Name complet 

: Alain-Bernard MWAKA NGUMA

Student number : 22206447
Group : 1
The 21th of November 2022
Health Care Organizations Management Master

MARKETING STRATEGY’S ASSIMENTS

1. What environmental factors are behind Dyson’s move into the electric car
market and move its operations to Singapore?

Answers :

 The investment in Singapore was premised on market access

 There is in Singapore efficient trade links with China, which is the

world’s largest electric car market and the presence of a huge
availability graduated engineers ;

 The reluction of Dysons to collaborate with other companies in order to

protect its intellectual property borne out of years of expertise, protecting
his compagny against collaboration with small partener and limitated his
supply chain only in his nation.

 Singapore’s incentives including tax breaks for five years  ; which

possibility of further extension, and Research and developpement
grants that can cover up to 30 per cent of the cost of projects that involve
product ,application, or process development, according to the Singapore
economic development board.

 Singapore also offers expensive land at discounted rates

2. What does Sir James mean by ‘Dyson was never a vacuum cleaner
company ?

Answers :

 For Sir James Dyson sets better benchmark with the notable exception of
its washing machines and stepping into new market with new product will not
be their first experience because Dyson is one succeeful company in
almost every product category;

 They believe The exponential growth of their revenues is because of

the R & D and technology that they have incorporated in their products and
has provided for them sufficient funds to step into the Electric Vehiculs (EVs),

 They posess efficient network of  suppliers of their markets offreing

from the existing chain.
  They have specialization in areas such as batteries, aerodynamics,
and electric motors. They  believe in their intellectual property so much that
it took more than a year to finalize a supplier for them. Giving them a upper
hand in key factors which determines the cars performance.

 Dyson’s other strenght (forte) is batteries. It already producing

(makes) seven per cent of the world’s lithium-ion cells (bateries)
to power devices. Batteries could be the make or break for Electric Vehiculs
(EVs) as they are the only componentto watch out for in weight, space,
capacity, performance, durability, etc. With their expertise in it they are ready
to strike off major part of building Electric Vehiculs (EVs). They desire Being
an innovative company and creating a revolutionizing energy source
that would outperform the lithium-ion batteries that are currently used in
the Electric Vehiculs (EVs) marke.

3. Use the Five Forces model to establish how competitive the electric car industry
sector is.

Responses :

1.  Rivalry among existing Electric cars’s company : If competition is intense then it

becomes difficult for existing players such as Electric Car to earn sustainable profits. The
industry rivalry among competitors is intense when company like   start-ups, traditional
automakers, and big automotive brands start switching to electric for exemple. Then
competitors use pricing and differentiation strategies, restricting market penetration and
profitability growth. The attractiveness of electric vehicles impact changes negatively
because of The volatility of oil prices, geopolitics, and government policy. The issues of
reliability, battery life, lack of infrastructure, and chip shortage are still being considere as the
industry-wide issue that makes electric vehicle challenging to compete with internal
combustion engine vehicle. But let take an exemple of Tesla to see how they competing in
their business environement. Tesla lowers the intensive of the industry and competition by:

 Differentiation in the product, place, price, and promotion as the key source of
competitive advantage in an intense industry.
 Innovative attitude, integrated services, and IPs are the building blocks of Tesla’s
competitive advantage.
 Supply chain, vertical integration, and continuous improvement will lower the unit cost
to increase profitability.
 A strong social media presence will enhance the brand value and adoption.

2. Threat of new entrants - if there is strong threat of new entrants then current players will
be willing to earn less profits to reduce the threats. The threat of new entrants is high, as the
barrier of entry is low. Chinese companies for exemple dominate the Electric Vehicules start-
ups and including others .They possess a better competitive advantage because of their
access to the biggest consumer market, well-established supply chain, and government
suppor ;using tesla company exemple this is how they increase their barrier of entry and
lowers threat of new entrance :

 By expanding technology innovation to create differentiated products and offerings.

 By Becoming the global leader in autonomous technology and application.
 Leverage Space X and other sister companies to provide integrated services.
 Enhance manufacturing excellence to improve costs, reliability, and deliveries.
3. Threat of substitute products and services : If the threat of substitute is high then
Electric Car has to either continuously invest into R&D to evoid the risks of losing out to
disruptors in the industry. The threat of substitutes is high in tesla company as it owns a
1.2% market share of the overall automobile market and 14.55% of the global electric vehicle
market in face of its competitors as The big automakers which has a solid customer base,
and the start-ups hah saturated the markets. However, the main source of competitive
advantage for Tesla is brand loyalty. Tesla has loyal followers because. His controversial
appearance on social media and main stream channels is a free marketing campaign for
Tesla. There are no billboards and advertisements about why owning a Tesla car is the best
decision you ever made.Tesla lowers the threat of substitutes by :

 Being the right on track to market its brand through clever marketing rather than the
traditional approach.
 Competing in the high-end market and charge premium pricing.
 Expanding company-run showrooms and stores into an interactive technology hub,
so customers can experience the latest Tesla technology, similar concept to Apple
Stores and Starbucks Reserve.

4. Bargaining power of suppliers of Electric Car : If suppliers have strong bargaining

power then they will extract higher price from the Electric Car. The bargaining power of
suppliers is high due to a limited supply chain network. The electric vehicle industry is
relatively new and in the development stage. Therefore, companies in this era (as Tesla)
should constructs the Gigafactories in the differents places or countries to lower the
bargaining power of suppliers. The strategy will shorten the supply chain network, bring
production and market closer together, minimize shipping costs, and avoid supply chain
disruption due to some global problem as covid-19.Tesla lowers the bargaining power of
suppliers by:

 Shorten supply chain network by constructing Gigafactories across the globe.

 Diversify suppliers to avoid shortages and production delays.
 Leverage technology to lower the bargaining power of suppliers.
 Develop vertical integration to enhance cost leadership and manufacturing
capabilities.

5. Bargaining power of buyers of Electric Car : If the buyers have strong bargaining power
then they usually tend to drive price down thus limiting the potential of the Electric Car to
earn sustainable profits. The critical source of sustainable competitive advantage to
successfully compete in the high-end market is differentiation, offering products and services
that no one else can. The bargaining power of buyers is low, as Tesla segments its products
at the high-end market with premium pricing. Tesla competes in the luxury market because
of intense competition in the low-end market. The electric carmaker is currently leading in
speed, safety, battery life, and autopilot system. Tesla lowers the bargaining power of buyers
through:

 Diversifying products in the popular segment, such as large SUVs.

 Providing an innovative subscription model than traditional leasing or financing.
 Expanding autopilot capability, reliability, and safety globally.
 Offering unique services that cannot be replicated by others like Starlink network.