Over the past ten years, there has been a significant rise in demand for electric vehicles due to volatile oil prices, a huge decline in urban air quality, and the move to reduce carbon-based transport. Global sales of BEVS (battery-electric vehicles) are expected to reach more than ten million by 2025. Although the electric vehicle market is growing, many customers still choose to buy petrol vehicles instead of greener electric cars. This is because the cost of producing an electric car is quite expensive so in order to create profit for the company, they must charge a higher price. For a while, the idea of an affordable electric car was out of the question. But technological advances and breakthroughs have allowed for cheaper methods of production which translate into cheaper vehicles for the consumer. Other alternatives include different modes of transportation such as riding a bicycle, taking the bus and walking. One of the major challenges for electric vehicles is the compromise between their performance and cost. On one hand, almost all major automakers such as General Motors, Ford, Toyota, BMW and others have built electric cars that are not very expensive, but performance of these cars is compromised. Specifically, electric cars were known for being slower compared to traditional cars and their batteries did not last for long. However, such fully electric advanced vehicles are technically challenging and expensive to produce. These are main reasons Tesla has not been able to become profitable up to date. Any potential new market entrant is going to face the same set of challenges as General Motors, Ford, Toyota as well as Tesla. Moreover, established market players benefit from economies of scale to a great extent and this benefit is not available for new market entrants, at least for the first few years of their operations. Massive capital requirements can be mentioned as another significant barrier for new market entrants into the electric vehicles industry. There are no costs for customers to switch from Tesla's Model 3 to another electric vehicle such as Jaguar's l-Pace, Porsche's Mission E-Cross, or Audi's E-Tron Quattro. The absence of switching costs increases buyer bargaining power to a considerable extent. With the increasing range of electric vehicles from various established and new automobile companies, customers may notice that Tesla prices are actually very expensive. Accordingly, by choosing alternatives, buyers may exercise their bargaining power to make Tesla reconsider its prices. On the other hand, Tesla has been able to develop its Model S, Model X and Model 3 cars that are fully electric and boasts advanced technical characteristics such as high speed and long mileage in a single charge. Tesla also recently announced that it would reduce its prices for the Model 3 by moving to online sales only. However, this has brought the businesses profitability into question. Although Tesla is the most recognisable brand for electric vehicles, all major automobile companies have also announced their plans to increase their focus in this segment. For example, GM, BMW, Volkswagen, Porsche, Jaguar, Nissan, and Mercedes-Benz have all announced plans for committing billions to the development of mass market electric vehicles. Some are already available for customers such as the Chevrolet Bolt and Nissan Leaf, and many more are set to hit the market within the next 12-24 months. Tesla's production strategy includes a high degree of vertical integration (80% in 2016), which includes component production and proprietary charging infrastructure. The company operates enormous factories to capture economies of scale. Tesla builds electric powertrain components for vehicles from other automakers, including the 'Smart ED2 ForTwo' electric drive (the lowest-priced car from Daimler AG), the Toyota RAV4 EV, and Freightliner's Custom Chassis Electric Van. Vertical integration is rare in the automotive industry, where companies typically outsource 80% of components to suppliers, and focus on engine manufacturing and final assembly. Tesla's distribution strategy involves a small number of company-owned stores and galleries located in limited geographic areas (as opposed to most automakers who have franchised dealerships in more locations). Customers can check Tesla's cars, energy storage, solar panels, and related products at their retail outlets located in malls and other areas. However, customers need to use the company's website to complete sales transactions. Also, Tesla owns its service centres, where customers can access repair and maintenance service. Moreover, customers can charge their cars through the company's charging stations. These venues reflect the company's selection of limited but strategic locations for its business. Thus, Tesla has significant corporate management control on the sale and distribution of products. Before planning marketing strategies, it is important to analyse the macro and micro environments: With the aid of relevant examples discuss the elements of the macro environment. Suppose you are an entrepreneur for a water bottling plant manufacturing still and carbonated water. Discuss how you can segment the market. Hint: Segmentation bases. Suppose you are an entrepreneur for a water bottling plant manufacturing still and carbonated water. Discuss the marketing mix elements for your organisation.