globally recognized
Averaging about 5%, 7.2% growth in 2013
6.1% growth in 2014
Second fastest GROWING
Asia economy
C OUNTRY OVERVIEW

14. C OUNTRY ANALYSIS
Close ties with the US and
the country's foreign
policy FAVOURS PHILIPPINES
Increased risk of
terrorism
rampant corruption
within the countryPo l i t i c a l
P o s i t i v e N e g a t i v e
t h e r s
O
P o s i t i v e N e g a t i v e
strong business process
outsourcing (BPO)
abundant manpower with
English language skills
49% of high technology exports
out of all Manufactured
products
intellectual property rights
(IPR) is fairly comprehensive
Low RESEARCH AND
DEVELOPMENT and a lack of
innovation
C OUNTRY OVERVIEW

15. C OUNTRY ANALYSIS
NEW CAR S MARKE T
double digit growth over
the last three years
Market consumption
volume increased with a
CAGR of 11.4% between
2010 and 2014, to reach a
total of 90.3 thousand
units in 2014
market's volume is
expected to rise to 112.6
thousand units by the end
of 2019, representing a
CAGR of 4.5% for the
2014-2019 period

16. TRADE
CONSIDERATIONS
tesla

17. teslaTRA DE C ONSIDERATIONS
HOME C ENTRALIZATION
STRATEGY
TRA DE C OST
TRA DE BARRIER
TRA DE AGREEMENTS
EXC HANGE RATE

18. teslaTRA DE C ONSIDERATIONS
TRADE COST
(Exw + insurance + freight cost) x (1 +
custom duties) —Exw
Exw price: $72500
Freight cost: $2000-$4000
Insurance : 1.5%-2.5%
Custom duties: 30%
Trade Cost: (72500 + 4000)(1 + 0.025)(1 + 0.3)-72500 =
$ 29436.

19. teslaTRA DE C ONSIDERATIONS
TRADE BARRIERS
- no specific quota for importing cars
-(China.org.cn, 2015) only on agricultural
products (especially with China)

20. teslaTRA DE C ONSIDERATIONS
TRADE AGREEMENT
(US Department of State, 2015). tax
reductions, bilateral trade agreement, tariffs
agreement under the scheme of the Most-
Favored-Nations Treatment (MFN)

21. teslaTRA DE C ONSIDERATIONS
EXCHANGE RATE
CONSIDERATIONS
-maintain strong trade relations with the US

22. PROJECTIONS
tesla
KEY
M A R K E T S U P P LY
M A R K E T D E M A N D

23. teslaKEY PROJECTIONS
0
20000
40000
60000
80000
100000
120000
140000
160000
2013 2014 2015 2016 2017
SUPPLY (CAPACITY OF PRODUCTION)
DEMAND
• Tesla uses a direct dealership
• Tesla does not store any inventory
• Vehicles manufactured when ordered
MARKE T SUPPLY
PROJECTIONS

24. teslaKEY PROJECTIONS
MARKE T SUPPLY
PROJECTIONS
• Tesla could potentially produce up to 150,000
cars by 2017
• Surpassing the current amount of demand
• Excess capacity to export to other parts of the
world

25. teslaKEY PROJECTIONS
MARKE T DEMAND
PROJECTIONS
P x N x W = MV
P= Potential number of customers
N= Number of purchases per year
W= Average wholesale price
MV= Market Value
Identity Competitor
• Porsche AG
Number of Porsche sold in Philippines
• Approximately, 192 units per annum
Assuming Tesla is priced competitively alongside Porsche
we project the amount of Tesla within a year to be 192.

26. teslaKEY PROJECTIONS
MARKE T DEMAND
PROJECTIONS
P x N x W = MV
P= Potential number of customers
N= Number of purchases per year
W= Average wholesale price
MV= Market Value
Using the formula P x N x W = MV,
Potential Market value = 192 x 1 x 101,936
= US$19,571,712
Projected Market value = 19,571,712 x 80%
= US$15,657,369.60

27. teslaKEY PROJECTIONS
MARKE T DEMAND
PROJECTIONS
Market Value Projection over 3 years
15,657,369.
00!
21,262,707.
00!
28,874,757.
00!
0.00!
5,000,000.00!
10,000,000.00!
15,000,000.00!
20,000,000.00!
25,000,000.00!
30,000,000.00!
35,000,000.00!
1st year! 2nd year! 3rd year!

28. PROJECTIONS
tesla
KEY
C O S T O F I N V E S T M E N T

29. teslaKEY PROJECTIONS
C OST OF INVESTMENT
PROJECTION
-Operating Expense
-Cost of Sales
- Setup Cost of Showrooms/
Galleries
OPERATING EXPENSE

30. teslaKEY PROJECTIONS
C OST OF INVESTMENT
PROJECTION
-Operating Expense
-Cost of Sales
- Setup Cost of Showrooms/
Galleries
C OST OF SALES

31. teslaKEY PROJECTIONS
C OST OF INVESTMENT
PROJECTION
-Operating Expense
-Cost of Sales
- Setup Cost of Showrooms/
Galleries
SE TUP C OST OF GALLERIES

32. teslaKEY PROJECTIONS
C OST OF INVESTMENT
PROJECTION
-Operating Expense
-Cost of Sales
- Setup Cost of Showrooms/
Galleries
C ONSOLIDATED ESTIMATE
25MILLION

33. CHALLENGES
tesla
KEY

34. tesla
KEY C HALLENGES
C URRE NT M A R K E TING OB JEC TIVE S
Increase demand
Establish brand recognition
Permit Customer inputs on
developmental process
Manage existing customers
and build up loyalty
1
2
3
4

35. tesla
KEY C HALLENGES
MA RKE TING, SA LE S & PROMOTI ON
Global network of galleries and showroom
Highly visible, premium outlets
Specialised staff,
no external dealership

36. tesla
KEY C HALLENGES
C HA RGING STATI ON INFRASTR UC T URE
Manila Electric Company has started
creating charging stations and Tesla
could tap into this growing infrastructure

37. tesla
KEY C HALLENGES
SAFETY ISSUES
There are safety concerns of Tesla
cars catching fire
However, such incidents are very
rare and the company has one of the
best car safety standards

38. REC OMMENDATIONS
OVERALL
tesla

39. tesla
RECOMMENDATIONS
SHOR T
R UN
LO NG
R UN
ENTER
BRIN G OVER M ODEL 3
SE TTING UP OF ASIA PLA NT
To c a p t u r e a l a r g e r m a r k e t s h a r e b y r e a c h i n g
t o t h e m i d d l e i n c o m e p o p u l a t i o n
To g a i n a f o o t h o l d i n A s i a a n d t a p o n P h i l i p p i n e s
L o w e r l a b o u r c o s t a n d h u m a n c a p i t a l
C o n d i t i o n s a n d r e s e a r c h h a s r e v e a l e d l a r g e l y
f a v o u r a b l e c o n d i t i o n s

40. tesla
in
The Philippines
ANSWERS
QUESTIONS
&