GERENCIA DE MERCADEO

RONALDO MENDOZA
ANDREA PARRA
LAURA ORTIZ
MARIANA MUÑOZ
ALEJANDRO MIGUEZ

CHÍA

2019

INVESTIGACION TESLA MOTORS

COUNTRY SCAN.

India is a sovereign country, located in southern Asia; in this country they inhabit
approximately 1240 million inhabitants, being this the second largest country in population of
the world.
Today in India it is possible to buy a high-end car, because it has generated great growth in
the automotive industry; This is the ninth largest in the world, and India itself is known as the
fourth largest exporter of cars.

In India there are a variety of automotive companies, the most demanded by the population
of this country are:

● Tata Motors: is a multinational automobile company based in Mumbai. In recent

decades it has remained the undisputed leader in the commercial vehicle segment. It
is also the third largest producer of passenger cars in India. This car company in
India is listed on the Bombay Stock Exchange and the New York Stock Exchange.
The income obtained by Tata Morts in 2010 represented $ 20,572 million. Some of
the most well-known cars manufactured by Tata Motors are: Tata Indigo, Tata Indica,
Tata Sumo, Tata Indigo Marina and Tata Safari.

● Hindustan Motors Limited: Hindustan Motors was the pioneer in the manufacture
of automobiles in India. The company represented a sales volume of Rs 150.66
million in 2010. Some of the major automobiles and multi-utility vehicles
manufactured by Hindustan Motors Limited include: Mitsubishi Lancer, Trekker,
Contessa, Ambassador, Porter, Pushpak and Mitsubishi.

● Ashoke Leyland: is a leading manufacturer of commercial vehicles in India. It was

established in 1948. Over the years, the company has become synonymous with the
production of trucks, passenger buses and emergency military vehicles. Some of the
popular products of this company are: Panther BS-II for multi-axis vehicles, Cheetah
Bus-III, tractors and Ecomet, Lynx BS-II, diesel and natural gas groups from 15 KVA
to 250 KVA.

● Maruti Suzuki India Limited was established in 1981. A part of this company is
owned by Suzuki Motor Corporation of Japan. It is the largest passenger car
manufacturing company in the country. Accredited for having brought the automobile
revolution in the country. Based in Delhi, this automobile company in India is the
largest producer and shareholder in the automobile market.

● Hyundai Motor India Limited is owned by Hyundai Motors of South Korea. This car
company in India is also the largest exporter of passenger cars in India. Some of the
popular cars manufactured by this company are; Santro, Getz Prime, Hyundai i10,
Hyundai i20 Accent and Verna and Sonata.
 ● Bajaj Auto is another important automobile manufacturing company in India. It is one
of the most reliable car manufacturers in India. Today, Bajaj Auto has become
synonymous with two- and three-wheelers in the country. Some of its popular two
wheels are; Press 220DTS and Kawasaki Ninja 250R.

The market of Indian automotive has strengths within this context and they are, they have a
large internal market, the government provides monetary aid and the labor cost is reduced.
The weaknesses are structural problems, low investment in research and development in
the country, the government collects many taxes. The opportunities within India in this sector
are the rural demand is increasing, the income per person every day grows more; and finally
there are the threats and this is where the competences that are nowadays in this sector are
located.

COMPANY BACKGROUND
Tesla, Inc is an American automotive and energy company. The have multiples
plants of production. They sell the Model S, Model X and Model 3 in vehicles,
Powerwall and Powerpack in batteries, solar panels and solar roofs.
Tesla was founded in July 2003, by engineers Martin Eberhard and Marc
Tarpenning, under the name Tesla Motors. The company was joined by Elon Musk,
J. B. Straubel and Ian Wright, the co-founders of the company. After 10 years in the
market, Tesla is rank as the world's best-selling car manufacturer in 2018.
Tesla's primary goal was to commercialize electric vehicles, starting with a premium
sports car but then they move to vehicles more mainstream like sedans. Tesla's
technology strategy focuses on electric technology.
Tesla aims to change the automotive industry by creating many innovative pieces
that fit together; this strategy was called "complex coordination" by Peter Thiel.
Tesla's sales strategy is to sell its vehicles online and in company-owned showrooms
rather than through a conventional dealer network.
In United States, Tesla operates in stores, usually in malls. But customers only buy
their vehicles from the website. The stores function as showrooms, where the people
learn from each product Tesla have.
Tesla's strategy of direct customer sales is very different from standard vehicle
market. Tesla is the only automaker that sells cars directly to consumers.
Tesla has many technology devices, like batteries, electric motors, sensors, and
artificial intelligence.
Motors: Tesla makes two kinds of electric motors. One used for the Model S and
Model X, and the other used for Model 3 and Semi. Motors for the Model S and
Model X are made at Tesla Factory, while motors for Model 3 are made at
Gigafactory 1, Tesla factory that focused only creating lithium-ion batteries.
Model S: enter to the market in June 22 from 2012 in United States, and during the
next years it enters to Europe, Australia and China. From 2019, this model has some
modifications, the Model S with 500 km, the Model S Extended Range with 539 km,
and the Model S Performance with 507 km. Some of the awards that this model has
won are the “World Green car” in 2013, “car of the year” in 2013 and the best 25
inventions of the year in 2012 from de Tome Magazine.
Model X: this model enters to the market in September 2015, one of the
characteristics that this model have is that their doors are falcon wings, that are the
doors that open vertically. In the next year this model was rank as one of the tops
selling in electric cars in Norway.
Model 3: Is the third-generation car of the company. They were called at first as
model E, but ford launches also a Model E, so Musk preferred to call it Model. This
model from 2018 is in the topped of the electric cars sales in United Sales.
In terms of batteries, Tesla created Powerwall for the home and Powerpack is
industrial battery.
Tesla have made around the world, in United States, in the major cities, not only
creating showrooms but also all the factories that Tesla need, not only for create
vehicles but also de batteries and the motors. In Europe, their principal point is
Amsterdam, but around all the continent Tesla stores, factories and some
development offices. In Asia and Australia, the company only have a few showrooms
and one factory for each
Consumer analisis
Target market for the product:
individuals looking for a high performance electric car, mostly successful business
executives and entrepreneurs, mostly wealthy early adopters (upper middle class)
Young professionals, eco-friendly, looking for their first luxury car.

Consumer demographics:

Average income

The average household income of a Tesla owner is $143,177 per year. As a

comparison, the median household income in the United States in 2017 was $61,372
Tesla owners are an older demographic.

Average age

The median age of a Tesla owner is just under 54 years old, compared to 38 for the
US population.

The median age of a Tesla SUV owner is 52 years old.

Average gender:
We looked at the gender of current Tesla owners, including Model S and Model X.

Owners of the Model X have a higher percentage of women owners. Women own
29% of Model X vehicles and men own 71%. The Model X is a gull-wing SUV
(according to Tesla) or CUV

Home ownership: We looked at the gender of current Tesla owners, including Model
S and Model X.

Owners of the Model X have a higher percentage of women owners. Women own
29% of Model X vehicles and men own 71%. The Model X is a gull-wing SUV
(according to Tesla) or CUV

Others:

Tesla owners tend to not have children in the home. 66% of all current Tesla owners
don’t have any children in the home, vs. 34% who do have children in the home.

The ethnicity of Tesla owners skews toward Caucasians, at 87%. Owners who
identify with Hispanic ethnicity make up 8% of Tesla owners, leaving 5% to other
ethnicities.

How do they shop:

The youths of India remain loyal to shopping in person. 78% of young people
surveyed said they will continue to shop in-store at least to the same extent as now
or more, compared to 69% of older shoppers. In fact, 51% of youths said they will
visit shops more. This is significantly more than the older age group (22-65 year
olds), where only 28% said they will use shops more.

Physical shops are seen to give credibility to retailers in India, particularly by youths:
44% of young people and 32% of the older age group state that they only buy from
online shops that also have physical stores.

Social shopping looks set to increase in India, with more than half of young shoppers
(56%) saying they would shop socially more often in future compared to 32% of
adults. Overall, 88% of youths and 73% of adults say they will shop socially the
same amount or more than they do now.
Consumers research first, then visit stores

Youths prefer to “webroom” – research an item online before going in-store. 86% do
this as opposed to 73% who “showroom” – research in-store and then buy online.
Adults also prefer to webroom – 83% do this as opposed to 68% who showroom.

What’s important to consumers when they shop

Overall, lower prices and improved delivery were most important to all age groups
when they shop. However, lower prices, easier refunds/returns, improved service,
greater choice and more omnichannel options were more important to older
respondents.

Most online shopping in India takes place on laptops or desktops

Of the devices used to research the purchase, mobile, tablet and desktop use is
similar between youths and adults in India, although use of mobile phones is
consistently higher among youths when it comes to groceries. When it comes to
paying online, the majority of online transactions take place on a desktop or laptop.

Expectations of an integrated experience

Indian youths have higher expectations concerning the integration of online and in-
store services. 70% of youths expect support in-store if they have bought online,
compared to 63% of adults.

Different shopping habits of the different age groups

According to our survey, adults are more conscious of the ingredients in the food
they eat, and enjoy grocery shopping more than youths. Young people are more
likely to buy fashion items online, and state that they shop less often but spend more
when they do.
Educational levels:
1. Pre Primary Stage

Pre primary education in India is provided to children between 3–6 years by

Kindergarten, Playway or Play Schools. These schools have varying terminology
for different levels of classes, beginning from – Pre-Nursery, Nursery, KG, LKG
(Lower Kindergarten) and UKG (Upper Kindergarten). Most of the pre-primary
education in India is provided by private schools.

2. The Primary Stage

Primary education in India offered by both private and government schools

usually consist of students aged between 5 to 12 years. The duration of study in
this stage is 4-5 years. Common subjects include English, Hindi, Mathematics,
Environmental Science and General Knowledge. Sometimes also termed as
Elementary Education, it is free in government schools but it is paid in the private
schools. The Government has made elementary education compulsory for
children between the age group of years 6 and 14. Most of the primary education
provided by primary schools in India is imparted from class 1 st to class 4th or 5th.
Some of the states/UTs which follow 1 st to 5th class of primary education are
Andhra Pradesh, Arunachal Pradesh, Bihar, Haryana, Himachal Pradesh, Jammu
& Kashmir, Madhya Pradesh, Manipur, Orissa, Punjab, Chandigarh, Delhi,
Karaikal and Yanam regions of Pondicherry etc. Some of the states/UTs which
follow 1st to 4th classes of primary education are Assam, Goa, Gujarat, Karnataka,
Kerala, Maharashtra, Meghalaya, Mizoram, Nagaland, Dadra & Nagar Haveli,
Daman & Diu, Lakshadweep and Mahe region of Pondicherry

3) The Middle Stage

Middle stage of education covering 3-4 years of academic study is formed by 5 th-
8thclass consisting of students aged between 12 to 14 years. The schools which
impart education up till 8 th class are known with various names like – High School,
Senior School. Some of the states/UTs which follow 5 th -7th class of middle stage are
Assam, Goa, Gujarat, Karnataka, Kerala, Dadra & Nagar Haveli, Daman & Diu,
Lakshadweep etc. Some of the states/UTs which follow 6 th -8th class of middle stage
are Arunachal Pradesh, Haryana, Madhya Pradesh, Punjab, Andaman & Nicobar
Islands, Chandigarh, Delhi etc.
4) The Secondary Stage

Secondary Stage of education covering 2-3 years of academic study starts with
classes 8th-10th. consisting of students aged between 14-16 years. The schools
which impart education up till 10th class are known as Secondary Schools, High
Schools, Senior Schools etc. Some of the states/UTs which follow 8 th -10th class of
secondary stage are Goa, Gujarat, Karnataka, Kerala, Dadra & Nagar Haveli,
Daman & Diu, Lakshadweep etc. Some of the states/UTs which follow 9 th -10th class
of secondary stage are Punjab, Rajasthan, Sikkim, Tamil Nadu, Andaman & Nicobar
Islands, Chandigarh, Delhi, Karaikal region of Pondicherry etc.

5) Senior Secondary Stage

Senior Secondary Education in India is of only 2 years. There is uniformity on this

level of education in terms of duration and classes i.e. all the States/UTs follow this
10+2 pattern. Senior Secondary Schools in India include classes 11 th to 12th.
consisting students aged between 16-18 years. At this level of education students
have the freedom to choose their preferred stream and subjects. They can pursue
Arts, Commerce, Science (medical & non medical). The schools which provide
education up till 12th class are commonly known as Senior Secondary Schools or
Higher Secondary Schools. Some universities and colleges also offer the education
of these classes.

6) Undergraduate Stage

Undergraduate education in india is of 3-4 years. Undergraduate stage of education

is also known as higher education in india. Students studying in this level, generally
begin their education from 18 onwards. As per one estimate 88% of undergraduate
education is provided by Colleges in india. Majority of the undergraduate courses of
3 years duration belong to field of arts, humanities, science etc. and majority of 4
years of duration belong to the field of agriculture, engineering, pharmaceutical
sciences technology. However, there are courses belonging to fields of architecture,
law and medicine whose duration is 5 years.
7) Postgraduate Stage

Postgraduate education in india is of 2-3 years. Postgraduate stages of courses are

known as Masters courses or Doctorate courses. Masters course are usually of 2
years duration and doctorate (research) courses are of 3 years duration. Also
referred as higher education, 56% of post-graduate education is imparted through
colleges. PG education in india is largely provided by universities in india. PG
education caters largely to a specific field or sub field of any preferred discipline.
Thus, one can specialise in any of preferred subjects at this level. Those who are
interested in conducting large amount of research work pursue these courses.

Adult Education in india

Adult Education in india comes under the purview of the Department of School
Education and Literacy. The Bureau of Adult Education and National Literacy
Mission under the Department functions as the Secretariat of the National Literacy
Mission Authority (NLMA). National Literacy Mission was set up on 5th May,1988 to
impart a new sense of urgency and seriousness to adult education. The Directorate
of Adult Education provides necessary technical and resource support to the NLMA.

Distance Education in india

Distance education provided by institutes is controlled by the Distance Education

Council of India. Distance education is helpful to those who cannot join regular
schools or colleges. At the school level, National Institute of Open Schooling offers
education through distance learning. While, at the college or university level, Open
universities provides distance education. Distance education can also be pursued
online via internet. Some like the Birla Institute of Technology and Science (BITS)
provides online education through – BITS Virtual University.

Homeschooling in India

Homeschooling isn’t widespread in India and neither it is widely accepted. This type
of alternative education It is considered for handicapped or those who are unable to
attend regular school due to various factors. While some use Montessori method,
Unschooling, Radical Unschooling, Waldorf education or School-at-home. Others
prefer CBSE, NIOS or NOS and IGCSE prescribed syllabus.
How do they pay cash / credit:
Indians have likely reverted to their old habit of paying by cash for small purchases
with currency circulation improving to near pre-demonetisation levels, indicates an
analysis of credit and debit card usage in the previous financial year.

Debit card payments raced past credit card usage in the months immediately after
demonetisation in November 2016 that sucked out about 85% of the cash in
circulation. With debit cards accounting for about 96% of all payments cards in use in
the count. Credit card security deters consumers from online shopping
60% of youths and 46% of 22-65 year olds list security of their credit card or
personal details as the main reason they would not buy online, while 39% of both
age groups give cost of delivery as the reason.

Indians like using cash and are using it more than before the November 2016
demonetisation. According to data from the Reserve Bank of India analysed by the
India Times, ATM withdrawals recorded a 22% increase in April 2018 from the
previous year, reaching 2.6 lakh crore. In comparison, cash withdrawals accounted
for 2.2 lakh crore in the months leading to demonetisation.

Debit card usage is also up, showing that Indian consumers are comfortable with the
flexibility of choosing whichever payment method best applies to their needs. In fact,
debit card usage at point-of-sale (PoS) terminals grew by 24% compared to 2017.
Contrary to cash however, debit card usage was very low – almost 50% less prior to
Modi’s demonetisation policy.

NCR Corporation’s Managing Director for India, Navroze Dastur confirmed that there
is a surge in ATM usage and that “the average number of transactions per machine
also significantly grew.

Analysts believe that this trend will continue – where cash and debit card usage grow
in parallel – thanks to positive economic forecasts. Unfortunately, despite growing
demand for cash and increased ATM usage, the number of deployed ATMs has not
increased to meet demand.

What type of industries sell the most:

· Textile Industry

This industry covers a wide range of activities ranging from generation of raw
materials such as jute, wool, silk and cotton to greater value added goods such as
ready made garments prepared from different types of man made or natural fibres.
Textile industry provides job opportunity to over 35 million individuals thus playing a
major role in the nation's economy. It has 4 per cent share in GDP and shares 35%
of the gross export income besides adding 14% of value addition in merchandizing
sector.

· Food Processing Industry

In terms of global food business, India accounts less than 1.5% inspite of being one
of the key food producing nations worldwide. But this on the other hand also
indicates the enormous possibilities for the growth of this industry. Supported by the
GDP estimates, the approximate expansion of this sector is between 9-12% and
during the tenth plan period the growth rate was around 6-8%. Food Processing
Industry provides job opportunities to 1.6 mn people and it is estimated to expand
by 37 mn by 2025.

· Chemical Industry:

Indian Chemical industry generates around 70,000 commercial goods ranging from
plastic to toiletries and pesticides to beauty products. It is regarded as the oldest
domestic sector in India and in terms of volume it gives a sense of pride to India by
featuring as the 12 largest producer of chemicals. With an approximate cost of $28
billion, it amounts to 12.5% of the entire industrial output of India and 16.2% of its
entire exports. Under Chemical industries some of the other rapidly emerging
sectors are petrochemical, agrochemical, and pharmaceutical industries.

· Cement Industry:

India has 10 large cement plants governed by the different State governments.
Besides this India have 115 cement plants and around 300 small cement plants.
The big cement plans have installed competence of 148.28 million tones per annum
whereas the mini cement plants have the total capacity of 11.10 million tonnes per
annum. This totals the capacity of Indian cement industry at 159.38 million tonnes.
Ambuja cement, J K Cement, Aditya Cement and L & T Cement are some of the
major steel companies in India.

· Steel Industry:

Indian Steel Industry is a 400 years old sector which has a past record of
registering 4% growth in 2005-06. The production during this period reached at 28.3
million tones. India steel industry is the 10th largest in the world which is evident
from its Rs 9,000 crore of capital contribution and employment opportunities to
more than 0.5 million people. The key players in Steel Industry are Steel Authority
of India (SAIL), Bokaro Steel Plant, Rourkela Steel Plant, Durgapur Steel Plant and
Bbilai Steel Plant.
 · Software Industry:

Software Industry registered a massive expansion in the last 10 years. This industry
signifies India's position as the knowledge based economy with a Compounded
Annual Growth Rate (CAGR) of 42.3%. In the year 2008, the industry grew by 7%
as compared to 0.59% in 1994-95.

· Mining Industry:

The GDP contribution of the mining industry varies from 2.2% to 2/5% only but
going by the GDP of the total industrial sector it contributes around 10% to 11%.
Even mining done on small scale contributes 6% to the entire cost of mineral
production. Indian Mining Industry provides job opportunities to around 0.7 million
individuals.

· Petroleum Industry:

Petroleum industry started its operations in the year 1867 and is considered as the
oldest Indian industry. India is one of the most flourishing oil markets in the world
and in the last few decades has witnessed the expansion of top national companies
like ONGC, HPCL, BPCL and IOC.

How do they spend their money:

Food constitutes the basic prerequisite of every household irrespective of the
apparent divide. Statistics have described that the lowest income group spends
approximately 53.27% on food and beverages while the higher income group
occupies 11.88% of the chart. The aforementioned graphic also explains that
expenditure on food and beverage decreases proportionally with an increase in the
living standard. The poor, figuratively, spend more on food than other probable
sectors.
 Buying a house in India for low income groups seems like a remote dream. The
expenditure of such families on the housing sector rests at 5.62% while the
bourgeoisie invests in property instead, for which they occupy 38.89% on the chart.

Not much of a difference has been observed in the housing and transport sectors per
say. Low income groups spend a mere 3.85% of their total expenditure on transport
while the rich contribute to 20.20% of this sector.

Unfortunately, there isn't much we can write about the dismal literacy rate and health
concerns in India for a basic comparison of the acclaimed luxuriant sectors explain
that citizens, irrespective of their financial status, attribute a considerable amount of
their income to basic essentials than education and medicine. The graphic, above,
delineates the deplorable figures which constitute the health and education chart.
Meanwhile, here's a graphic which elucidates what citizens are left with after
spending on luxuriant sectors.
PESTLE analysis
Political:
India is a federal Republic state based on a parliamentary democracy. The
government is divided into two main branches: Executive power and Legislative
power. Executive power is conformed by the president which is the chief of state and
is elected by an electoral college consisting of elected members from every
parliament houses and the legislatures of provinces (Santander, 2019). Also the
Prime minister is chosen by the parliamentary members, following legislative
elections to serve for 5 years. On the other hand, the legislative power is bicameral.
The parliament is made up by Council of States and the People’s Assembly.
According to Portal Santander (2019); the main political parties in the country as well
as their backgrounds, political preferences and intellectual inclinations are:
Bharatiya Janata Party (BJP): right-wing, pro-Hindu, nationalist ideology; heads the
National Democratic Alliance (NDA) coalition; more than doubled its number of seats
in the 2014 elections, securing its first majority victory; - Indian National Congress
(INC): centre-left; a major party involved in the independence movement; heads the
United Progressive Alliance (UPA) opposition coalition; recently suffered from a
number of corruption scandals and accusations of economic mismanagement;
-Bahujan Samaj Party (BSP): India's third major political party whose electorate is
mainly composed of Dalits and low castes.
Other notable parties: - All India Anna Dravida Munnetra Kazhagam (AIADMK):
centrist - All India Trinamool Congress (AITC): centre-left - Biju Janata Dal (BJD):
centre-left - Shiv Sena (SS): far-right - Telugu Desam Party (TDP) - Telegana
Rashtra Samithi (TRS)
(Santander, 2019)
The current President is Ram Nath Kovind (since July 2017) – BJP and the Prime
Minister is Narendra Damodardas Modi (since 26 May 2014) – BJP. This
government has shown a huge interest in stimulating the foreign investment, as well
as the internal investment. Most of their policies are in fact, reforms to improve the
business climate and build a strong economy. Plus, the number of seats that the BJP
party counts with (a right-wing party) reassures foreign investors with stable policies
that favor them in order to keep safe their capital. However, this year are the
legislative elections (April to May) so this might cause a bit of uncertainty among
local and external investors. Fact is that Legislative branch has so much importance
due to their power to elect the Prime Minister which is an important key in making
laws and reforms. So in case that a political party with bad reputation/different
political inclinations gains power, India may experience an economic slowdown due
to uncertainty and changes in policies.
Economic:
In the last few years Indian economy has grown up to 6,9% because of an important
rebound industrial activity, more specifically the manufacturing, construction and
agriculture. India’s fiscal deficit overtook the budget estimate for 2017/18 almost by
96.1% due to revenue realization and rise in expenditure. The average retail inflation
has declined to a six-year low 3.3% and the economy keeps on moving to a stable
price regime. (Santander, 2019)
Prime Minister Narendra Modi followed his reform programme in 2017 in order to
consolidate public accounts promoting this way external and internal investment, as
well as industrial development to improve business climate (Santander, 2019). Plus,
since the election the new government has focused on various economic reforms to
stimulate foreign direct investment caps in some sectors. (Santander, 2019) The
most shocking decision taken by this new government was to declare that India’s
highest denomination banknotes would no longer be legal, so it ought to be
deposited in banks. This measure was made for tackling the black market and get
positive effects on the overall Indian economy. Even though this positive scenario,
long-term significant challenges are ahead such as: Inefficient power generation and
distribution system, ineffective enforcement of intellectual property rights, deficient
infrastructure, lacking non-agricultural employments opportunities, high spending
and poorly targeted subsidies, rural-to-urban migration and quality basic and higher
education opportunities are too meager (Santander, 2019).
1 Table 1: Main indicators. Source: IMF – World Economic Outlook Database,
October 2018. Taken from: Portal Santander, 2019
Main Indicators 2016 2017 2018 (e) 2019 (e) 2020 (e)
GDP (billions USD) 2,273.56 2,602.31 2,689.99 2,957.72 3,258.88
GDP (Constant Prices, Annual % Change) 7.1 6.7 7.3 7.4 7.7
GDP per Capita (USD) 1,749e 1,976e 2,016 2,188 2,380
General Government Balance (in % of GDP) -7.3 -6.7 -6.6 -6.5 -6.4
General Government Gross Debt (in % of
GDP) 69.5 71.2 69.6 68.1 66.5
Inflation Rate (%) 4.5 3.6 4.7 4.9 4.6
Current Account (billions USD) -14.35 -48.66 -80.42 -74.02 -79.21
Current Account (in % of GDP) -0.6 -1.9 -3.0 -2.5 -2.4
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total
Employment) 41.6 23.9 33.5
Value Added (in % of GDP) 15.5 26.3 48.9
Value Added (Annual % Change) 3.4 5.5 7.7
2 Table 2: Breakdown of economy activity sector based. Source: World Bank. Taken
from: Portal Santander: 2019.
Social
There are too many factors to consider at the moment of doing business in India.
Even though English is widely spoken, India is a multilingual, multi-ethnic and
pluralistic society and there are vast cultural differences between North and South
India. Plus, generalizations are something to be aware and it is offensive por the
people.
In general terms, Indians give so much importance on using formal titles. Also, using
Mr. /Mrs. Or the suffix Ji when addressing a colleague or someone senior is
preferred. (UK India Business council, 2015) Business dress code consists of
comfortable clothing. Women are advised to wear trouser suits. Men usually wear
lightweight suits with or without ties (depending on the sector). English is one of the
India’s official langue and is widely spoken in business. In specific, Indians have
issues with saying “no” as it could be misunderstood. Instead they would rather to
use another statement (“I’ll see”, “Yes, but it might be difficult”) to replace this word
and still be kind. For instance, rephrasing the questionswhen there is resistance or
evasion is key to provide a more meaningful response from an Indian (UK India
Business council, 2015).
Plus, Indians may change arrangements several times and may not confirm the
appointment until the day itself, yet punctuality is expected, meetings start and finish
late and negotiations could be slow. However, it is too important for an Indian to be
patient and demonstrate good character. Finally, Indians value relationships, so it’s
necessary to take the time to develop contact and confidence.
Technological
* India has the third-largest scientific and technical manpower in the world with 162
universities, 4,000 doctorates degrees, and 35,000 post graduate degrees annually.
* India’s medical technology sector forecasted to reach US$ 9.6 billion in 2022 and
US$7.8 billion in 2020.
* India belongs to the top-ranking countries in the basic research field.
* India was ranked 13 in 2017 by Nature Index which publishes ranks based on high-
quality research outputs based on natural sciences.
* India is the second highest contributor because IBM’s inventors contributed over
8000 patents in 2017.
* India is world’s third largest technology start up hub with incorporation of 1,000 new
companies in 2017.
* Atal Innovation Mission along with MyGov launched “Innovate India Platform” to
provide a common point for all the innovation happening across India.
* India Space Research Organisation (ISRO) launched space technology incubation
center was launched in Tripura, Agartala.
(IBEF, 2019)
Legal
In India, the FDI (Foreign Direct Investment) is the policy issued by the Department
of Industrial Policy and Promotion. This big one is under the aegis of the Ministry of
Commerce and Industry, government of India. A few sectors such as insurance, real
state, non-banking financial corporation, and so on are regulated by rules, regulation
and circulars issued by the FDI and the India’s Central bank. The new government
has tried to further liberalise India’s FDI policy to attrack greater foreign capital.
While the investment thing is controlled by the FDI, the income tax in India is
governed by a Central legislation “the (Indian) Income tax Act, 1961, while indirect
taxes such as value added tax, customs and excise duty are subject to both Central
and State laws” (UK INDIA, 2019). Thou, government has announced that the
current tax rate (30%) would be progressively reduced to 25% during the next 4
years. “On the indirect taxes front, a comprehensive Goods and Services Tax (GST)
is likely to be introduced in India in 2016. This will go a long way in reducing
complexity and eliminating multiple taxation” (UK INDIA, 2019).
The court system in India is three tiered, composed by the lower District court, the
High Courts and the Apex Court. “The choice of dispute resolution mechanism can
have significant commercial, financial and legal consequences and investors should
consider the advantages and disadvantages of each mode of dispute resolution, be it
litigation before Indian courts or arbitration” (UK INDIA, 2019).
There are different state specific rules formulated by the Centre to regulate the
employment in India. These laws vary depending on the State where the operation
will be located. Finally, India’s competition Act 2002 prohibits and/or regulates atni-
competitive agreements, abuse of dominant position and combinations. This act is
must to be cautious with, because it controls appreciable adverse effect on
competition among the relevant markets in India.
Environmental
Some of the major environmental concerns confronting India include:
* Air pollution from industrial effluents and vehicle emissions
* Energy-related environmental problems such as, chemical & oil pollution and
Greenhouse Gas (GHG) emissions (Greenstone and Hanna, 2014)
* Water pollution from raw sewage, the lack of adequate sanitation, and nonpotable
water throughout the country; 2 2 Journal of International Business and Law
* Municipal solid waste management (MSWM) remains a challenge for India due to
the rising population and the resultant infrastructural needs (Dube, Nandan, and
Dua, 2014)
* Over-population and its strain on natural resources
* Agricultural factors such as, runoff of agricultural pesticides, overgrazing, short
cultivation cycles, slash and burn practices, destructive logging practices, and
deforestation of timber reserves for fuel, all contribute conjointly to the decimation of
the subcontinent's environmental system (Greenstone and Hanna, 2014)
(Chandra, 2015)

SWOT ANALYSIS

Strenghts Weakness
Innovative processes & technologies Limited market presence (strong
(adopted by other companies). markets on US & China).
Strong brand perception. Limited supply chain.
Strong control (automated processes). High product prices.
Political and governmental support (US Poor liquidity (compared to other car
energy department). manufacturers).
Monopoly like market (electrical Capacity issues (1 production plant
vehicles). limited to 500 000 vehicles).
Great leadership (Elon Musk). Low accuracy on demand forecast.
Own distribution channel. Poor customer awareness.
Strong distribution & dealer community.
Consumer training
Brand portfolio.
Merging & acquisitions.
Customer satisfaction.

Opportunities Threats

Global sales expansion on growing Aggressive competition.

economies. Fluctuation in material prices.
Global supply chain expansion à Dealership regulations (in
specific
decreasing costs. states of the US).
Business diversification. Rising pay level.
Preferences for new technologies. Currency fluctuation (due to
international presence).
Policies among different countries.
Seasonal demands.
REFERENCES
● Schreiber, B. A., & Gregersen, E. (2019, February 21). Tesla, Inc. Retrieved
February 25, 2019, from https://www.britannica.com/topic/Tesla-Motors
● Tesla Motors Wins Three Stevie Awards in 9th Annual American Business
Awards. (2014, December 11). Retrieved February 25, 2019, from
https://www.tesla.com/blog/tesla-motors-wins-three-stevie-awards-9th-annual-
american-business-awards?redirect=no
● About Tesla | Tesla. (n.d.). Retrieved February 25, 2019, from
https://www.tesla.com/about.
● Industria automovil, I.A. (s.f). Automobile industry in India - Potential of Automobile
companies, technology etc… recuperado 23 de febrero, 2019, de
https://business.mapsofindia.com/autombile.
Bhasin, H. (16 de May de 2018). Marketing91. Obtenido de
https://www.marketing91.com/swot-analysis-of-tesla-motors/
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papers/swot/1433/588-tesla-motors.php
Kissinger, D. (12 de September de 2018). Panmore Institute. Obtenido de
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Chandra, M. (2015). Hofstra University. Obtenido de
https://scholarlycommons.law.hofstra.edu/jibl/vol15/iss1/1/
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https://en.portal.santandertrade.com/analyse-markets/india/economic-political-
outline
UK INDIA. (Febrero de 2019). Obtenido de https://www.ukibc.com/india-
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