New War of Currents Case Study Solution

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DIFFERENCE BETWEEN NISSAN AND TESLA

BASIS OF DIFFERENCE NISSAN TESLA

Experimentation Experimenting with electric Founded in 2003, Tesla started as


powered vehicles from 1974. an electric racing car company.
Car Development Position as a Commercial Car. Position as a Low Volume and
Expensive Car.
Battery Used Battery was custom designed Battery had circular form factor
and rectangular and cannot similar to the batteries used in
be used in any products. laptops.
Sales Model Global dealership model for Relied on an Online purchase
sales. model for sales
Charging Stations Partnered with more than 30 Decided to establish its own
governments and their charging stations.
agencies to establish the
charging network.
Network Well established global Centralized supply chain.
dealership network.
Battery Production Cost Due to the design of their Due to the design of their battery,
battery, there was an there was a cheaper mass
increase in production cost. production.
Complications Battery Design creates Battery Design proved
complications with advantageous for the car’s
replacement. stability and improving the car’s
safety.
SWOT ANALYSIS OF TESLA
STRENGTHS 1. Major Automobile Company.
2. Technology Company.
3. Over the air update.
4. First Principle Thinking.
5. Emphasized on software controlling.
6. Easier automation of the battery production.
7. Relied on Word of Mouth.
8. Online purchase model for sales.
9. Providing super-fast charging.
10.Household and destination charging.
WEAKNESSES 1. Manufacturing Complication.
2. Unable to meet Demand might affect Present Value.
3. Lack of High-Volume Projection.
4. Shortage of Batteries.
5. Vertical Integration.
6. Machine Failures.
7. Centralized supply chain.
OPPORTUNITIES 1. Less Expensive Car.
2. Sales Expansion in Untapped Market.
3. Battery Projection Technology in House.
4. Decentralized supply chain.
5. Scale up production for the global market.
6. Diversifying its product line into pick-up truck and
truck segments.
THREATS 1. Delay products.
2. Extensive Competition.
3. Product Defects.
4. Customer Adaptation.
5. Distribution of Supply due to Shortage of Material.
6. Low Network
STRENGTHS 1. Multiple Product Lines.
2. Early Experimenting with Electronic Vehicles.
3. Developing a car suitable for daily usage.
4. Operational manufacturing plants in its targeted
markets.
5. Wide range of eco-friendly vehicle.
6. Strong distribution network.
7. Well-established global dealership network.
8. Partnered with more than 30 governments agencies
third-party to establish charging stations.
9. Product Portfolio.
WEAKNESSES 1. Increased Production Cost.
2. Battery Complications with replacement.
OPPORTUNITIES 1. Focus on online purchase model for sale.
2. Introducing new models and targeting new segments.
3. Providing super-fast charging.
4. Use of higher incentives for the vehicles to be locally
manufactured.
5. Sales Expansion in Untapped Market.
THREATS 1. Extensive Competition
2. Customer Adaptation.
3. Substitute products
4. Research and Development.

SWOT ANALYSIS OF NISSAN

PROBLEM STATEMENT
₺ High competition because of the big companies like Volkswagen, Ford and General
Motors who have been manufacturing cars for decades. To maintain a leadership
position in a rapidly growing and increasingly competitive EV market.

₺ The intention of purchase and use, consumer readiness and willingness to pay and
accept are some factors which limit the implementation of EVs.

₺ New infrastructure such as charging stations, destination chargers, and service


stations were required for refueling and servicing PEVs and the scale of it remained
extremely low when compared to the infrastructure available for gasoline vehicles.

₺ Ability of Tesla and Nissan to scale their business models and operations in order to
support the Electric Vehicle Market and secure a better position than other.

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