Tesla Motors: Overview, Mission, Strategies And SWOT Analysis
Question
Tesla Motors is an automobile based organization which has its origin in the United States of America and the operations are related to the energy and automotive products. The organization has its headquarter in Paulo Alto, California. Tesla Motors mainly specialises in the manufacture of electric cars and solar panels. The assembly plants and factories of Tesla are located in Fremont California. The different models which are sold by Tesla in the automobile based industry include, Model S, Model X, Model 3. The organization was established in the year 2003 by the two engineers named Marc Tarpenning and Martin Eberhard (Tesla.com., 2018).
The operations of Tesla in the automobile industry were further joined by J.B Straubel, Ian Wright and Elon Musk and they became the co-founders of Tesla. The core values which have been developed and are followed by Tesla are based on using the best available technologies in order to offer the products. Encouragement and respect needs to be provided to the employees in order to increase the revenue levels. Learning based activities need to be continued and the environment needs to be respected as well. The industry in which Tesla Motors has its operations is highly competitive in nature and changes in the environment are able to affect the levels of profitability in a huge manner (Tesla.com., 2018).
Tesla has responded to the changes in needs of the consumers with the help of its products. The electric cars have played a major role in the need for usage of sustainable energy in order to operate the products. The usage of electric cars has been able to play a key role in the ways by which Tesla has developed its position in the highly competitive automobile based industry. The organizations which are a part of the industry thereby need to fulfil the needs of consumers with the help of proper products in order to maintain their positions (Tesla.com., 2018).
The customer base of Tesla Motors belongs to a particular age group who are highly tech-savvy in nature. The individuals who belong to the current target market in the industry are the entrepreneurs, business executives and the early adopters. The customers of Tesla products are mainly those males who are looking for premium level of luxury cars (Annarelli & Nonino, 2016). The individuals who thereby form an important part of the target market group already own different luxury brands like, Mercedes, Audi and BMW.
The mission statement which has been formed by Tesla Motors in the automobile based industry is based on the ways of forecasting the accurate solutions which are based on unparalleled levels of services and world class level reliability.
- Tesla Motors aims at applying the bright minds and best technologies in order to face the new challenges. The organization aims at cutting corners rather than compromising.
- Tesla aims at improving the accuracy levels of the forecasts on a constant basis in order to increase the reliability on the products and services (Blackwell & Eppler, 2014).
- The changes which are taking in the external environment are able to affect the operations of Tesla and the company aims at understanding the changes and adapt the operations in an effective manner.
- Tesla Motors respects the environment in which the organization operates and reduce the strain levels which are provided by humans (Elmes & Barry, 2017).
The Tesla group of companies has aimed at becoming a provider of the energy based industry on a global basis. The organization aims at creating a highly compelling car based company in the 21st century with the help of support which is provided to the transition which is made by the world towards electric vehicles. The focus which Tesla has on the usage of renewable energy is emphasized with the help of this corporate vision. The electric vehicle based market is addressed effectively by the vision based statement of Tesla Motors. The growth of the market of renewable energy is facilitated by the operations of Tesla (Engert, Rauter & Baumgartner, 2016).
Assignment Overview
The corporate level strategies of Tesla were based on the ways by which the organization has been able to develop its position in the highly competitive automobile industry. The organization aimed at exploiting different technologies in more aggressive nature as compared to the others in the industry. Tesla Motors thereby aims at providing response to the changes which can take place in the external environment. The high performance based cars which are provided by the organization are thereby based on needs of the consumers and changes in the environment (Hanson et al., 2016). For example, the Model S named car of Tesla is able to operate based on the renewable energy resources which is a need of the current environment.
The business level strategy which is developed by Telstra is based on Porter’s generic strategy which is related to broad differentiation in the automobile industry. The organization aims at developing competitive advantage in the industry with the help of this growth strategy. The competitiveness of the products which are offered by Tesla is based on the ways by which they are able to integrate environment friendly types of technologies which consider huge majority of the automobiles. The potential customers of Tesla Motors are attracted towards the products due to the levels of uniqueness of the products (Hill, Jones & Schilling, 2014). Broad differentiation strategy is thereby based on the products which are offered to the premium customers in the automobile industry.
The strengths of Tesla are based on improvement and growth of the organization in the automobile based industry. The organization is empowered by the business strengths which is helpful in competing with the others in the industry. Strong brand name of Tesla has been a major support to the operations of Tesla. The processes which have been implemented by the organization are innovative and the production based processes are also managed effectively. The energy based solutions which are provided by Tesla are based on business based goals which have been set by Elon Musk (Moutinho & Phillips, 2018).
The organizational performance is affected by some major weaknesses of the organization in the automobile industry. The presence of Tesla in the automobile based industry is limited and the supply chain is also not effective. Most of the revenues of Tesla are generated from the US and the presence in China is also low. The products which are offered by Tesla are expensive as compared to the products which are offered by the competitors. The high prices are able to prevent the levels of growth in market share and the customer base as well. The needs based on reforming the strategies based on global expansion are related to the weaknesses of Tesla (Sminia, 2017).
The external opportunities which are provided to Tesla are based on development and growth of the organization in the automobile industry. The performance levels of the business can be improved and growth can be increased with the help of different opportunities which are offered by Tesla. Different opportunities which are provided to Tesla mainly include, expansion of global supply chain, diversification of the business and expansion of global sales. The growth of Tesla is thereby compared to a large organization like General Motors (Wheelen et al., 2017).
The aggressive levels of competition which are faced by Tesla are considered to be major levels of threats. The organization is also facing a major threat based on the fluctuations which have taken place in the prices of different materials. The dealership based regulations are also considered to be major levels of threats which are able to affect the growth of Tesla (Moutinho & Phillips, 2018).
References
Annarelli, A., & Nonino, F. (2016). Strategic and operational management of organizational resilience: Current state of research and future directions. Omega, 62, 1-18.
Blackwell, R., & Eppler, D. (2014). An approach to strategic situation analysis: Using models as analytical tools. Journal of Global Business Management, 10(1), 80.
Elmes, M., & Barry, D. (2017). Strategy retold: Toward a narrative view of strategic discourse. In The Aesthetic Turn in Management (pp. 39-62). Routledge.
Engert, S., Rauter, R., & Baumgartner, R. J. (2016). Exploring the integration of corporate sustainability into strategic management: a literature review. Journal of cleaner production, 112, 2833-2850.
Hanson, D., Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Competitiveness and globalisation. Cengage AU.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Moutinho, L., & Phillips, P. (2018). Strategic analysis. In Contemporary Issues in Strategic Management (pp. 46-79). Routledge.
Sminia, H. (2017). Strategic management basics. In The Strategic Manager (pp. 13-29). Routledge.
Tesla.com. (2018). Electric Cars, Solar Panels & Clean Energy Storage | Tesla. Retrieved from https://www.tesla.com/
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. pearson.