Executive Summary
Throughout the work, the fundamental aspects of the success of the invented supplier of electric vehicles will be described. A SWOT analysis was carried out in more detail to understand the company’s situation in the industry. According to Madsen (2016), “SWOT analysis has over a period spanning several decades enjoyed considerable popularity in the business community” (p. 39). The aspects of the marketing strategy are also described in detail, as they have their own uniqueness in front of many companies in the world. The main task was to analyze the company’s activities in the world markets, as well as trends in the field of mechanical engineering and the future of the company. Communication between the company and its customers has been placed in separate paragraphs, as it is unique against the background of other industry players.
Company Description
The company was founded by a group of scientists, like most others. They set out to demonstrate that people probably do not need to make compromises to drive electricity – that electric cars can be better, faster, and more enjoyable to drive than gasoline ones. The company now manufactures not only fully electric vehicles but also infinitely scalable sustainable energy production and storage systems. The company believes that the sooner the world moves from fossil fuels to a shallow future, the better. The company has received frequent criticism and has been at the center of numerous lawsuits and disputes involving the chairman’s remarks and actions, as well as accusations of accounting trickery. At the moment, the company is developing a fully autonomous vehicle that will save a person from possible accidents.
The company is a publicly-traded automobile and technology company producing electric vehicles and energy storage systems; the firm is based in the USA. With huge cash in earnings, her sources of income are large customers who research and purchase her vehicles through boutique-style stores, in other ways that lack sales staff and some form of bargaining. The range of electric vehicles already includes a large number of models for almost any purpose. However, the company wants to expand and build its own electric trucks. The company’s goal is to accelerate the introduction of renewable energy and electricity sources.
Situation Analysis
The market for all-electric vehicles is expanding. New restrictions on vehicle safety and pollution, technological advances, and changing service standards are just a few of the reasons. According to Kiznyte et al. (2016), “the trend in recent years has shown that the increasing number of small, innovation-driven start-up companies that operate through internet platforms are shaping the future of business” (p. 1). However, the company under study and its unique business strategy had a lot to do with the widespread acceptance and craze for electric vehicles. A new marketing strategy was used. Rather than trying to create a reasonably inexpensive car that could be mass-produced and sold, they took a completely different approach, focusing instead on creating an attractive car that would generate the electric vehicle market.
The company’s business strategy was strengthened after the company developed its brand, developed and marketed its prototype vehicle. The business strategy is built on three pillars: selling, servicing, and recharging electric vehicles. According to Smaliukienė and Petrauskaitė (2018), “the environment in which the strategic marketing planning takes place has an important effect on how the process is carried out” (p. 444). Unlike other car manufacturers, the company sells directly to people rather than through franchised dealers. He has created a global infrastructure of corporate exhibitions and museums, most of which are located in metropolitan areas.
SWOT Analysis
Strengths
- The company is a leader in the field of electric vehicles, thanks to the widespread use of sustainable energy sources such as solar energy.
- Despite its numerous issues, its sales have surged as a result of its evaluation of a company, appearance, and development pace.
- Automobiles’ design is excellent. In order to provide excellent pleasure to clients, they address a wide range of issues throughout the design phase of electric vehicles.
Weaknesses
- It may confront an issue of market forces mismatch, unable to satisfy production goals, and it still poses new challenges with manufacturing costs, management systems, and space growth.
- The company is regarded as a high-end renewable energy company. One of the challenges they may face is the price of electric cars and customer trust.
- The greater the intensity of invention, the deeper the technological complication and manufacturing risk. When it debuts new automobiles, it confronts ongoing delays in start-up, production, and manufacturing.
- Because of the scarcity of batteries, their production has suffered. The scarcity has a direct influence on electric car and battery energy storage revenues.
- CEO is also heavily active in a variety of other initiatives, including ecology and healthcare.
Opportunities
- The company’s autonomous innovation is well-known for its dependability and simplicity. As a result, customers and the equity markets respect it. Its progress on self-driving cars is growing.
- The Asian market is still underserved. Particularly as the company seeks to grow its worldwide market in order to strengthen its monetary sustainability and market impact.
- As client knowledge of environmental preservation grows, so does the need for more electric automobiles. At the same time, fuel-powered cars must be reduced.
- The company intends to produce its batteries in-house. This has the potential to alter the game’s rules by assisting businesses in lowering manufacturing costs. It will also generate a large number of employees, which will benefit the economy.
Threats
- Patent infringement lawsuits, which the business worries will be one of the most costly. Lawsuits and disputes relating to production equipment problems are also being pursued in the case of self-driving automobiles.
- Plenty of studies have been focused on renewable power vehicles. Toyota, Tesla, Mercedes, Lexus, and many more significant economic areas are becoming opponents. New technologies enable efficient energy utilization in automobiles. High operational expenses and narrow company profits might result from market pressures.
- Due to increased materials prices, the company may experience a significant disruption in its supply of production materials. The firm uses aluminum, iron, lithium, nickel, copper, and cobalt, as are rechargeable batteries from vendors. All of these components’ prices change, which might have a negative impact on the industry’s manufacturing line in the future.
- Renewable energy car firms must maintain their protracted viability. The company’s uncertain production conditions and weak EV support infrastructure in North America and portions of Asia are a possible concern.
Description Service Concept
The company takes the main scene out of the very beginning of the car building process. For starters, unlike conventional dealerships, it sells its cars directly to people rather than licensing them through independent car dealerships. This allows them to have more influence on how their cars and their sales representatives’ scripts are presented. The boutiques follow a minimalist design style with small amenities such as free international calls, coffee shops, and Wi-Fi. Even if the customer is not interested in buying, employees are promoting the company’s business strategy and energy goals.
When consumers are ready to make a purchase, they go to their in-store digital design hub, where a representative will assist them throughout the process. The car can also be bought online from the comfort of your home, and the cost is non-negotiable. The vehicle is fully customizable, and there is a team of distributors to assist customers with payment, signing, and delivery. Once the vehicle is ready, the customer can either pick it up at the dealer’s home or deliver it to a convenient location.
Marketing Strategies
Segmentation Strategy and Potential Target Market
Segmentation is the practice of dividing people into groups based on criteria such as age, social status, and psychological qualities. When the goal is achieved, the needs and expectations of the client depend on the specific area; geographic segmentation is applied. A company can use geographic segmentation because gas prices vary by location and can target people in high-price regions with their ads. For example, it can sell to Europe, as gas prices rise in most European countries, and environmentally friendly administrations and legislation are in force.
Demographic segmentation is used when a corporation wants to divide its customers based on easily quantifiable variables such as gender, age, wealth, and degree. A company can use demographic segmentation to channel its resources exclusively to those who can afford it. When the survey is completed, and the corporation wishes to classify customers based on their behavior, psychography is used. It can also track people’s activity to determine if they are happy with their current cars or looking for alternatives. The corporation can share based on the interests of the people, which allows them to know how many and what types of people are interested in reducing their travel expenses by up to a few cents. The company can get feedback on green car launches.
Targeting implies the selection of certain groups identified as a result of segmentation to sell products. The first market segment was focused on premium sports luxury electric vehicles. Moreover, this has been proven by the release of several models as the first car to be launched on the market. Shortly thereafter, a new prototype for competition in the sports luxury sedan segment was unveiled, and more recently, a prototype for the premium segment.
Positioning and Differentiation Strategy
Positioning is the definition and deployment of the most effective promotional mix for the target customer segment. The company uses one-segment allocation. As a result, the alternative fuel car manufacturer is targeting consumers concerned about the negative environmental impacts of oil and gas. For typical shoppers, products are considered expensive; therefore, the target demographic of the firm’s clients is wealthy individuals and families. It also uses lookahead positioning. In particular, the electric vehicle manufacturer is promoting its products and services to a limited market sector with the expectation of increased turnover in the future. Predictive placement can take place in the energy storage systems of an electrical company.
The firm began its innovations in the automotive industry as a niche differentiation, producing in-demand products based on premium electric vehicles. With the deployment of lithium battery products and the acquisition of the firm, the company subsequently moved from a true differentiation to a broad differentiation marketing strategy. A comprehensive differentiation strategy is a long-term bet with a focus on EV autonomy, battery storage, and green items like solar roof tiles. In order to better establish a hygienic ecology, the companies have merged in accordance with a broad differentiation approach.
Products Strategies
In terms of manufacturing, the company builds all of its vehicles in Detroit. They built a factory to produce 3000 cars every week. In addition, they manufacture vital parts for every vehicle, including the electric motor, battery pack, and chargers. The company manufactures batteries at an assembly facility in Atlanta, in addition to its Detroit base. They also source critical manufacturing components from the United States, Europe, China, and other regions.
For example, the company often supplies lithium from Australia and China. What is more, as electric vehicles become more widespread, the cost of lithium is increasing steadily. Thanks to their close agreement with the lithium source, the company now has a little economic advantage over other competitors. Combined with mechanization and in-house components, their supply chain manufacturing strategy reduces leverage on the supplier. The company is reducing leverage on the buyer by supplying custom vehicles as part of its manufacturing procedures. In the context of a SWOT analysis, it transforms its former distribution network vulnerability into an advantage and long-term viability.
Pricing Strategy
The chairman of the billion-dollar firm is preoccupied with pricing models and methods. Any executive who puts price strategy discussions and decisions at the discretion of a sales or marketing manager has a death wish. Most organizations faced with declining profits are pursuing uncontrolled delays. It is not limited to one or two renegade salespeople but is widespread all the way down to the head of sales. Devaluation behavior is often associated with the public perception that a company’s business has become a commodity.
The pricing approach is based on a truly solid philosophy of ensuring consumer and stakeholder integrity. Discounting new vehicles lowers their residual value and therefore reduces the usability of vehicles currently on the market. This fosters customer loyalty and goes a long way in ensuring that car owners also buy the brand for their future vehicles. With prior discounted sales, the company is playing a bigger game of focusing on the total profit for a customer who may purchase one, two, or three vehicles over the next ten years.
Distribution Strategy
The distribution system relies on its own sales and marketing staff to distribute its products to the right people. According to Gajanova et al. (2019), “with growing competition, loyal customers have become the key to the company’s success” (p. 65). Fully electric vehicles are only available on the website and at our dealerships. Their approach has recently spread to the global market. They are expanding their promotions, building more sites, and producing new unique products that will attract people and increase income. They constantly establish new relationships with other businesses in order to expand their commercial activities.
The company eliminates the use of intermediaries as part of its direct-to-consumer approach, which aims to improve service quality and reduce costs. They have complete control over their distribution networks, including their internet domain and corporate storefronts, where sales are processed. B2B industries can be profitable for a corporation in the future. The company has complete control over its distribution strategy, which allows it to scale up its distribution operations as it sees fit. Service centers are now seeing an increase in distribution and sales. Including these efforts helps to increase sales by incorporating all the core functions of the company.
The distribution system level is zero because the company is using the corporate system. Channel Zero is a channel where a manufacturer sells directly to an end consumer. The corporate selling platform collects purchases across the website, stores, and service centers using direct marketing initiatives and trade shows. Distribution and transmission of data are carried out immediately from one of 150 sites.
Promotion Strategy
The company has received an astonishing number of members due to its corporate boundaries and ease. According to Alexandrescu and Milandru (2018), “communication is at the center of everything the organization does and is present in all its activities” (p. 268). The company regularly creates a huge amount of free advertising with its mesmerizing words and fantastic facts. The business regularly develops more effective ways to get media attention than no other institution’s marketing managers, or CEO could ever do. Since there is a basic understanding of the marketing mix, there is now another important approach to consider, known as the marketing technique.
Like many other firms, there is a referral incentive to get consumers to talk about their vehicles. Customers get what they want or need in return, which increases their happiness from interacting with the organization. Buying a car is often just the beginning of the customer’s relationship with the car manufacturer. If a customer decides to take their vehicle to a dealership for service, the connection will last as long as the customer has a vehicle of that brand. There was an expectation that by launching an all-electric car, they would be forced to use their service centers for a long period of time. Of course, mechanics will end up catching up, but at the same time, consumers will be forced to return to repair shops for more than they might otherwise have chosen.
Social Responsibility
Employees, customers, and shareholders all affect the distance of the company or its microeconomics. According to Wymer (2021), “corporate social responsibility (CSR) refers to a company’s manifestation of its duty to operate in a manner that benefits society” (p. 27). The organization’s management should ensure that plans are implemented to optimize the economic benefits of such external events. For example, the company offers development potential due to the growing popularity of low-carbon lifestyles and the pursuit of renewable energies. In addition, it can improve its financial performance as the distribution of wealth in developing countries improves. This shift in the distribution of wealth expands the pool of potential buyers for the company’s rather expensive cars. It can also expand its overseas operations depending on social potential in a remote or macro-environment.
Conclusion
The demand for all-electric vehicles is growing. New automotive safety and pollution regulations, technological advances, and changing service expectations are just a few of the factors. However, the company and its distinct approach to business can be attributed to much of the widespread acceptance and interest in electric vehicles. An innovative marketing technique was used to promote the market. The commercial strategy was strengthened after the company built its brand built and launched a prototype vehicle.
The business model is based on three pillars: selling, servicing, and charging electric vehicles. From the very beginning, it produces the main stage of car production. For starters, unlike traditional car dealerships, it exports its products directly to customers rather than distributing them through independent car dealerships. The company has complete control over its approach to distribution, which allows it to grow networks as needed. The pricing strategy is based on a really sound idea of achieving transparency for customers and stakeholders.
References
Alexandrescu, M. B., & Milandru, M. (2018). Promotion is a form of Communication of the Marketing Strategy. Land Forces Academy Review, 23(4), 268-274.
Gajanova, L., Nadanyiova, M., & Moravcikova, D. (2019). The use of demographic and psychographic segmentation to create a marketing strategy of brand loyalty. Scientific Annals of economics and business, 66(1), 65-84.
Kiznyte, J., Welker, M., & Dechange, A. (2016). Applying project management methods to the creation of a start-up business plan: the case of Blendlee. PM World Journal, 5(5), 1-24.
Madsen, D. Ø. (2016). SWOT analysis: a management fashion perspective. International Journal of Business Research, 16(1), 39-56.
Smaliukienė, R., & Petrauskaitė, N. (2018). Strategic Marketing Planning: Approach Of Contingency and Strategic Intent. International Economy: Problems of Innovation and Marketing Management, 444-447.
Wymer, W. (2021). Charity marketing and corporate social responsibility. In Charity Marketing. Routledge, 27-45.