Recovery of world automobile market
Government incentives for electric automobiles Competition from established automobile manufacturers and new entrants. Concentrated industrial structure and potential trade restrictions Strengths (these correspond to the bullet points above) Mature global network and world famous brand Tests Motors is an international company that runs its operation in 116 locations in 18 countries of five continents.
The global network can benefit Tests to attract more potential costumers and promote its brand by displaying the products and providing he test drive, and to receive the constructive feedback within a short time. According to Navigate Research, 22% Americans familiar the Tests Model S to some extent, coming third among all the popularity ratio of alternative fuel vehicle models in America. SAP Social Media Analysis suggests that Tests has the highest rate at around 150,000 social mentions during the second half of 2013.
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Cross-continental networks and the universal brand are the features that can make Tests more competitive in the electric vehicle industry (Tests Annual Report, 2014). The premium accelerating and driving range performance Compared with competitors in the electric automobile industry, Tests shows premium accelerating performance. Model S can accelerate to 60 miles per hour in 4. Seconds, and can reach the top speed at 130 miles per hour. By contrast, its strongest competitor, Ionians Leaf, needs 6. 9 seconds to speed up to 60 MPH, and can only attain the highest speed at 90 MPH. Tests also surpasses other electric vehicle competitors on the single-charge distance, which can cover the range of 300 miles with a single charge. On the contrary, the estimated distances of Ionians Leaf, Chevy Volt, and Ford Focus EVE per single charge are 73, 35, and 100 miles respectively (seagull, 2014). Limited manufacturing volume and strong dependence on the lithium batteries supplier Tests faces a potential shortage of deliveries.
According to Reuters, the global sale of Tests is 22,3000 in 2013, and expectedly to retain an increasingly growth rate in the ext five years, especially after Model X enters the market. However, the manufacture volume of Tests is currently around 20,000 annually. One of the main reasons for the supply deficiency is that Tests has a strong dependence on the Panasonic, its only lithium battery supplier. Every Tests vehicle contains more than 7,000 lithium batteries. When its sale increases to over 100,000, the battery demand may surpass the output capacity of Panasonic (Heron, 2013).
The shortage of supercharger stations in Chinese market Superchargers enable owners to travel for free between cities. Currently, Tests has established 164 supercharger stations, including 105 in North America, 50 in Europe, and 9 in Asia. The comparison between the station numbers of America and China is more dramatic, which are 104 and 2 (Beijing and Shanghai), respectively. In-auto- news point out that Tests sets the target sale at 5,000 in China's market in 2014, which is 30 percent of the expected total global sale.
Therefore, the only two superchargers, only about 1 percent of the total number, may restrict on the users experience in China, and may also have negative effects on the market promotion in other cities of China (Tests Annual Report, 2014).
With the recovery of economy, the world's automobile industry has been growing steadily over the past few years. According to Bloomberg, the US automobile sales climbed from its depth 10. 4 million in 2009 to over 15. Million in 2013. Furthermore, industry analysts predict that the sales will remain a growth trend in next five years, reaching 17 million in 2017. Things happened the same in Europe. During last year, Spain posted an increase of around 29 percent in the vehicle sales, Britain showed an increase of 8. 2 percent, and France expended its sales at 5. 8 percent. This constant recovery of the global automobile market creates a satisfactory market environment for Tests Motors to strengthen its profitability and realize market expansion (Elegant, 2014).
Government incentives for electric automobiles industry. The United States federal government approved the Energy Improvement and Extension Act of 2008 and the American Cleaning Security Act of 2009, providing ax credits for qualified electric automobiles. The fed further announced a bill to transfer the tax credit into rebate worth up to 7,500 dollars. In Europe, British government set 250 million pounds subsidy for purchase incentives in 2009, and German legislation passed a law that private owners could offset the list price up to 10,000 euros in 2010.
In Asia, Chinese government launched a series programs to provide the buyers could receive a maximum 60,000 ARM purchase incentives. The support to the electric vehicle industry will benefit Tests Motors in cutting cost and enlarging sales (Department of Energy, 2014). Treats (these correspond to the bullet points above) Competition from established automobile manufacturers and new entrants As the tendency of developing the alternative fuel vehicles, some traditionally automobile sellers have operated the electric vehicle production.
The EVE industry currently consists of 47 manufacturers, and has a total sale of 95,099 in 2013. The first three sellers are Ionians Leaf, Cherry Volt and Toyota Pries PHEW. Tests Motors comes the fourth, which sales 22,3000 cars worldwide. Many other existing leading automobile manufacturers, such as BMW, Volkswagen, enters or plan to enter the PEE racket during recent years. BMW Just introduced two models, 13 city and 18 sports car at late 2013, and e-Golf of Volkswagen will come to the to the PEE market very soon.
These new entrants may also occupy the market shares of the Tests in the future (Seagull, 2014). Concentrated industrial structure and potential trade restrictions Tests Motors focus on producing the automobile with 100 percent electric perpetration, and its product category comprises only three types, Roadster, Model S, and Model X. By contrast, BMW currently sales 27 types of vehicles, including traditional, electric, and hybrid cars. Because of such concentrated and narrow industrial structure, Tests may encounter potential threats when the tendency of vehicle market changes.
Moreover, many vehicle companies outside the America, like BMW, have entered the EVE industry. In order to protect and develop the domestic companies, European and Asian countries may set trade restrictions and tariff, which will negatively influence oversea promotion of Tests (Tests Annual Report, 2014). Conclusion Tests Motors is a well-known global electric automobile company with a constant development over the years. In order to increase sales and win market share, Tests must respond positively to internal and external issues.
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