Resources and capabilities that big automotive firms have that Tesla may be lacking In the recent past, Tesla has been noted as a great competitor in the automotive industry. This is attributed to its three huge competitive advantages. Generally, the advantage lies in its ability to bring about innovative disruption in the industry. This include; a strong battery supply chain that is sustainable in itself, a supercharger network celebrated by the customers and a software system several leagues ahead of its competitors (Zach, 2015). However, despite Tesla’s internal competencies and a reputation of building exquisite products, it still encounters lack of major resources and capabilities that its competitors own. Building a car takes years or …show more content…
What does that tell us, Tesla may be having great challenges when it comes to resources and key capabilities? These include; The focus of Tesla Company is on a niche in the automotive industry, which is building and selling electric cars. To a company like General Motors, the electric cars line of business is considered a side business, hence it only needs to study the patterns of Tesla’s cars then build on of its kind that will take Tesla out of business (Debord, 2015). In addition, the economy is also working against Tesla as the gas and oil prices are dropping at a steady but positive way. This would render Tesla’s business unattractive, as people will be able to afford other types of cars other than the electric cars. Hence, the market economies may not be that favorable to Tesla as they are for other automotive sector market …show more content…
As the business, people put it, to maximize the wealth of shareholders (Peavler, 2016). This could be done by pursuing more of an immediate reason that will realize the shareholders wealth maximization goal. However, this main reason may fail to be realized as most mergers depict negative results. In the Tesla- Solar City merger deal, the main reason for the merging is for both companies to enjoy a platform for new channels of distribution and product integrations that will enable both companies realize a greater good in the end (Lambert, 2016). For Tesla, its aim is to gain the infrastructure and hardware that solar city has for it to integrate solar installations into the its home battery pack solutions. Consequently, this move will cut down the potential costs that the company would have to incur in order to do solar installations in its home battery pack solutions hence making it easier for it to implement its goals as now, only a solar installer partner will be needed to affect this move. On the other hand, solar city is at the verge of launching new solar panels that are focused on increasing the value of a house (Lambert, 2016). Wow! What a lofty
Tesla Motors initially gained widespread attention by manufacturing the Tesla Roadster, the primary totally electrical sports automobile. The company's second vehicle was the Model S, a completely electrical luxury sedan. Tesla additionally markets electrical powertrain elements, as well as lithium-ion battery packs, to automakers, as well as engineer and Toyota. Tesla's CEO, Elon Musk, has said he envisions Tesla as an independent maker, geared toward eventually providing electrical cars worth cheap to the typical client.
By having robots and equipment designed specifically for the company, Tesla guarantees and efficient development and manufacturing process of their cars.
Electric cars are attempting to bring on an uprising. A modern company, Tesla Motors, is bringing the all-electric car to life. Tesla has been very successful in the past couple of years, engineering a vehicle that will impress safety standards. Although it has been quite a bumpy ride along the way for CEO and founder Elon Musk of Tesla Motors. Tesla has big plans for the future. However, the plans will not be necessary unless Tesla is allowed to sell their vehicles directly to the consumer and not through dealerships.
As I mentioned above, Tesla sets themselves apart from competitors by fueling the cost of their own supply to produce lithium-ion battery packs used to power their automobiles. In the second automobile, the Model S sedan that Tesla designed, developed and manufactured, more than forty percent of the total cost comes from the manufacturing of the battery pack used to power the luxury sedan. The rising variable cost of technology is why the newly activated Gigifactory is needed. The Gigafactory will be the production line in assembling the battery packs. The goal is to supply battery packs for mass production for models that have already been introduced, and to produce less expensive battery packs for future models. (Young, 2015) “The full activation of the Gigafactory carries existential significance for Tesla, representing a new sense of urgency at a company known for its unreachable deadlines.” (Randall, 2017) The new challenge that Tesla faces is producing a battery pack to the new Model 3 automobile. Ultimately, this model will be more cost efficient for consumers, proving to be about $30,000 cheaper than the Model S sedan. The
The contraposition for Tesla Motors is the rapid service received. Despite not having a traditional infrastructure, the company beats it opponents in its operational expeditiousness. The Palo Alto automaker’s response time for issues is often overnight, and always beyond convention. One customer with some play in his gears had his entire drivetrain replaced.
Tesla Motors Case Study Tesla Motors is a company that produces and sells automobiles. Tesla is not an old automobile company. Tesla specializes in all electric cars that run 100 percent on battery and focuses on the future. Tesla is looking into the future and realizes that fossil fuels will eventually run out. Tesla is moving toward a zero-emission future for the better.
This has resulted in exposing many automobile users to unpredictable prices of fuel. These issues were, however, the reason for the inception of Tesla Motors so as to bring into existence another set of automotive which serves the similar purpose but uses another form of energy that is electricity to drive them instead of the disadvantageous gasoline-powered engine. This invention was influenced by a number of factors in terms of its planning and performance (Hunger, 2010). Factors affecting Tesla’s planning and performance. The success of any organization, just like the Tesla Motor, largely depends on the planning of the activities by the management team in the company.
Despite its success, Tesla Motors has been facing serious challenges throughout its history, for example:
Chiefly, and most apparently, it is the goal of Tesla Motor to generate demand for Tesla vehicles (Andrade, Holloway, Payne, Roy & Sheffield, 2015). In turn, demand will drive leads to the Tesla sales team (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Tesla will continue to build long-term brand awareness, in addition to continual management of corporate reputation (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Tesla Motors will expertly manage the existing customer base to create loyalty and increase customer referrals (Andrade, Holloway, Payne, Roy & Sheffield, 2015). Additionally , Tesla Motors hopes to enable customer input into the product development process (Andrade, Holloway, Payne, Roy & Sheffield, 2015).
In fact the electric vehicle has been regarded as the best alternative to fuel cars in the future. Because the electric vehicle will not run by fuel which has been considered by many experts in many years later will be exhausted. As a result, world’s auto giants competitively invest heavily in electric vehicle research and development. For instance Tesla Motors which has been the pioneer of electric vehicles in the world is now gaining ever-increasing popularity globally. Tesla Motors change the global energy structure and provide a paradigm shift to the automobile industry. Other than that it contributes a lot to solving dependency of global transportation on oil which is one of the most important culprits for global climate change. However Tesla also suffers from some flaws that hinder the development of electric vehicles. For example the expensive production costs make the market price of the Tesla is difficult to achieve expected standard. Consequently the electric vehicle is difficult as popular as a normal car. In fact ordinary consumers will pay more attention to the economy of a vehicle but not whether it is environmental friendly. In addition the low battery life cannot meet the needs of people travelling long distances. Actually Tesla Models has promised that they would establish rapid charging stations network across the United States and all of Tesla 's electric car charging stations can be quickly filled with
Tesla Motors is a California based pioneer in the manufacture of electric vehicles. The company pursues the goal of transitioning the world to a sustainable means of transport with a range of affordable electric cars. Tesla Motors started out as a company in the year 2003. It was founded by Mark Tarpenning and Martin Eberhand for the creation of efficient electric cars. The company’s chairman is Elon Musk, who has spearheaded the company’s major investments and has also been instrumental in the company’s product and corporate development. Tesla Motors is a large company and employs over 80 people including in U.K., Taiwan and California. The groups of employees reflect the nature of the vehicles of the company since they have diverse experience in software, automation and electronics.
Tesla has managed to build a notable brand name for itself not in the electric car market, but in the overall automotive industry. Its brand performance offers a robust, reliable and unique image that gives customers the satisfaction that electric cars can be stylish, reliable, hassle-free and much less bulky than internal combustion engine vehicles.
One of the biggest strengths is obviously the company’s wide range of vehicles. Not only does it cover all segments including hatchback models and electric vehicles, but the company also has commercial vehicles such as buses and trucks (“Chevrolet SWOT, 2015). Another strength within the product mix is the almost infinite amount of technology that the company can provide with so many vehicle models. With creating hybrid and plugin version of vehicles like the Malibu and Tahoe, the company clearly as a great advantage over other automobile companies (“Chevrolet SWOT,
He's skilled at partnering with other companies to develop new technology for them. These include Toyota and Daimier AG, which have also become investors in Tesla (Levi, 2013). Tesla is a small and focused company, nimble enough to respond quickly, and without the debt and pension burdens of the Big Three automakers (Levi, 2013). They were able to redesign the old Fremont NUMMI factory with state-of-the-art assembly lines. Customers look favorably on Tesla for design and innovation, and applaud its mission to reduce harm to the environment done by gasoline engines and emissions.
Tesla Final Project For the strategy project I decide to write on Tesla. The industry in which Tesla competes is the auto industry as well as alternative energy industry. It is mostly known for the work that it does in the Automobile industry. The industry has been mainly dominated by the “Big Three” more specifically Ford, General Motors, and Dodge. I chose to do my strategy project on Tesla because it has revolutionized the automotive industry from its use of a battery to power a car to production of a giga auto manufacturing plant with the lowest carbon foot print. Tesla is interesting to me because I have been waiting on them to release a car that is affordable and for the masses.