Regional divisions use to the local market better, so some of the operation decision such as marketing campaign or sales service can be made by the regional divisions. (Dyer & Gregersen,2016) Furthermore, Tesla need to control every steps in the product chain by central headquarter to reduce the cost and have better management on the product deliver, so that Tesla can have more efficiency performance to meet the market needs. (Dyer &
Stakeholders and businesses have an effect on one another, thereby emphasizing the importance of company social responsibility and company citizenship. Tesla’s automotive business directly and indirectly affects stakeholders. As such, it's essential for the company to keep up an adequate corporate social responsibility strategy to make sure lowest negative impact and best profit to stakeholders. With a powerful brand as a manufacturer of electrical vehicles, Tesla has vital opportunities to point out the globe what a serious international firm’s company social responsibility efforts will do to satisfy the interests of stakeholders. Tesla Motors, Inc. addresses stakeholders’ interests through a company social responsibility strategy that focuses on property and environmental friendliness of automotive products.
Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders. The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders. (UNIDO, n.d.) Within Tesla, corporate social responsibility is very important.
3.Company Strategy For a company like Tesla, or any other company, having a defined and attainable strategy for the future can determine its success or its failure. Tesla’s strategy has been to emulate typical technological-technological products life cycles and initially enter automotive market with an expensive, high-end product targeted at affluent buyers. As the company, its products, and costumer’s acceptance matured, it is moving into a larger, more competitive markets at lower price points. Musk constantly maintained from then beginning that “Tesla’s long term strategic goal was to create affordable mass market electric vehicles” (Fehrenbacker). One innovative element of Tesla’s strategy is its distribution methods.
Tesla has not historically employed a cost leadership strategy; one can observe that their plans are to become one broad cost leader in the entire Electric passenger vehicle segment targeting Middle class rather the premium luxury segment. The focus is all shifted from A Niche differentiator to a Broad cost Leadership strategy. Fostering an Ecosystem around Electric Vehicles would help only Tesla. More the Suppliers lower the cost would be and more widespread the technology with diminishing incentives for innovators. So Tesla needs to see the right time to Milk the EV Cars as being a first entrant before the market becomes total oligopoly in
Company background Tesla Motors Company was established by Martin Eberhard and Marc Tarpenning in California 's Silicon Valley area in 2003. It is a company specialize in automotive and energy Storage technology that involves designs, manufactures, and sells luxury electric cars, electric vehicle powertrain components and battery products. The company believes that electric cars could be better than gasoline-powered cars and it will be the future trend of car market. Tesla committed to developing diversity model to suit different type of user requirement and each new generation of the car would be increasingly affordable.
"CEO Elon Musk created a master plan to compete with other automotive manufactures which were to Build sports car, use that money to develop an affordable car, use that capital to create more affordable vehicles, produce zero-emission electric vehicle power generation options (Tesla)." Tesla 's team were also able to create an autopilot function which allows the car to drive itself to stay ahead of the
The buildings are leased, but all the stores are entirely owned and operated by Tesla. The retail locations double as service centres, where customers can get maintenance and repairs done. Moreover, the company operates a network of 11 of its proprietary superchargers that allow Tesla car owners to quickly charge their vehicles. To further expand its charging network, Tesla has partnered with local companies to offer additional chargers at select commercial locations. 3.
This is a complete shift from the policy adopted by company in safeguarding and patenting its technical know-how for competitive advantage. As per the company, to advance its objective of providing sustainable transport, it is best suited to open up its know-how to other manufacturers so that massive adoption of electric vehicles as a substitute for gasoline powered vehicles takes place. The company hopes that it will create a fast growing and bigger market for electric vehicles, thorough which Tesla Motors will also eventually benefit. The company also believes that technology leadership is not defined by patents, but its ability to attract the most talented engineers.  Competitor Analysis Tesla Motor is simply the leader in the product range of Electric Vehicle.
Using a differentiated product, low prices, and smartly placed pop-up stores, Tesla Motors, markets Model S in their social media platform “Tesla Motors Supplier Portal”, as a new, reasonably-priced, eco-friendly car that it sells in regions resided by the desired target, which is the upper-middle class. Well, theirs is a social media marketing strategy. Through differentiation strategies, low prices, as well as efficient product placement, Tesla Motor’s marketing strategy is effective. This marketing strategy connects with the changes going on in the consumer decision journey in the modern world considering that they can view and customize their order right from their computer screens which does away with another step and raises efficiency.