Evaluating tesla company

Tesla Motors manufactures energy storage solutions as well as completely electric automobiles, solar installations, and energy storage equipment. However, the Silicon Valley-based business is best renowned for its very effective totally electric vehicles. Tesla's mission and vision statements are in line with the company's emphasis on energy innovation. The main objective of Tesla Motors, which is to demonstrate that electric vehicles are superior to gasoline-powered cars, is described in the company's mission statement. By producing environmentally friendly cars, the group essentially aims to aid the global transition to cleaner driving. In order to fulfill their goals, Tesla's vision places a strong emphasis brand image in their efforts to achieve future sustainability (Mangram, 2012). It is the driver behind the company’s purpose of enabling the transition to electric vehicles. However, this vision fails to incorporate shareholder value and does not explain where the business wants to be in the future regarding financial position and competition.

Strategies

There are several strategies used by Tesla Motors to help build its sustainable competitive advantage and grow its brand presence and market. The first approach is differentiation where this company creates fully electric and luxurious cars that very few brands develop. As a result, Tesla has been outstanding in the industry by focusing on sustainability in terms of vehicles and energy. The second strategy is market development. Tesla has successfully expanded its markets, particularly in North America, Europe, and Asia. The third plan is product development, which Tesla uses to grow its customer base. With a wide range of products, this firm has managed to reduce the competitive threat and differentiate its brand. The final key strategy at Tesla Motors is innovation. Evidently, the company invests a lot of resources to produce new and better products, which are environment-friendly (Bohnsack, Pinkse, & Kolk, 2014). As a result, the business gains more customers who are interested in sustainable products and energy.

Recommendations

New Vision

Tesla Motors, Inc.’s vision statement efficiently outlines and describes the goals of the business. However, the statement does not incorporate the business endeavors, given that the company does not exist just to serve the customers. Additionally, Tesla’s vision only expresses its intention of being the leader of the world’s transition to electric cars; it fails to define where the company wishes to be in future in terms of financial position. As such, a new vision is required, which will include all critical aspects entailed in the company (Moritz, Redlich, Krenz, Buxbaum-Conradi, & Wulfsberg, 2015,). For instance, the vision could be to create the most compelling range of products of all times by driving the world’s transition to sustainability in as far as energy, automobiles, and storage systems are concerned. Such a statement is well adjusted to reflect the organization’s interest in diverse products.

New Strategies and Supporting Objectives

Essentially, all companies operate as part of a value system; either connected with different suppliers or working in collaboration to deliver products and services. Whether a business decides to use the vertical, forward or backward strategy, the purpose should be to enjoy greater economies of scale. Although Tesla has the capacity to operate independently, it should consider integration strategies. Through forward integration, the company can merge with Solar City. This will enable the company to create solar roof tiles, which are more insulative and durable than a traditional roof. In the same way, the company can merge with distributor companies to make sure that the company’s products are distributed widely (Mangram, 2012). As a result, Tesla will reach to more consumers in a more cost-effective manner.

In terms of intensive strategies, Tesla can incorporate the market development concept to help launch their products in new geographic areas. In essence, there are countries where Tesla has little or no presence in the market. Adopting the market development strategy will ensure that the company is able to enter new markets, especially on the international platform. Therefore, Tesla should approach new channels of distribution, which are of good quality, inexpensive, and reliable. Considering that the company is successful in its current operations, and it has created a sustainable competitive advantage, Tesla can venture into untapped markets available (Bohnsack, Pinkse, & Kolk, 2014). If the company maintains its consistency in the new markets, it will convert into a global business.

Although Tesla Motors Inc. is popular for creating high performance fully electric vehicles, it is evident that they are venturing into new products. As such, the company should focus more on dealing with diverse markets in efforts to address a wide population with different needs. It is of the essence to recognize that diversification does not have to be related to automobiles; there is a wide range of unrelated products the company can consider.

Analysis

For a while back, tesla has been trying to fit in the motor industry. They have employed different techniques to assist then venturing into the market. The purpose of this case study is to dig dip into these types of strategy plans employed by tesla, and how they affect the growth of the tesla motor company. There are for stages of growth in an organization, this are the phases determine the position of the company in terms of development. Tesla is now in a consolidated cycle of the organizational growth this is where the company is at its peak, tesla is currently fighting from getting to a decline stage. This is because tesla despite the fact that it has done better for the last decades, currently its developing ideas not only to keep the company standing but also to rescue the company from bankruptcy. According to wired, Tesla Motors made some of the world's biggest, best-known companies look stuffy as it charged electric cars with sex appeal, built a zealous fan base, set records for performance and quality, and even made its cars drive themselves all while dodging bankruptcy and even flirting with illegality to keep up its frenetic pace (Stewart, 2016).

Conclusion

In everyday operations, businesses are faced with an inevitable threat of competition; also, other companies are always looking for ways to steal your customers or market share. Therefore, Tesla should consider the retrenchment strategy where it will restructure its business operations to align them the new vision of the company. Moreover, this approach will play a significant role in reducing the expenses of the company, thereby promoting a more financially stable firm. Since Tesla is focused on sustainable energy, it can withdraw from storage systems markets. As a result, the organization will have adequate resources to ensure innovation and market development without adversely affecting the company’s financial position.

References

Bohnsack, R., Pinkse, J., & Kolk, A. (2014). Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles. Research Policy, 43(2), pp. 284-300.

Mangram, M.E. (2012). The globalization of Tesla Motors: A strategic marketing plan analysis. Journal of Strategic Marketing, 20(4), pp. 289-312.

Moritz, M., Redlich, T., Krenz, P., Buxbaum-Conradi, S., & Wulfsberg, J.P. (2015). August. Tesla Motors, Inc.: Pioneer towards a new strategic approach in the automobile industry along the open source movement? In Management of Engineering and Technology (PICMET), 2015 Portland International Conference on (pp. 85-92). IEEE.

Stewart, jack (2016). 2017 will be the year tesla reigns supreme—or finally flops WIERED, https://www.wired.com/2016/12/2017-will-year-tesla-reigns-supreme-finally-flops/