ICC: Indian Case Challenge 2022

COLLEGE: Institute of Rural Manangement,Anand

TEAM : Daredevils
 Solving Short Chal
Major pain Resources and Marketing Budgeting and Risks and super
INTRODUCTION swot Entry strategy target audience time leng
areas capabilities strategy Mitigation chargin
g plan es

INTRODUCTION TO CASE

Despite hitting roadblocks posed by the unfortunate second wave of the pandemic
and other global issues like semiconductor shortage, increased commodity prices,
shipment challengers, etc. Audi India sales increased by 101% with 3293 units of sale
which shows the bright future of EV in India.The above lines are enough to enhance
confidence of a company who is thinking of exploring the Indian EV Market
◼ Tesla was founded in 2003 by the engineers Martin Eberhard and Marc Tarpenning in San
Carlos, California.
◼ It was originally called Tesla Motors, a name the company changed in 2017.
◼ Elon Musk joined the Board of Directors in 2004 with an investment of $30 million.
◼ The company relies on vertical integration as its crucial pillar of success.
◼ Tesla sells 4 models currently with a grand plan of expansion in mind.
◼ In terms of operational efficiency and technology there is no match of Tesla with its having its
own supercharging infrastructure
◼ Tesla is now looking to tap Indian EV Market. Although It has many hurdles in a way which it
need to cross.
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MAJOR PAIN AREAS

Exorbitant Import Tariffs and charges

from Indian Government. Fierce Competition in Price Driven Indian EV
Market with TATA being the Market Leader

Super Charge Quandary Lack of enough Knowledge of Indian Auto Market.

Which kind of Audience Tesla

Build a entry strategy of should Target and How Tesla
Formulate a Tesla into Indian Market should tackle the fierce
Pricing Strategy competition present in Indian
Market

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SWOT ANALYSIS

Strong R&D Team,Better Technology,Most valuable automotive company, Best in-class electric
cars,Innovative company,Cross-sell diversification

Unable to meet demand might affect brand value,Shortage of batteries,High Price without
Subsidies, Elon Musk as Tesla’s sole representatives, Leadership Wrangles

Sales expansion in untapped market,Less expensive cars,Increase demand of Hybrid

cars,governments promoting hybrid cars by giving subsidies, Market, confidence in Tesla

High level of competition with rivals, expensive battery, Product liability claims,Product defects,Long
term confidence,Self driven cars still a concern for pedestrians, Lack of regulation for self driving, High
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risk factor due to usage of lithium ion batteries, Disruption of Supply due to shortage of materials.
Resources and Capabilities
Tangible Resources
● Financial:Tesla over a short period of time has
managed to enter several countries like
Australia, Canada, New Zealand, etc. Has many
investors like Google, Daimler etc. US
government is also funding and providing
subsidies.
● Technological: Uses Lithium Ion Batteries in its
cars which is rare to manufacture.
Manufactures power train for other
manufacturers. Strong R&D within the
company.
● Physical:Tesla has managed to open 50 stores
across the globe. Has a NUMMI plant to
manufacture its cars.They with the help of
Panasonic has managed to set up a Giga
factory for manufacturing batteries.
Intangible Resources
● Human: Has the most talented and efficient
engineers working for the company.
Dedicated R&D team who focuses on
improvement of product
● Innovation: Innovation is the key reason
why Tesla stands out among its
competitors. Use technologies that are user
friendly. Comes imitate. up with the most
advanced technologies that are hard to
imitate.
● Reputation: One of the most recognized
electric car manufacturer across the globe.
Has won many awards and accolades due to
its reputation as a clean energy and
ecofriendly car maker. 5
 ENTRY STRATEGY
Tesla should make an entry into
Indian Market by establishing its
manufacturing unit in Karnataka
as the state has EV favourable
policies and is IT Hub through
which hiring cost will be
reduced.
Manufacturing Unit should pave
its way to use the subsidies
offered by Indian government
through its FAME policy and
labour cost will also be less in
India which will enhance its
production efficiency.
It should not Import and instead
should wait for firstly establish its
manufacturing unit and start
production even if it will take 1 more
year to launch but it will cost lower
to company than importing. Doing
this will also enable it to
manufacture its coming model cars
in India at low cost
Tesla should also establish its R&D
centre in India to harass tech savyy
youth of nation and it will not give
Tesla only a cost advantage but also a
competitive advantage.
Although initially manufacturing unit will
incur cost to Tesla but it should focus more
on long term growth prospectus by
generating future cash flow valuations as
manufacturing unit will give tesla some
support policies of Government. Once Tesla
established itself in Indian market then they
will have the economies of scale advantage
and can earn profit accordingly.
Tesla Should initially launch 2 products Tesla
S and Tesla 3 model to start with and can
divide into 2 segments of Luxurious
Consumer base and Mid Commercial
Consumer base and then should bring in
Tesla .
Model which is currently under production
that will be most economical car of Tesla
through which it can attack Affordable
Customer base
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 MARKETING STRATEGIES
Porter's Five Forces
Ansoff Matrix ● EV Market has a high
● Either going with the switching cost.
existing product (Product ● Tesla should adopt
Development). differentiation strategy.
● or it should introduce new ● Distinguish its products
product through advertising,
line(Diversification). distinctive product features,
● Riskier to go with exceptional service quality
diversification. or new technology.
● So focussing on Product ● Can use Brand name by
Development. focussing more on digital
advertisement to target
youth.
Market Attack Strategy:
● Tesla can opt for Attacking
Strategies like:
● Frontal(Tesla should try to
match with TATA on terms
of doing Empathetic
business in India),
● Flank(With lack of
Luxurious Car Segment
and Advanced Technology
are some weak areas for
TATA)
● Guerrilla(Remote Repairing
Service Offer).
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 BUDGETING & TARGET AUDIENCE
Estimated Figures Assuming 100000 units
Initial Project Investment: Rs. 88,83,36,60,000
Subsidy for EV Manufacturing: Rs. 1,05,26,57,541
Project Cost: Rs.,79,54,883
Selling Price Model S: Rs. 1.5 Cr
Selling Price Model 3: Rs. 0.5 Cr
We Assume that Government will provide subsidy to
Tesla after manufacturing unit it install in India
Tesla has capacity to manufacture 1 Lakh Units
Target Audience:
It should Target Metro Cities and
Urban Demography initially with a
focus on Cities like Bangalore, Chennai,
Mumbai, Hyderabad as these big south
cities will give a cost advantage to tesla
initially .This region as well established
automotive industry and have sea port
advantage which has easy accessibility.
Further It should target audience of age
range between 18-55 years old as
youth will be more attracted towards
its brand name and luxurious aspect
that Tesla is offering
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RISKS AND MITIGATION

Potential Risks in India How the risks will be mitigated

Infrastructure to support enough "charging stations Government Support (Subsidize duty on lithium imports, battery
manufacturing costs)

Market Perception of Electric Cars in India (Previous failures of Mahindra Lot of advertising and performance & reliability reviews to be shown on
Reva, E20) different media

Premium Price of the Tesla Car 18-24 Lakhs. Position it for the luxury car segment

Culture Localization Strategy has to be adopted in coordination with the local

"Culture eats Strategy for Breakfast" (Peter Drucker) partner

Power Shortage- A massive risk! esla Plan to build a India-wide Supercharger network in collaboration with
the Govt- PPP MODE

Currency Risks-Appreciation of USD can have negative implications on Hedging foreign exchange risk by buying a spot contract. Negative swing
production & assembly costs. won't hurt much.
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SOLVING SUPERCHARGING CONUNDRUM

Tesla should install its own Supercharging stations in India covering the large parts of India, with its technological
advancement it can also bring the charging infrastructure to rural part of India for which they can collaborate by
offering franchised dealership across India.

Tesla should also Collab with other EV players in usage of Super Chargers to use Economies of Scale by making its
chargers compatible with other EV models also but it can offer some discount schemes like coupons exclusively for
Tesla Users. By doing this Tesla will be able to enhance its revenue.

Tesla can also carry out with Tesla Rangers in India and should harass its technological advancements like giving remote
repairing services to customers to challenge TATA.

Established a solar power Supercharging network compatible with other EV players Variants with the collaboration of
Indian Government under PPP Model.
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SHORT TERM PLAN
Establish a
manufacturing Unit and
should not Import.
Open Showrooms in Metro Cities
with a name of Tesla Store
Launch 2 existing variants initially
including the most economical
model and must look to launch
new model by keeping customer
Centricity, Digitalization, Products
and Network in mind
Established a solar power
Supercharging network compatible
with other EV players Variants with
the collaboration of Indian
Government under PPP Model.
Attacking Marketing Strategies to
challenge market leader TATA
Gradually should move towards
expansion by launching public
transport
Establish R&D unit to gain cost
advantage and competitive
advantage
Initially should Target Audience from
Metro Cities.
Push the Indian Government for EV
favouable policies by offering to
establish more production units in
India instead of China(Trade War
Advantage for Tesla)
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CHALLENGES IN IMPLEMENTATION
Addressing technical challenges through the 5Cs of IoT

Connection Super Charging After Sale

The Pandemic
with Customers Stations Service

Being a foreign firm, As Tesla is going to The Pandemic has As a Tesla will be a
the Tesla while collaborate with other ebbed the Auto Sector new player in Indian
implementing its of Country and its Market, It can be
EV players for
consequences will be possible that in Initial
strategy can face some superchargers it will seen in near future Years, it will be
initial connection be a difficult job for also so Teslaa can face challenging for it to
building problem with Tesla to crack a deal challenge in generating provide quick and
Price Sensitive Indian with players. sufficient demand in quality post sale
Customers Market service.

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THANK YOU

Team Daredevils