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Lecture 5

BU481 Lecture Notes - Lecture 5: Consumer Behaviour

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Karin Schnarr

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Telsa Motors
Create a low volume car, which would necessarily be expensive
Use that money to develop a medium volume car at lower price
Use that money to create an affordable, high volume car
And to provide solar power
Porter 5 forces
Substitute traditional cars, public transit, bikes, motor bikes, walk, hybrid cars
New entrance huge initial capital cost, R&D
Rivalry among competitors small rivalry as there are only 3 companies competing, e.g. Nissan,
Supplier battery supplier has high power, telsa needs the battery to make the cars, commodity
based products are usually low in power e.g. steel, aluminum
Buyer dealerships,
Political subsidies from government, emission standards
Economic oil prices, renewable energy prices are decreasing,
Social reduce CO2
Technological tech is slowly improving,
Environmental reduce CO2
Value system
Car Parts (Battery) Manufacture Dealerships Consumers Service Providers
Tsla controls the whole system
As they are starting to make their own battery
Performance of electric cars used to be crap, but tsla has improved it
Long payback period
Consumer behavior change
Lack of charging Infrastructure building more super charging stations
Focus of CEO his focus is everywhere, e.g. wants to go to mars, solar panels tils, vert
interested in artificial intelligence
find more resources at
find more resources at
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