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Introduction
Established in 2003 by Elon Musk, Martin Eberhard, Marc Tarpenning, JB Straubel, and Ian Wright, Tesla Motors, Inc. is a U.S.-based company that specializes in the design, manufacture, and sale of electric cars and electric vehicle powertrain components. Listed on NASDAQ as TSLA, Tesla's headquarters are located in Palo Alto, California with operations spanning across countries like the United States, Canada, Japan, Australia, and New Zealand. The company first gained recognition for producing the Tesla Roadster and later the Model S.
In addition to its own vehicles, Tesla also supplies electric powertrain components to other automakers such as Daimler and Toyota. CEO Elon Musk has a vision for Tesla to be an autonomous car manufacturer dedicated to offering affordable electric vehicles to consumers.
Tesla's business model strategy includes direct sales to customers by manufacturing their own cars, distributing them independently, and selling through their dealerships and website.
• Franchise Distribution Channel
Franchising allows Tesla to reach a wide range of countries with limited resources, making it a favorable option due to the opportunity to penetrate various markets.
Action Strategies
Tesla's unique approach to business targets wealthy consumers who prioritize environmental sustainability.
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Despite the inherent risks, this strategy has proven to be highly profitable for the company.
•Green Campaign
Tesla is actively encouraging the adoption of environmentally friendly practices to increase awareness about the importance of a green environment.
• Tesla Motor provides support tools for Tesla cars, including the Supercharge Network and Support Tools. The network comprises 65 stations in the US and 14 in Europe.
The Model S is tailored for efficient battery swapping to simplify assembly. Tesla aims to have a battery swapping station at every location with a quick 90-second swap time. The Supercharger system offers free, fast recharging to attract more customers and increase Tesla's market share.
•Unique pricing tactic
Tesla is implementing a distinctive pricing strategy in China by maintaining the same prices as in the U.S., without additional markups for import and sales taxes, as well as shipping costs. This sets them apart from other car companies that usually increase their prices. Consequently, Tesla offers great value for its customers. For example, Tesla vehicles are priced at $121,000 in China, which is lower than many rival gasoline-powered cars, potentially making China a key market for Tesla.
One of the key factors in operating Tesla Motor is:
•Innovation
Tesla should constantly introduce new types of cars with advanced technology that surpass other brands. This innovation will attract customers to choose Tesla. We believe Tesla does not have any direct competitors currently. Tesla provides a smart solution for high-end users seeking electric and eco-friendly cars, a well-timed positioning strategy.
•Service area
Tesla must widen their service area, including stores, service stations, and supercharge network stations. They strategically place their store and gallery locations in busy retail venues with high foot traffic and visibility, such as malls and shopping streets where customers are in a receptive buying mood. Expanding these three service areas will allow Tesla to increase car sales in more locations and countries.
• Price
Tesla has introduced a new car model that combines affordability with luxury, placing it in the same league as BMW, Mercedes Benz, Audi, and other high-end brands. With a more accessible price range, Tesla could potentially broaden its customer demographic.
Even though Tesla did not invent the electric car, the technology has been around since 1959. The company had to shut down earlier due to a variety of reasons, with timing playing a significant role. Factors such as low oil prices, availability of oil supply, concerns about global warming, and increasing public awareness of eco-friendly or green environments all played a part.
Tesla's emphasis is on its sales and marketing efforts as part of its differentiation strategy.
Tesla's business strategy involves targeting high-end customers to create a luxurious brand image, focusing on electric cars to differentiate itself from competitors. Once a revenue base is established, Tesla plans to expand into lower price ranges while still emphasizing luxury and quality in their variety of electric car styles.
Tesla's upcoming marketing strategy includes launching a green campaign and supporting environmental events to promote eco-friendly practices. The company aims to enhance the quality of life on Earth by producing electric cars and increasing green spaces, planting trees, creating parks, and combating global warming. Tesla also plans to build an environmentally-friendly office using eco-friendly materials and solar energy systems.
Customer Service
As Tesla sales increase, we are enhancing our customer service. We are creating a dedicated supercharging network for Tesla vehicles worldwide. This network will make it easier for customers to access charging stations, reducing concerns about driving long distances.
We offer additional tools to enhance our product, such as battery swapping and a super charging system. Additionally, we are expanding our global presence by opening more flagship stores around the world to increase market share. Furthermore, we are also establishing service stations to assist customers with servicing our product.
By expanding our network of supercharge stations, support tools, service stations, and stores, we will ensure the continued success of Tesla Motor Inc. We believe that electric cars will continue to grow in popularity in the coming years, becoming a major industry with great potential. By significantly increasing the number of supercharge stations globally, Tesla aims to maintain a competitive edge and dominate the market. While competitors are just beginning to establish their networks, Tesla is already well-established in the electric car industry.
Tesla Motors: Innovating the Future of Electric Cars. (2016, Mar 12). Retrieved from https://studymoose.com/tesla-strategic-management-essay
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