Researching an Industry of Your Choice Using an online library database that is

Question

Researching an Industry of Your Choice Using an online library database that is available to you (such as Hoovers orld), choose a company of interest, and identify its related industry. In approximately one page, describe 3.3 . Whether the company you've identified is public or private . Key sources of revenue for companies in this industry . Key competitors for this company . Information about this industry's supply chain . Industry growth trends and forecasts . Plus, one other industry-specific fact you learned (e.g., industry jargon, analyst call preparation questions, and so on) Please do not cut and paste directly from the database; rather, summarize your research using your own words Finally, describe a circumstance in which you can envision performing similar industry research as a professional

Explanation / Answer

The Company

The identified company in this case is Tesla,Inc. It’s a publicly traded company with registered ticker TSLA at The NASDAQ. The company belong to automobile industry selling high end electric passenger vehicles for personal use.

Revenue sources

The revenues are segmented as Automotive which constitutes 97% of the total revenues and rest of the 3% comes from Energy generation and storage. Of the automotive section, the largest chuck of approximately 80% of the total revenues come from sale of automotive and rest from leasing facility and services etc.

Key competitors

Since the company belongs to the alternate fuel automotive industry, it do not have any such direct competition but the company management feels that the day is not far when major automotive companies like BMW, Mercedes, General Motor, Toyota, Lexus, Audi and Daimler would offer some stiff competition. In the solar energy business, the major competitors are Vivint Solar, Sunrun Inc, Trinity Solar etc.

Supply Chain

Since the company is new born in the industry compared to the presence of its peers, it lacks sophistication and maturity in terms of the supply chain. There are thousands and big and small spare parts which the company procures from hundreds of suppliers worldwide. The company is equally concerned about its dependency on single supplier for some of the parts and components and is in the process of exploring the alternate suppliers that can also with stand the high standards that the company strive for.

Industry growth trends and forecast

The company is very optimistic at the growth and outset of its products in the alternate fuel automotives and solar energy storage products. For that the company has huge capital outlay plans including constructing the new gigafactory 2 for the growing demand which expects to sell 500,000 cards with added features and state of the art safety and entertainment features by 2018. The company also expects that its expenses would grow considerably in 2017 owing to design, engineering, testing, selling & admin expenses.

Typical aspect of the industry

The automotive industry is prone to high product liability costs as the products might under-deliver or do not deliver as expected out of the total package and specially related to safety and technology.

               

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