1./ Illustrate three product level (core, actual, and augmented products of tesla electronic car?
VI. Read the Case and answer questions (30%) Score: It's a $3 billion criticism, to be specic. That was the amount shaved off the company's market value in early August 2015 after Tesla cut its sales forecasts for the year by 10% to 50,000 vehicles, citing delays in teaching the robots to make both the Model S and the new crossover SUV Model X .\"Model X is a panicularly challenging car to build, maybe the hardest car to build in the world." admitted Elon Musk, Tesla's founder and visionary CEO. But neither delays nor the cash bum ($1.5 billion in the past 12 months) panicularly fazes Musk. He just wants to focus on making the world's best car, and the $70,000 Model S, by all rights, can claim that prize, An allelectric vehicle, it offers a week's worth of driving on a single charge from any one ofa nationwide network of free solarpowered charging stations. It goes from 060 in under three seconds, the fastest of any four-door production car on the planet, and is also the safest car in its class. When it collides with the crash-test machine, the crash-test machine breaks. You can order it online and have it delivered to your door, get software updates beamed wirelessly and receive maintenance alerts before bad stuff happens. Plus, it's beautiful, The door handles reach out to be opened as you approach, then fold at for better aerodynamics. Consumer Reports called it the s r 7 best overall car on the market for the past two years. In 2014, the rst Model S sedans were delivered to customers in China. Tesla, aiming to meet lofty sales goals, went on a hiring spree (and eventually amassed a staff of 600 people), opened stores and service centers, and began an aggressive rollout of its network of free fast-charging stations known as superchargers. Those efforts fell short. Tesla's first year in China didn't pan out as expected. The Company sold an estimated 3,500 cars in 2014, below its sales goal and behind electric and plugin hybrid vehicles produced by Chinese rivals BYD (litlEiELJ) and BAIC (Jt). Sales continued to lag in the beginning of 201 5. Elon Musk has placed much of the blame on a misconception among Chinese consumers that charging is difficult there. Musk said the company was working to fix that perception problem. However, Tesla's China problem goes beyond a failure to communicate and educate Chinese consumers about charging the Model S. \"This isn't just a misconception, it's a concrete problem,\" said Lilia Xie, a research associate with Bostonbased Lux Research. \"China's infrastructure, in many ways, is not ideal for supporting electric vehicles." Most families don't have private garages and the population is very concentrated in urban areas. That means car owners typically park in public garages, on the street and at work, making it difcult to install private charging infrastructure, Xie said. Tesla is offering free at-home charging in an effort to ease concerns and continues to add to its ZOO-plus network of superchargers. It's also working with property owners of residential buildings to set up charging infrastructure. Changing public perceptions in China is further complicated by consumers' general misgivings about adopting new technology, particularly with cars. Xie said. Tesla will need to sell upwards of 1,500 cars to Chinese consumers each month if it hopes to hit its former 2015 target, said Karl Brauer, senior analyst with Kelley Blue Blue. Questions: I. Illustrate the three product levels (core, actual, and augmented product) of Tesla electronic car. (10 points)
