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 business model
…show more content…
The program promises to buy back the cars after three years, and to pay 47% to 50% of its initial price. This method aims to match what other German luxury cars are valued for trade-in. In May 2015, Tesla started selling refurbished Model S cars in the USA. By end of month, company had sold 1500 cars to younger, less wealthy buyers (Caldwell 2015). The CPO program is import for Tesla’s growth, since it will enable the company to grow even more and bring more revenues. When Tesla implements the CPO program globally, the company will be able to reach even bigger shares of the international market, by allowing younger and less affluent costumers to obtain on of its used vehicles. By allowing less affluent costumers to obtain a used car, Tesla is building costumer loyalty to the brand and in the long run that loyalty may be reflected on increase sales of future -more affordable- …show more content…
As the company prepares to start producing high volume of Model X, and Model 3 vehicles, the supply for batteries will be crucial for the growth of the company and the growth if its market share. The company has responded to this problem by starting the construction of its own battery production plant, the “Gigafactory”, to be located near Reno, Nevada. This plant is expected to start producing batteries in 2016 (Tesla Motors). By producing its own batteries, Tesla will depend less from other independent suppliers, at the same time the company will reduce its cost of production and will guarantee the quality of its products and the preservation of the brand’s prestige. Exclusive focus on electric vehicles and electric vehicle components, as well as its history of vehicles development and production, however, “are the basis on which we can compete in the global automotive market in spite of the challenges posed by our competitors” (Tesla Motors,
By creating innovative ways such as this sets themselves apart from their competitors in order to affect the buying power by making it more attractive to buyers. Their supplier level is low since buyers have several choices on who they want their provider to be. There are several providers for cable, internet, and mobiles making price and quality of product reasons that buyers decide on a particular product. Depending on the product that is offered the threat of substitute products or services can be either high or low. The threat to cable tends to be the highest since there are alternatives ways to watch the shows or movies people would like.
Cars are the most important products in the modern lifestyle. Whether it’s going to work, school, the mall, or even your friend’s house, it’s likely that you will be using a car to get there. As you all know, cars can have drastically different prices and look drastically different as well. I’m sure everyone here has a car, and I’m also sure everyone here will be buying another car in the future. Whether you want a car that can fit a large amount of people, or a sports car that can go extremely fast, an electric car will almost always be the best option for you.
Moreover, Musk says the "overarching purpose" of Tesla Motors is "to facilitate expedite the move from a mine-and-burn organic compound economy toward a star electrical economy, that he feel to be the first, however not exclusive. That's beyond any doubt a noble and socially
Tesla Motors is an American-based company that deals majorly with designing, manufacturing and selling of electric cars as well as electric vehicle powertrain components. Since its formation by a group of Silicon Valley engineers in 2003, Tesla Motors Company has gained global fame and incomparable customer loyalty. Tesla Motors have significantly grown from the year of its commencement till now. The sales and revenue of the company has increased year after year which is evident from its annual report. In the year 2011, the company has generated revenue of 204.224 million which has considerably increased to 4.05 billion in 2015 (Marketwatch, 2016).
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.
Cars are the most important products in the modern lifestyle. Whether it’s going to work, school, the mall, or even your friend’s house, it’s likely that you will be using a car to get there. I’m sure everyone here has a car, and I’m also sure everyone here will be buying another car in the future. Whether you want a car that can fit a large amount of people, or a sports car that can go extremely fast, an electric car will almost always be the best option for you.
“Why Electric Cars are the Future” Introduction Attention Getter: It was Sunday at park, two college students were discussing about cars. One of them said that imagine about two decades ago, it appeared there was no effective alternative to the gasoline and oil, but now there is a better, cleaner, and more effective substitute to them: electricity. Although electric engines are not so widespread, more and more people consider changing their gasoline-fueled vehicles to electric cars. Then I discovered why electric cars are the future.
The vision of Tesla is ‘to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles’. Based on the mission and vision, the company’s strategy was determined. Tesla’s strategy is to enter at the high end of the market, where customers are prepared to pay a premium, and then drive down market as fast as possible to higher unit volume and lower prices with each successive model. (Musk,
Electric vehicles face two main technological challenges, high costs and suboptimal batteries, this is where Tesla has taken the lead on its competitors, their batteries are cheaper, charge faster and have a better range than those of the competition (200+ miles, up to a maximum of 300 miles), the infrastructure for charging these vehicles is also rapidly developing. (technologyreview.com, How Tesla Is Driving Electric Car Innovation) The major innovation that is coming is fully autonomous vehicles, Tesla, Inc. has stated that all their vehicles are fully equipped with the software required and that total autonomy will start to
The automotive industry is facing changes due to ecological impacts on the environment. Many automotive manufacturers such as BMW and Audi are now entering into the electric car industry where Tesla has established itself in. In this environment, there is a need for rapid innovation a firm 's capability to produce new technological products become crucial to survival in this industry. For this reason, human relations management will be beneficial to an organization as it allows creativity in employees who will be able to respond to changes in the environment efficiently and quickly which gives a company flexibility. " 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).
Organisations have long struggled to retain employees without pouring in too many resources into incentives, however there are many other factors that influence the motivation for an employee to work for an organisation. The following factors are very important to retaining employees: ➔ Vision and Mission: Each organisation has a vision set by its leaders, a ground basis on which it stands for. This vision is the key for driving innovation, research and development for the company. Vision is also the driving force and motivation for its employees, to push their limits and to outperform the competition.
Therefore, Tesla needs to train the marketing team into an attempt and adopt a proactive or innovative marketing strategy. This will increase the competitiveness of Tesla and rapidly increase the market share. Solution of Culture Barriers Tesla 's marketing manager needs to understand the local market environment before Tesla enters new markets. For example, make, a, proposal, and collection of local data. Managers should follow the local environment and local preferences and other information to make a proposal.
Amazon’s competitive strategy is cost leadership. Amazon has achieved a lot on a great scale that it gets the best prices from its vendors so they can operate in very flexible and thin margins and sell their items easily at retail prices and make money. They also provide shipping products for a reasonable cheap price. They also have improved their warehouses by giving some space to other sellers who want to sell their items through Amazon. They differentiate and provide better quality than their competitors across the industry.
The production process of Tesla’s cars is complicated due to the involvement of complex battery technology in the process of building the car. Tesla’s image consists of creating the car of the future and with this Tesla has to incorporate all the new technologies in the market, that have not yet been supplied by its competitors in standard cars with fuel engines. Tesla’s products consist of three official models. The first model was developed in 2006 and is called the roadster followed by the Model S, which was introduced in 2008 and the latest
Furthermore, Tesla also has opened a factory in Tilburg, Netherlands to catalyse our expansion plans. Tilburg being near to the Rotterdam port and further located in the heart of Europe was the main reason behind choosing it as a preferred destination. The role of this plant is to import vehicles and make sure that the supply meets the demand. Other than that, it also handles operations for the Europe and other neighbouring countries. ("Tesla Factory | Tesla Motors") Type of warehousing We at Tesla use Breakbulk warehousing for our operations.