Tesla needs to conduct an internal audit to understand its current situation and identify strategic factors, alternatives, and strategies. It has been successful launching electric vehicles but faces challenges in meeting high demand and producing batteries. The audit recommends Tesla implement a new strategy of developing an electric truck through a joint venture to enter a new market and help achieve its mission of leading the electric vehicle industry. Controls like patents would need to be established to protect any new technologies developed through this new strategic direction.
The mythology of world-changing startups is strong in Silicon Valley, the eye of the computing and internet cyclone. While its founding fathers have indeed revolutionized our economy, giving birth to GAFAnomics, their supremacy is increasingly challenged by Chinese behemoths, their karma is scrutinized by locked-in citizens, and their ability to tackle the crucial issues of our time - among which global warming - is cynically questioned. But wasn’t technology supposed to solve all our problems?
Elon Musk, a Silicon Valley entrepreneur, who is perfectly fit for an epic tale and a Marvel blockbuster, yet still believes so. Some of his companies - PayPal, SpaceX, Hyperloop and Tesla - are aiming at rebuilding structural industries for the better: Banking, Space, Transportation and Energy.
This is our take on one of them: Tesla, a company that intends to accelerate the world's transition to sustainable energy by laying out a clear vision for the future, by building a 21st century industrial from scratch, and by reinventing transportation and energy through software- enabled networks.
Marketing Strategies of Tesla Inc.
Includes-
1. About Tesla and Elon Musk
2. Marketing MIx
3. SWOT Analysis
4. Porter's Five Force Analysis
5. BCG Matrix
Tesla Motors’ Strategy to Revolutionize the Global Automotive IndustryTran Thang
the Case indicate the strategy of Tesla and give the information for answer questions:
What are the key elements of Tesla Motors' strategy?
which one of the five generic competitive strategies Tesla is employs?
The mythology of world-changing startups is strong in Silicon Valley, the eye of the computing and internet cyclone. While its founding fathers have indeed revolutionized our economy, giving birth to GAFAnomics, their supremacy is increasingly challenged by Chinese behemoths, their karma is scrutinized by locked-in citizens, and their ability to tackle the crucial issues of our time - among which global warming - is cynically questioned. But wasn’t technology supposed to solve all our problems?
Elon Musk, a Silicon Valley entrepreneur, who is perfectly fit for an epic tale and a Marvel blockbuster, yet still believes so. Some of his companies - PayPal, SpaceX, Hyperloop and Tesla - are aiming at rebuilding structural industries for the better: Banking, Space, Transportation and Energy.
This is our take on one of them: Tesla, a company that intends to accelerate the world's transition to sustainable energy by laying out a clear vision for the future, by building a 21st century industrial from scratch, and by reinventing transportation and energy through software- enabled networks.
Marketing Strategies of Tesla Inc.
Includes-
1. About Tesla and Elon Musk
2. Marketing MIx
3. SWOT Analysis
4. Porter's Five Force Analysis
5. BCG Matrix
Tesla Motors’ Strategy to Revolutionize the Global Automotive IndustryTran Thang
the Case indicate the strategy of Tesla and give the information for answer questions:
What are the key elements of Tesla Motors' strategy?
which one of the five generic competitive strategies Tesla is employs?
One of our presentation during Strategic Management class in KDI School of Public Policy and Management, South Korea. All graphics and information used in this slide belong to the original producer and owner. This slide is for educational purpose only.
Hii Friends,
Tesla is an electronic car owned by Elon Musk this slide will help you to understand about electric car market and gives you a glimpse of bright future if this new segment of the car in near future.
The presentation starts off with history of Tesla and then I explain a little bit about Elon Musk and how he contributed to Tesla. The next slide is about critical success factors of Tesla and then I explain about different models of Tesla cars, followed by the demand for EV consequently the demand for Tesla. Then I move on to SWOT analysis followed by the financials and market cap of Tesla, next I move on to Social Media Benchmarking and finally the conclusion
A Marketing analysis for TESLA company in DBA program by Cairo University. It discussing how TESLA is competing Electric Vehicle Market and advancing the development of such Sector. In addition, Tesla is taking further steps toward future by inventing futuristic cars and innovative technology.
Human Ecosystems and the Ubiquitous Commons at the STARTS program meetingSalvatore Iaconesi
Slides from the event:
On December 1st and 2nd 2015, at the European Parliament and Royal Flemish Academy of Belgium for Science and the Arts, in Brussels, Belgium, Human Ecosystems and Ubiquitous Commons will take part “Innovation at the intersection of Arts, Sciences and Technology” event, organized by the STARTS program.
We will present the Human Ecosystems and the Ubiquitous Commons cases as the opportunity for creating value and inclusive, radical innovation through the collaboration between sciences, technologies and the arts, creating impacts for society, administrations and businesses.
more info at:
http://www.ubiquitouscommons.org/ubiquitous-commons-and-human-ecosystems-at-the-starts-program-in-brussels/
One of our presentation during Strategic Management class in KDI School of Public Policy and Management, South Korea. All graphics and information used in this slide belong to the original producer and owner. This slide is for educational purpose only.
Hii Friends,
Tesla is an electronic car owned by Elon Musk this slide will help you to understand about electric car market and gives you a glimpse of bright future if this new segment of the car in near future.
The presentation starts off with history of Tesla and then I explain a little bit about Elon Musk and how he contributed to Tesla. The next slide is about critical success factors of Tesla and then I explain about different models of Tesla cars, followed by the demand for EV consequently the demand for Tesla. Then I move on to SWOT analysis followed by the financials and market cap of Tesla, next I move on to Social Media Benchmarking and finally the conclusion
A Marketing analysis for TESLA company in DBA program by Cairo University. It discussing how TESLA is competing Electric Vehicle Market and advancing the development of such Sector. In addition, Tesla is taking further steps toward future by inventing futuristic cars and innovative technology.
Human Ecosystems and the Ubiquitous Commons at the STARTS program meetingSalvatore Iaconesi
Slides from the event:
On December 1st and 2nd 2015, at the European Parliament and Royal Flemish Academy of Belgium for Science and the Arts, in Brussels, Belgium, Human Ecosystems and Ubiquitous Commons will take part “Innovation at the intersection of Arts, Sciences and Technology” event, organized by the STARTS program.
We will present the Human Ecosystems and the Ubiquitous Commons cases as the opportunity for creating value and inclusive, radical innovation through the collaboration between sciences, technologies and the arts, creating impacts for society, administrations and businesses.
more info at:
http://www.ubiquitouscommons.org/ubiquitous-commons-and-human-ecosystems-at-the-starts-program-in-brussels/
Penjelasan tentang materi Penyegaran Ofisial Pertandingan Futsal (Wasit, Penilai Wasit dan Pengawas Pertandingan) Tahun 2016, pada tanggal 12 s/d 14 januari 2016 di Jogyakarta.
GAFAnomics Tesla Volume 2 - Is Tesla the disruptor we need?Fabernovel
Valued at 210 billion dollars, that is to say the valuations of Ford, GM, Draimler, PSA and Uber combined, Tesla, the leading company in electric car sales, recently became the world's leading manufacturer ahead of Toyota. It is because the company has succeeded in breaking the codes of a century-old industry, symbol of the industrial model of the 20th century, that Tesla deserves its place at the top of the list of the most disruptive companies. Fabernovel presents its new study "Is Tesla the disruptor we need? which reveals the secrets of its success but also provides thought on the future of mobility, which the company has not disrupted to date.
TESLA MOTORS
TESLA MOTORS 5
Abstract.
This paper includes the formation and innovation of Tesla Motors which dominated the electric vehicle industry since its debut in 2008. The company follows an open Innovation strategy and cutting-edge technology partnering with major companies like Lotus(Design, plant and Lotus supply chain), Daimler (electric drive and battery systems), Toyota (production system and provide engineer support), Panasonic (Building of Batteries) and Sotira(carbon fiber body). Tesla motors succeeded in making the only electric car which supports long range, sportive performance and design. I’ll also talk about the history and the making of Tesla models (Roadster, Model S, Model X, Model 3, model Y and semi) and the solar energy products. Furthermore, this paper also includes the R&D strategy and the use of OEM products to build a cost-effective product. Also, this report considers the U.S government policies and the strategic partnerships with other companies.
Introduction
In the recent past, global warming has been named as one of the biggest global challenges. This is because of the high amount of green gas produced into the atmosphere. The motor vehicle industry has been rated by UNEP as the most environmental pollutant. This led to research on possible fuel alternatives in the automotive industry. Tesla cars are completely electric supersport cars that use strong and extremely powerful lithium-ion batteries. Tesla motors are these car manufacturer founded in the year 2003 by Americans entrepreneur known as the Silicon Valley engineers. The main aim of this company was to show that electrical energy could be used to power super powerful sports cars producing enough torque while contributing zero emissions to the atmosphere. It was named after the Ac induction motor inventor Nikola Tesla who invented the concept of electrical induction using an electromagnetic field to create rotational energy.
Following the Global environmental summits held by UNEP and other stakeholders, the US aims to have a carbon-free automotive industry by the year 2040. Tesla vehicles are completely carbon-free using electrical energy to power their engines. From the year 2003 until know, Tesla gas produced 3 car models each with an acceleration of more than 94KM/hr and an acceleration time of fewer than 4 seconds (Karamitsios, 2013). The big sporty nature of this vehicles shows that electrical energy can be efficiently and sufficiently used as the sole car engine driver. Recently, the company has branched into the use of solar electrical energy to charge electric batteries used by these cars. Solar energy is a readily available renewable energy source that promotes non-fossil fuel energy. These, in turn, has increased the overall efficiency of these vehicles through the reduction of costs.
Disadvantages of the existing solutions
Currentl.
1
14
Global Business and Strategy
EU Business School
Calvin Kammer
Introduction
A global business is a company that serves or operates in different countries worldwide. Due to international market openness, the global business environment has become so dynamic thus, the sustainability of any company will depend on the business strategy adopted (Morgan, et al 2019). To this end, this report will evaluate the global business and strategic objectives of Tesla and provide recommendations on the Company's strategic roadmap.
Background of Tesla Company
Tesla Company is an American automobile firm that has pioneered the world transition to eco-friendly energy by designing and manufacturing solar roof tiles, electric cars, and solar panels. The Company was established in 2003, and it operates in the US and China, but it plans to establish a manufacturing plant in Germany. Tesla reported improved sales in 2021 recording a total of 936,172 vehicles which represented an 87% growth compared to 2020 sales (Jiang, Shi & Li 2021).
External Business Environment Analysis
The external business environment is macro-factors that influence the business's operations but which are over and above the control of a single business entity Any reference?. To adequately understand how these factors impact the industry, we shall employ the PESTLE analysis. PESTLE analysis is a macro environment analysis tool which evaluates the external factors which influences the performance of the business. The analysis looks at how the political, economic, social, technological and legal elements impacts the operations of the company (Achinas et, al.2019). This model is relevant to case study of Tesla Company because it will give an in-depth understanding of the company’s external business environment and how the factors have impacted on its operation.
PESTLE ANALYSIS
Political
Sholihah, et al. (2019) notes that,Political factorsare government policies that influence businesses. For instance, trade policies can restrain a company's expansion and industry performance. The political factors have been significant in influencing the growth of Tesla Company. The Company can expand its financial muscle through government incentives related to efforts by countries in different parts of the world to minimize carbon release. The electrical and solar products of Tesla are likely to have a global acceptance, thus creating opportunities for faster growth. Similarly, the political stability in the US, China, and other parts of the world offers more excellent prospects for Tesla to make market penetration and record more revenue.
Economic
Economic dynamics such as growth rate and exchange rates influence big business like Tesla. For instance, the electric cars manufactured by Tesla have presented an opportunity for it to reduce battery costs leading to the affordability of the firm’s products. Additionally, the Company's products have been considered a panacea to renewable ...
114Global Business and StrategyEU BusinessSantosConleyha
1
14
Global Business and Strategy
EU Business School
Calvin Kammer
Introduction
A global business is a company that serves or operates in different countries worldwide. Due to international market openness, the global business environment has become so dynamic thus, the sustainability of any company will depend on the business strategy adopted (Morgan, et al 2019). To this end, this report will evaluate the global business and strategic objectives of Tesla and provide recommendations on the Company's strategic roadmap.
Background of Tesla Company
Tesla Company is an American automobile firm that has pioneered the world transition to eco-friendly energy by designing and manufacturing solar roof tiles, electric cars, and solar panels. The Company was established in 2003, and it operates in the US and China, but it plans to establish a manufacturing plant in Germany. Tesla reported improved sales in 2021 recording a total of 936,172 vehicles which represented an 87% growth compared to 2020 sales (Jiang, Shi & Li 2021).
External Business Environment Analysis
The external business environment is macro-factors that influence the business's operations but which are over and above the control of a single business entity Any reference?. To adequately understand how these factors impact the industry, we shall employ the PESTLE analysis. PESTLE analysis is a macro environment analysis tool which evaluates the external factors which influences the performance of the business. The analysis looks at how the political, economic, social, technological and legal elements impacts the operations of the company (Achinas et, al.2019). This model is relevant to case study of Tesla Company because it will give an in-depth understanding of the company’s external business environment and how the factors have impacted on its operation.
PESTLE ANALYSIS
Political
Sholihah, et al. (2019) notes that,Political factorsare government policies that influence businesses. For instance, trade policies can restrain a company's expansion and industry performance. The political factors have been significant in influencing the growth of Tesla Company. The Company can expand its financial muscle through government incentives related to efforts by countries in different parts of the world to minimize carbon release. The electrical and solar products of Tesla are likely to have a global acceptance, thus creating opportunities for faster growth. Similarly, the political stability in the US, China, and other parts of the world offers more excellent prospects for Tesla to make market penetration and record more revenue.
Economic
Economic dynamics such as growth rate and exchange rates influence big business like Tesla. For instance, the electric cars manufactured by Tesla have presented an opportunity for it to reduce battery costs leading to the affordability of the firm’s products. Additionally, the Company's products have been considered a panacea to renewable ...
Running head TESLA MOTORS 1TESLA MOTORS3Tesla Motors.docxtoltonkendal
Running head: TESLA MOTORS 1
TESLA MOTORS 3
Tesla Motors
1. Current Situation
Tesla Motors is a company that was founded in 2003 and is headquartered at Palo Alo in California. The company came up with an idea of creating an electric car with an attempt to outdo the performance of gasoline vehicles (Mangram, 2012). The owners of the company, Marc Tarpenning and Martin Eberhand, were inspired to come up with their company by a genius electric engineer, Nikola Tesla, came up with the current alternating current. Nicola Tesla also came up with a sports car that was run in an AC induction motor. Elon Musk, the major investor of Tesla Motors was a risk taker, interested in coming up with a vehicle that was a hundred percent electric, without having to compromise in any aspects of the car.
The first electric sedan launched by Tesla Motors referred to as the Model S was released in 2012. This car attained a safety rating of 5-stars because it was the car of the year in 2013. In a bid to increase performance, Tesla released another version of Model S, which has a dual motor. Additionally, the company also released Model X, which has better aspects than the two versions of Model S. Over time, the company has expanded its operation, and currently manufactures the electric cars in California, and Fremont, with expansion efforts in Lathrop and California.
As of the year 2016, the company has had a net revenue amounting $1,147,048. This amount was an increase in the company’s revenues from the previous year, which was at $939,880. The continuous increase in the company’s revenue has come about because of the reduction in costs by an average of $100,000. Tesla’s shares range at $220 per share, which is an increase from the previous levels whereby the shares had decreased to around $147. The improvement in the company’s revenue and shares is a result of the efforts in product development strategies. From the start of the company, the company has put over $900 million in the research and development activities aimed at improving the performance of its cars.
Strategy
The strategic alignment of Tesla Motors includes manufacturing a high-end vehicle, whose target consumers includes the wealthy individuals in the society. Moreover, the company has concentrated on providing its consumers with a highly priced vehicle, which has made it possible for the enlargement of its customer base. Due to this aspect, the company has managed to expand its operations, taking into consideration the development of a cheaper car that could be sold to the people of the lower social classes.
The company is building a network of up to 120kw fast supercharger equipment. It can replenish 170 miles of range in the battery pack in 30 mins.
2. Challenges and Major Problems
Tesla Motors has been faced by several issues over the years. One of the challenges that the company has experienced has been issues in the battery charging and pack fires. In 2013, three fire accidents were ...
Introduction, History of Tesla Motor Inc., Tesla Products, Financial stability of Tesla, Competitors Analysis, international Business Strategy of Tesla, Environmental analysis (PESTLE)
A brand new BEACON (Volume 5, Issue 9) with infographic, riddles and business crossword newly introduced in it.
Company Analysis- TESLA
Brand Analysis- APLLE INC.
Case Analysis- Mumbais Dabbawala
Concept of the Month - Blockchain
Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid scale, solar panels and solar roof tiles, as well as other related products and services.
Timeline of Tesla
2003 - Tesla Motors founded by Martin Eberhard and Marc Trepanning in San Carlos, California. They serve as its CEO and CFO, respectively.
2004 - Elon Musk invests $30 million and joins Tesla as the Chairman of its Board of Directors.
2006 - Tesla showcases the prototype for its first car, the all-electric Roadster.
2007 - Eberhard resigns as CEO of Tesla. He is replaced by interim CEO Michael Marks.
2007 - Ze'ev Drori takes over as Tesla's permanent CEO.
2008 - The Roadster enters production. Elon Musk receives the first vehicle produced.
2008 - Ze'ev Drori resigns as Tesla's CEO. He is replaced by Elon Musk who remains CEO to this day.
2008 - Tesla announces its plans for the Model S sedan.
2009 - Eberhard files a lawsuit against Tesla and Musk alleging that he was forced out of the company, and that Musk has taken credit for creating a company that Eberhard and Tarpenning built. He drops the suit later that year.
2009 - Facing financial troubles, Tesla seeks investment from Daimler AG and a loan from the Department of Energy.
2009 - Tesla relocates its headquarters to Palo Alto, where it remains to this day.
2010 - Tesla goes public, raising $226 million in its IPO.
2011 - Tesla showcases the prototype for its Model S, the company's first sedan.
2012 - The Model S sedan goes into full-time production.
2012 - Tesla discontinues production of the Roadster.
2012 - Tesla launches its first Supercharger charging stations with six locations in California.
2013 - Tesla posts its first quarterly profit.
2014 - Tesla announces its Nevada Gigafactory, where the company will manufacture the batteries for all of its products.
2015 - The company enters the solar power market, announcing a line of products to power homes and businesses based on a combination of solar panels and batteries.
2016 - Tesla announces plans for the Model 3 sedan, its first car aimed at a mass market.
2017 - Tesla Motors changes its name to Tesla, Inc. This remains the company's name to this day.
Todays-02.03.2021
Stock data of Tesla
Price-$718.43
Market Cap-$689.59B
1. RUNNING HEAD: Tesla Audit
Christopher Lee Branyord
Dr. Friske, Mark
BUSN313
25 JUNE 16
2. TeslaAudit 2
Tesla Motors is needing to have internal audit in order to identify awareness in the environment.
With understanding the current situation, strategic managers, external environment, internal
environment, analysis of strategic factors, strategic alternatives and recommended strategy, we
will be able to understand the situation with Tesla. With these diagnostics we will be able to
implement and evaluate the performance of Tesla having control.
3. TeslaAudit 3
Tesla Audit
Tesla has a very particular situation that haunts all car-manufacturing plants. The new
direction of transportation to create less environmental use in oil has brought many concerns to
civilization. The manufacturer’s of motor vehicles is in a race to create a new world-class vehicle
being able to lead the market. This market is to change the direction of most manufacturers
following this answer to present environmental conditions (Sanderson 2015).
Tesla Performance
Tesla has consumers waiting for the answers that await the sustainment for production.
This present situation in using lithium ion and having no suppliers for Model 3 has many
questioning the ability of the manufacturer. Tesla needs a major supplier in order to continue the
development of these vehicles. These rare earth materials is not only difficult for Tesla however
many vehicle manufacturers. Most are pursuing and insisting on new strategies to make different
vehicles to run on different materials then Oil and lithium Ion batteries.
The potential of Tesla from the current report is astounding. Tesla is expanding
internationally of over 42 countries and selling over 107 thousand vehicles. Tesla has generated
over 179 million in cash flow for shareholders and research & development (R&D). Tesla is
trying to create its own cell production making a Gigafactory in order to produce their batteries.
4. TeslaAudit 4
They have placed more then 1.5 billion in making this a priority in order to produce more vehicles
to the consumers. With only entering the market for 3 years ago has started growth of over 51
percent selling the Model S, seeing competitors drop on average of 10 percent (Tesla Report).
The posture of the Model S and the differentiation strategy of the company has surpassed
the market expectations. This helps them in creating the world-class vehicle being a new
manufacturer now the leader in automotive industry. Mission for Tesla is to make the most
premium vehicle at high cost. Then with each successful launch of vehicles lower prices to keep
beating the market down. This is being successful through the three years they have opened up the
doors. All R&D money is funded from free cash flow that was mentioned above to be 179
million. This will certainly happen if they continue to beat each year like the previous two.
Management Operations
Tesla has a clean mission in providing the world with best in class electric-cars. They have
achieved many stepping-stones in delivering the Model S having a very good foundation. One of
the key elements in Tesla is the board of directors. This is built of 7 individuals that have
extensive backgrounds in all areas. This helps them be successful in key points to help build the
mission of the business. The areas of their expertise is CEO having physics then 6 directors in
Global Supply Chain, Corporate Strategic Planning, Clean-tech Investment Practice, Operations,
R&D Engineer and Internet Engineer. They all have one particular skill combined in finance. This
is one skill you must have to help produce well thought strategies to be realistic. This happens to
be their strongest case in management is handling finances to produce longevity (Tesla Home).
The top management presents the board of directors with three particular skills. Elon
Musk is the CEO performing as Product Architect. With having history in design allows him to
5. TeslaAudit 5
outline the products the way he wants. He wants to provide the world with clean cars and he has
the skills to do it. JB Staubel is the Chief Technical Officer in charge of energy systems
engineering. Jason Wheeler who is a Financial Officer coming from Google, VP in finance. This
is interesting case of events along with all these individuals being also on the board of directors.
Shows how they get involved every step of the way in creating and developing the products and
the strategies to accomplish the mission set by Elon CEO of Telsa.
Environment Today
As mentioned above the environment is not supporting automotive vehicles to continue to
be gas hogs. This allows Tesla to be the world-class leader in clean sustainable vehicles ahead of
the competition. Their strategy is differentiation and allowing them to make money off of it to
hurt the other motor industries later as Tesla becomes number one in the world. Oil is driving fuel
prices calling for a new method of automotive transportation. Tesla has created this vehicle
earning the Environmental Leadership Award. This was given to them from Global Green USA
for creating all electric automobile (Tesla Home).
The one resource that is difficult to come by in all vehicles providing electric cars is
Lithium Ion. Having this one source being hard to come by and high demand for Tesla is
complicating the system to attain a supplier. Tesla to counter this has created a strategy in order to
have a Gigafactory to help produce Lithium and make there own supply stretch further. Many
critics are asking how green is the motor really along with stretching this Lithium Ion that is hard
to produce using this limited resource. They have also insisted that the amount of CO2 emissions
is similar of a small SUV. This is slowly malingering and possibly getting revoked of allowing
admissions in certain countries that fine these types of vehicles (Oremus p.1).
6. TeslaAudit 6
Tesla is looked up to from societal environment as economic answer to problems that
sustain the compass of our world. The technology that is brought through the years from Tesla has
allowed growth in battery capacity for longer sustainable energy and having self-driving cars.
This fundamental is backed up through government funding and allotting tax credit of 7500 US
dollars, to promote this transition. This is the transition that is needed to protect the environment
we live in (Euribe).
Motives Performing Desires
Strategy is built all around Tesla in this brand new market. This has been everyone’s
dream and now available in two different vehicles. These vehicles allow us to challenge the
market with two different classes. Roadster allows the challenge of performance and higher-class
targets. Model S is challenging most markets being the answer to many family cars. This assists
society to break the chain of oil demands.
The two markets above are targeted from the two desired outcomes of the owner. Tesla
mission is to present the world with a environmental clean vehicle. The second was being able to
give the world a high performance vehicle to challenge the competitors. These missions are being
challenged by the culture of Tesla. The culture is representing the idea of transparency in all
aspects. Elon announced that he is planning on releasing the patents of his electric cars in order to
have all the other manufacturers to climb on board. This allows open view of everything Tesla has
developed and promoted (Nicholson).
One resource we found that the business needs to hold onto is the employees. This has
been the key component to allow the business to develop and produce the all-electric car. They
have been able to produce a method to create a sustainable factory to be able to manufacture more
7. TeslaAudit 7
lithium then the rest of the world combined. This is extremely important for them to have the lead
they plan to continue. Being able to build 500,000 orders that the consumers are demanding by
2020 will require them to sustain this resource (Debord).
Analyzing Tesla
Tesla has much strength allowing this business to be in favor of current economy. The
biggest asset to them is being the leader in this new market. Being a leader has its disadvantages
allowing others to reap the benefits of Tesla when they enter the market. They have a strong
approach into the industry following the mission they have. The weakness to their plan is the
supply. They are answering this weakness in order to be able to supply their own. This would
allow them to have more strength over their supply to continue leading this market. This would
also allow them to lower the price and accomplish the strategy to be cost differentiation. They
would then be able to enter the market into different key leaders like Audi and BMW.
Opportunities are many into this brand new market created by Tesla. The world wants someone to
create a price affordable commute car, able to sustain it for long periods. Threats are many that
will be entering the market and challenging them with new clean energy vehicles. They must
close off the market and make sure they are ahead of the electric car industry.
They have many benefits that put’s them above the competitors and pronounces the
differentiation making the mission accomplished. The have to emplace rules being no Tesla
dealers, no inventory along with no negotiation on price. This is great on behalf of the company
and the consumer until more individuals enter this market. There is no middleman to take away
the mission of Tesla. This allows them to keep their brand and not allow the market to change
them. Tesla will not be able to continue these demands if they allow the patents above released
8. TeslaAudit 8
into the market. The demands that Tesla places onto the market will change dramatically when
others enter. This is important to create a timeline for when others enter the market.
Alternatives
The strategy at hand is differentiation to become cost differentiation later and lead the
market in electric car manufacturing. This is perfect strategy and will be the biggest benefit to
them if accomplished. They do need alternatives to have a contingent strategy. They best method
they need to do is global strategy. They have established a presence in the world so far however,
needs to place themselves into more markets to really place their brand above the competitors.
They need to jump into the next level of international vendors to global corporation.
The problem that needs to be evaluated is the timeline. This needs to be created in
evaluating when others enter the market. They must beat this timeline to be cost differentiation or
they will lose this market to the competitors. The demands they have specified will be agjusted if
they do not beat the timeline. This will make them not special to the market and just another car
brand. The timeline is laid out as competitors entering the market as 2018. This gives them a year
from being the only electric car manufacturer of clean sustainable energy into multiple.
From 2018 emplaced their brand into the current markets. They do need to establish a
stronger presence allowing the world to see what they are. Tesla are not an upper class vehicle
brand that is only for middle to higher class. They are creating vehicles to enter all classes into the
United States. If they place more emphasis on marketing then they would allow the established
brand to be placed harder in the industry.
The recommended strategy in order to keep the return of equity as high as 18 percent is
differentiation. They need to establish more products for consumers. They only have two markets
9. TeslaAudit 9
right now and it will hurt them if they do not produce a method for more markets. They need to
establish a way to power a truck from lithium ion and sustain energy to keep power torque high
for towing capacity. This would require a lot more money in R&D. They need assistance from
recruiting at colleges and universities. They need to establish a new foundation to grow more
consumers.
Implementation
Tesla has already established 170 million in shareholder value and R&D. This is
completely the direction they need to establish and keep them the leader of this new market they
have created. Tesla has not been placing the money into the correct atmosphere. They have been
trying to develop this new method of self-driving vehicles. The economy is not ready and the
roads are in no way shape or form able to comply with drivers in this world. They must change
methods and have a new strategy developing this new truck.
Implementing this will be strait into the money and resources. They need to establish what
they have in other resources and place the current items on hold. The money into R&D needs to
be 170 million in creating a green truck. This would establish a team of engineers to make a
world-class truck to allow individuals to cut the oil industry down. This would boost the economy
and all potential business owners. Your new market would be business owners in all fields across
the globe. They have the money to purchase vehicles in full to get Tesla out of debt. This would
then boost the stock and the cash flow immensely. From this you are able to produce the items
needed to create more markets and boost the company’s revenue (Wheetan pg. 335).
Control
10. TeslaAudit 10
The controls for the implementation will be difficult to implement and the ones to stop the
project is the board of directors. They would be the ones afraid of this new market and losing too
much money into R&D. They have the controls to be able to produce and develop the strategy
into this accomplishment. The managers are more then capable with all the other
accomplishments they have completed. You will need to control cash flow in order to place the
money where it needs to go. Many resources will be needed and financial advisors will need to
establish guidelines for controls.
The engineers will need new sets of ideas. This goes outside of the general method of
clean sustainable energy in longevity and focuses on power. The power would be best if grouped
with another firm. The best firm in assisting with this power is the leaders in combustion engines
being Ram. They would be able to assist in the new method to create power needed from
resources and personnel. This would be a powerful partner venture that could give the Tesla
Corporation what they need.
The necessary controls for keeping all systems secret is patents and trademarks. This is to
ensure that information doesn’t get into the wrong hands and allow for other competitors. They
would be able to create a contract for the partner venture to help enhance the industry they have
created. They must comply with these or it could lead to many influences in the market. They
must not release the patents they have already to help boost their timeline in this new strategy.
Conclusion
Tesla has started and led a new market helping the economy defeat many obstacles. The
environment restrictions will help boost the consumer’s needs of the product allowing them to
boost the economy. The government is assisting them in creating this new brand with tax credits
11. TeslaAudit 11
in sustainable green energy. The strategy is perfect for what the mission is trying to achieve. Tesla
is the number one in electric all clean transportation. They are trying to lead the market by cost
differentiation.
Tesla is not capable of delivering the vehciels in the numbers needed, they are not able to
make their own lithium ion batteries and they are unable to lower their prices. They need a
different plan to be able to complete this mission. They need to establish a better delivery of a
new market that will pay for the product and not just lease. With this causes new implementation
into the ability to place money in correct fields and creating the Joint Venture.
Tesla is a leader in this market and will soon have competitors. They must not release the
patents they have and establish new ones. They should create and make contracts with other
business operations to have more engineers to create this new market. Once they have
successfully made this market they are able to complete and fulfill their mission in cost
differentiation.
12. TeslaAudit 12
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13. TeslaAudit 13
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