Tesla Motors: Strategy and Business Analysis Case Study

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Introduction

Today, the main challenge Tesla Motors is to face lies in its innovative strategy. As long as the group has ambitions to provide high-quality batteries for electric vehicles, it has to solve two primary problems: the promotion of battery usage and the high cost of this product.

Tesla Motors Analysis

Tesla takes various measures to cope with the problems and to perform a successful, innovative policy. First of all, the company enlarges the customers’ awareness of its offers both via online resources and the relevant presentations performed in its showrooms. Secondly, the group eagerly encourages cooperation with other auto manufacturers. It offers them a chance to buy high-quality electric products that the former can use to install in their products. Moreover, Tesla performs a significant contribution to the development of the charging stations sector. The accessibility of such stations is highly important for the company that is interested in electric cars’ distribution.

Apart from the stations’ foundation the company also considers the work out of other kinds of charging facilities, such as electric plug-ins in public places. The company’s main battery supplier is Panasonic, which serves as a significant support to Tesla’s image. Nevertheless, the cost of the battery for electronic vehicles is considerable which leads to the inevitable cell shortage. To solve this problem Tesla has to invest in the battery innovation industry and the foundation of new factories capable of producing a sufficient quality of batteries at a reasonable price.

The perspectives of the company’s innovative plans seem to be ambivalent. On the one hand, the problem of large expenses appears to remain unsolved. One can suppose that cooperation with Panasonic as the only company’s supplier turns out to be insufficiently effective. Tesla could try to enlarge its collaboration base thus attempt to solve the cost and shortage problem via new partnership. Besides, as far as cylindrical usage seems to fail to prove its cost-benefit, the group might begin looking for some alternative variants. Furthermore, the numerous troubles connected with charging operations prevent Tesla Motors from its firm establishment in the global market.

Therefore, the company’s primary concern should be to liquidate all the charging difficulties a customer might experience. Besides, the group should not cease to maintain the image of the true innovator. It means they are to perform constant changes and improvements in the battery production process, such as the usage of the new materials and the launch of progressive techniques.

Conclusion

The current state of events gives grounds to suppose that Tesla Motors is likely to overcome all the innovative challenges in a short time. Firstly, the green image of its production is in great demand nowadays. Secondly, the usage of electric vehicles guarantee’s low customer emissions that make it particularly attractive. Thirdly, the company promises to supply its customers with cars that can dismantle a stereotype about electric vehicles. According to the managers’ words, Tesla’s cars will have the same characteristics that the standard ones have. It means they will be the same fast, comfortable and good-looking. This point is of particular importance as the reason for people’s unwillingness to purchase an electric car is often the fear that it will be different from what they are used to. Thus, the company’s policy seems to be reasonable and efficient.

References

Newton, T. (1999). How Cars Work (1st ed.). Black Apple Pr.

Baden-Fuller, C., & Haefliger, S. (2013). Business Models and Technological Innovation.

Long Range Planning, 46(6), 419–426. Web.

Baden-Fuller, C., & Haefliger, S. (2013). Business Models and Technological Innovation.

Long Range Planning, 46(6), 419–426. Web.

Baden-Fuller, C., & Haefliger, S. (2013). Business Models and Technological Innovation.

Long Range Planning, 46(6), 419–426. Web.

Baden-Fuller, C., & Haefliger, S. (2013). Business Models and Technological Innovation.

Long Range Planning, 46(6), 419–426. Web.

C. Baden‐Fuller, Stefan Haefliger; Published 2013; Business Models and Technological Innovation; Long Range Planning, 46(6), 419-426.

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