Entering the Electric Car Market in Germany

Strategic Management

Scientific Study from the year 2008 in the subject Business economics - Business Management, Corporate Governance, grade: B, University of Canterbury, course: Strategic Management, language: English, abstract: Executive Summary Tesla wants to bring three electric car models on the German market; the Roadster in early 2009 and two future models in the following years. This strategic analysis is aimed at supporting Tesla in its management decisions to successfully launch these three models and gives advice on future strategy. It provides specific information on the German market and is divided into the analyses of critical success factors, emerging issues and trends and the support of innovation. Critical Success Factors It is most important to manage the cars' entrance into the market from the factory to the customer. This includes the choice of a strategic location for a future manufacturing facility that enables Tesla to produce higher quantities of the two future models, the distribution channel via importers and dealers, the marketing including advertisement and public relationships, and customer service. Pricing will be a success factor for the two future models. Emerging Issues and Trends Emerging issues can be considered on a global scale, most of them aren't specific to Germany. The major issue is the influence of the oil industry on the whole automotive sector. Transport experts predict that electric cars will be the successors of petrol cars; this is a threat for the existing industries and their established infrastructure. Supported are electric cars by the 'green' trend and changes which are made in environmental legislations by the German government and some city councils. Further support comes from the power industry which desires to launch the concept 'vehicle to grid'. This concept reduces energy generation and distribution issues and only works with an increasing number of electric cars. Support of Innovation Tesla can be innovative by developing electric cars for new market segments that are currently not yet served, due to limitations in battery technology. Hence, improving the existing battery technology will enable Tesla a variety of future options that secure being a leader in the electric car market, within Germany as well as globally. [...]