Tesla Company, Research Paper Example

Technology has had a significant impact on the expansion of different businesses throughout the world. Using technology has not only brought people together, but it has made different companies much more efficient than they were. Globalization has also made it possible for most organizations to expand beyond their local market. Even though they have been presented with many opportunities, the risks that have been associated with globalization are also enormous, and sometimes, companies which have been successful in the local markets have ended up losing their share to new market entrants because of globalization. Regardless of the risks presented by the markets, most companies have increased their competitive scale through the use of technology. This document will, therefore, discuss how globalization has been impacted by technology. The paper shall be in the Tesla Company.

When the word Tesla is mention in any group of persons, many people will associate it with the innovative cars the company has made and the targets it is trying to achieve. However, looking at the company’s history, everything has not been a joy ride for CEO Elon Musk. Tesla is amongst the first companies to fully integrate the production of electric vehicles safe for public use. The CEO Elon Musk is known to being a visionary, and when he announced that the company would make an autonomous car which is electric, many people believed this was impossible. When the car was released, many companies also tried this out but with limited successes in production.

The success of the company in creating these innovative vehicles can be attributed to the extensive use of technology in the planning and innovation process of the project. The companies had spent millions of dollars in the research and development sector just to ensure that the whole project would be a success with no issues (Mangram, 1). Based on the company growth after the development of the vehicle, it can be noted that technology has allowed the company to rich limits which were theoretical a while ago. The technology used by the company allowed the researcher, designers, and scientists to test the limits of physics about vehicle development to come up with not only an electric vehicle but one with beneficial but sophisticated bits of technology.

Unlike most companies in the vehicle development industry, Tesla has opted to use technology in reaching out to their customers. In the essence of globalization, most firms have opted to set up operations in different regions just to increase their control and sales in the regions (Mangram, 1). Sometimes, this strategy has been successful, but in other cases, some companies had been forced to pull out of the markets because of the different regulations made by the host government. For Tesla, the company has taken a different turn in making sure its customers can get their vehicles. For anyone who wishes to own any Tesla model, they are advised to visit the company’s website where they can make their order on the vehicle they need and how it can be customized to the options listed on the company website. In the United States, there are no physical dealerships where the customer can have a view of their products; all they will have to do is wait for their vehicle to arrive after making their vehicle order. If there are issues with their shipment, the buyer can request a replacement or refund from the company.

The automotive industry is competitive and for Tesla to receive the same earning compared to a firm like Toyota and Ford, the management and use the industry organization model to help highlight some issues which can affect any industry and the success of the organizations within it. One area that Tesla can look at is the use of mergers (GECCIS, 2). As the world is focusing more on renewable energy and environmental concerns, many organizations have supported the use of electric vehicles as an alternative to combustion engine vehicles. This provides a cue for Tesla to increase the production of its electric vehicle models. However, the company faces one challenge, which can be solved through strategic mergers. The company can merge with other vehicle production companies, and through a contractual agreement, Tesla can use the facilities not only to produce the vehicles but to also further development of the electric vehicle models. While considering globalization, the company can choose production companies in the Far East where raw materials are much cheaper than labor. The company can ensure that the quality of vehicles is like vehicles produced in the United States. However, this method has its limitations. The production and supply process can easily be affected by recent issues on trade tariffs. This can affect the sale and production of vehicles in various markets.

Tesla can also analyze the competition and what the companies are doing to increase the profitability and functionality of the company. For instance, conducting extensive competitive analysis may show the company what the competition is missing, and from the findings, the company can use this to increase its competitive advantage. The analysis will also be able to show the firm the strengths of competitors relative to Tesla’s strengths. This will help the company adjust some of its functionalities accordingly to increase the competitiveness of the firm.

Regardless of the success which might have arisen from the company’s development of the best electric vehicle in the market, the company is facing several internal issues which might affect several operations and running projects. One of them is that the management, besides Elon Musk, believes that the current CEO is not taking the position of CEO seriously (Atkins, 4: Currie, 3). They believe he is spending much of his time involved in various side projects, forgetting what the company is doing with the development of the electric cars. Some majority of stakeholders have even proposed to have Elon Musk replaced with another individual who is more dedicated to the task more than him. Customers are also a contributing factor to companies’ projects. When the customers complain about issues with a vehicle model, this can drive the share prices down fast. However, if the company can listen to what the customers want and need in their vehicles, the company can create vehicles designed for the people by the people. This will directly lead to increased demand for the vehicles, as the company will follow what their customers want. Without considering what the stakeholders also want the possibility of the company failing is elevated, and as a result, most of the projects may have to be abandoned because this may force some investors to pull out of the projects by the company.

Sources

Mangram, Myles. “(PDF) The Globalization of Tesla Motors: A Strategic Marketing Plan Analysis.” ResearchGate, ResearchGate, July 2012, www.researchgate.net/publication/254322834_The_globalization_of_Tesla_Motors_A_strategic_marketing_plan_analysis.

“GECCIS (Globalization, Ethics, Culture, Change, Innovation, Strategy) ….” It, Coggle, 2013, coggle.it/diagram/WtYHAIlXs-DUm0Qg/t/geccis-globalization%2C-ethics%2C-culture-innovation%2C-strategy.

Currie, Antony. “Tesla Sends Wrong Message to Right Stakeholders.” Com, 23 June 2018, www.breakingviews.com/considered-view/tesla-sends-wrong-message-to-right-stakeholders/.

Atkins, B. (2019). Tesla’s Leadership Challenge. Forbes. [online] 25 Feb. Available at: https://www.forbes.com/sites/betsyatkins/2019/02/25/tesla-is-imploding-again/#75bfec4068e1 [Accessed 12 Apr. 2019].