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Jensine Baltazar | Daryl Domantay | Anurag Dighe | Ace Esguerra | Jessica Gonzalez | Timothy Lee
Tesla MotorsJapan
Executive Summary Tesla Motors Inc. was founded in 2003 in Silicon Valley, California
Tesla produces the design, manufacture, and sale of electric vehicles
Entering a new market relies on numerous risk factors like economic, political, and cultural
Marketing aspect, Tesla Motors is an innovative company introducing the world of electric vehicles
Tesla Motors Overview
Mission Statement “It is the mission of Tesla Motors to raise the bar
on the production and distribution of the quickest and most energy-efficient cars on the planet. By leading in technological innovation, differentiation of our content will encourage others to acknowledge the need for change.”
Quality Standard Perceived Value Differentiation
Approach
Tesla’s Goal & Japan’s Commitment Go Hand in
Hand
Country Analysis Brief History in a
Flash Why Japan Partnership Strategy
Legal, Economic & Political System
Vehicle battery
Key Components First competitor advantage
Result= New Venture will create competition
High Risk of Technology Know How Reengineering by the Japanese
Acquisition vs. Greenfield
Product
Economic Analysis Currency and Exchange Rate Risks
1 U.S. Dollar = 89.29 Japanese YenYen slowly gaining in value
Economic Analysis GDP and GNP
GNP currently at -5.3%GDP is at 4.137 trillion U.S. Dollars
○ 4th highest in the world, behind European Union, United States, and China in that order
Economy has been in a state of deflation since 1990s
Economic Analysis Foreign Investment environment
JETRO○ Organization developed to assist with foreign
businesspeopleNikkei 225Currently seeking to acquire more FDI
Economic Analysis Trade Relationships
Imports from China, U.S., Saudi Arabia, Australia, the United Arab Emirates, and Indonesia○ Imports energy fuels like natural gases and oil,
machinery, foodstuffs, and other raw materialsExports to U.S., China, South Korea, Taiwan,
and Hong Kong.○ Exports include vehicles, semiconductors,
machinery, and chemicals
Economic Analysis Quotas, Tariffs, and other barriers to
entryTariffs on various kinds of foods, plastics,
chemicals, and wood○ Few restrictions on natural minerals, ores,
electronics, and vehiclesSubsidizing consumers for ‘green’ energy
sources, such as hybrid cars
Cultural Analysis Population and Demographics
125 million people○ Aging demographic, median age for Japanese
is 45 years old○ Over 20% of Japanese citizens are over 65
years old65% of population live in urbanized areas
○ 10% of population live in TokyoPredominantly Japanese
Cultural Analysis Language and Education
Main language is Japanese, though Chinese, Korean, Filipino, Portuguese, and English are spoken by other ethnicities present.○ English somewhat integrated with Japanese
education systemLiteracy rate at 99%Japanese education system modeled off
Western education systems
Role of Religion Shintoism 83.9%, Buddhism 71.4%,
Christianity 2%, other 7.8% Over 80% are both
Religion in Japan is a private matter
Curiosity about other religions
In business, religion does not play a direct part
Potential Cultural Problems
Definition of cross-cultural literacy
Some different ways to approaching businessI.e: Handling of business cards
Car size problemMost drive small cars due to value of space
Government and Political System
A parliamentary government with a constitutional monarchyFree elections.Representatives.Political parties.
Friendly terms with United States.
Risks of the Political System
The Japanese political system is very stableCulture: Promoting stability and adversity to
riskDeveloped nation
○ Strong economy○ Developed and accepted government○ Civilian rule; free elections
Target Market Sex: Male/Female Marital Status: Single/Married Age: 30 – 60 Income: Middle class – Upper class Tesla Model S – $49,000 Tesla Roadster - $109,000 Tesla Roadster Sport- $128,500
How will this fit into the Market?
-Efficient public transportation system but inconvenient for people live outside metropolitan areas. Many people still drive cars
-Japanese government encourages people to purchase hybrid or electric vehicles. They offer cash incentives to reduce the cost
-Japanese culture is technologically advanced. Tesla electric vehicles are the future
Our Product 2 models of EV’s: The Roadster and Model S
Travel more than 300 miles
Touch screen technology with impressive features
Model S is realistically affordable
Most efficient electric car in the market
Competitors Products
Major competition: Nissan Leaf, Mitsubishi i-MiEV, Subaru Stella
Offers one model and all look similar Seat 4 – 5 adults Prices ranging from $43,000 - $54,000 Travels 56 - 100 miles
Place and Promotion Tesla just entered the Japan EV market EV can be found in the Tokyo sales office,
scheduled appt. In May Shipped 12 Japan Signature Series
Roadsters, exclusive Lots of exposure from press and media lately Word of mouth, online advertising, auto magazines
and blogs Order by telephone, online or showrooms/galleries Build and export the vehicle to you
Legal System Property Rights in Japan are strong
Strong laws created to protect from trademark infringement and black market production
Legal system gives equal preference to domestic and foreign filers
The Necessary Paperwork
Depends on whether producing in Japan or notIf not producing domestically: Must acquire
license to import, because of quotas placed on imports
If producing domestically: No license required. Domestic investment is encouraged
Usually, joining a bank group is encouraged to set up in Japan
Reactions to Investment Investment would be accepted if:
No faux pas are made when enteringA bank group or business group is joined
Tesla would introduce competition to the already highly contested auto market, competition would react swiftly
Risk Assessment Economic Risks Road Transport Conditions Home to Most Technologically Advanced
Vehicles Domestic cars already meet cultural and
economic demand Business Culture restrictions
Top 10 Popular Cars in Japan 2009
Model Total Unit Sold in 2009
1 Toyota Prius 208,876
2 Honda Fit 157,324
3 Toyota Vitz 117,655
4 Toyota Passo 98,883
5 Honda Insight 93,283
6 Toyota Corolla 90,178
7 Honda Freed 79,525
8 Nissan Serena 78,836
9 Toyota Voxy 71,426
10 Nissan Note 65,745
Conclusion Tesla’s target market to Japan servers positive and
negative reactions
Demand for electric, hybrid and alternative fuel vehicles might not yet be profitable for the country
Company has suffered net losses every quarter
Will not be implemented, but a modification of Tesla producing vehicles can be used in Japan is an alternative
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