Tesla Motors, Case Study Example

Executive Summary

Manufacturing motors and automobiles in the modern world is quite a challenging task especially that the competition is too tight. Relatively, such condition of development insists on companies engaged in the industry to be more creative and somewhat be willing enough to go beyond the limits and open up their minds into something that might boost their capacity to make a good name in the industry and embrace the option of developing a better reputation for the organization even in the face of tight competition (Ohnsman, 2010). In this discussion, a determination of how TESLA Motors try to establish a name in the international market through an exceptionally different approach to marketing and a distinct consideration on the new aspect of motor-production that the new-world market is ready to embrace.

This presentation shall aim to develop the concept of determining what particular elements of operation in the company works towards improving the way the organization grows accordingly. It shall also intend to focus on how the business engages in international competition amidst its unique approach to manufacturing and marketing. In relation to this matter, this presentation shall also provide particular recommendations that are deemed to give the organization a better sense of grip of the competition they are engaging in within the international market.

Introduction

Aiming to have a new approach to motor production and manufacturing industry, TESLA Motors open up with a distinct approach to marketing and distribution that is built up on the desire to respond to the needs of the current market to be more dependent on the course towards improving a sense of realization on the environmental role of the business especially in consideration with the desire of the new society to protect whatever is left of the environment to be preserved. To respond to such social and environmental requirement, TESLA Motors decided to open up a business that would cater to the need of the society for new-age motor designs that would cater to the needs of the modern community, especially related to the environmental aspect of the company’s corporate responsibility.

Practically, TESLA Motors knew that entering the market at an early stage would not be as productive as hoped for. In 2006, when the company first started out, there were no reports of definite profit from the operations of the business yet. Such condition of business does create a distinct indication of what is aimed out as a practical course of development that cannot be fully arranged and realized because of the fact that the market being served is not yet ready or open to such massive changes at the time.

However, in 2013, the company reports its first successful profit record due to the new and massive marketing approach that the company engaged with during the said year. Following the trend that inhibits the concept of modern motor trading, especially related to creating new-age motor designs, it could be realized that the company opens its doors towards extensive development that could make it the center for market and industrial scrutiny. Nevertheless, the bold and aggressive move of the organization towards determining the course of development that the business aims to engage in gave it a better sense of an established status that could improve the way it is recognized by the market accordingly.

Corporate Strategy

Research and innovation are two among the most competent references that gave way to the development of TESLA’s reputation in the international market. It could be understood somehow that through the years of market existence, TESLAs focus on creating new and innovative designs of automobiles became the basis of the company’s business goals. At the starting point of the company’s growth, it could be realized that embracing such concept of development may not be easy enough especially that it engages in modern experimentation on how automobiles are to be modernized hence responding to what the environment and the society requires all at the same time.

To note, while TESLA seemed to have been struggling from the time of its birth, 2013 served a great year for the business. Offering the TESLA Roadster to the market was the key to the concept of development that the organization embraces at present. Following the said launch was the Model S, which was a luxury car that was run through electricity. The two flagships of the organization were first of their kind. It could be understood that the risk the organization took into account played well especially for the sake of developing a more determinably improved essence of considering the needs and demands of the market while improving the concept of responding to environmental development and preservation options (Klippenstein, 2010).

Industry Analysis

The automobile industry is an ever-growing business sector that continues to depend on the ideals of innovation in order to push for the relative stance of the industry towards extensive management of current resources dedicated to mandate the assumptive course of growth that the industry shall embrace alongside its desire to thrive in relation to the demands of the market and the demands of the environment. As the world faces massive environmental problems, the demand for more environmentally-friendly products arises (Walker, 2014). Considerably, such demand should be responded to by organizations that cater to the needs of the public especially in relation to public safety and transportation.

Compromising quality in exchange of creating an environmentally-friendly product that would suit the environment’s situation is out of the question (Klippenstein, 2010). It is of course understood that when it comes to improving the way innovation responds to environmental issues, the demand and expectations of the market should be met as well [and never set aside] by companies that are aiming to serve the needs of the public. Practically, this is where the competition in modern motor industries comes in. What constitutes good competition in the industry is the willingness of the organizations become more involved in creating innovative designs that are intended to improve the living and transportation options of the society while mandating a course of development that caters to other feature-demands of the public.

TESLA’s current course of operation does respond to this particular requirement especially that it engages in good aspects of creating a more determinable course of improvement specifically related to automobile production. The modern society at present is more than ready to accept new designs of technology that would cater to their expectations and their desire to be one with the aim of preserving the environment accordingly.

Company SWOT Analysis

Strength

• A pioneering status in providing high-quality, electric-powered motors [vehicles] that would suit the demands of the target market
• Risk-taking attitude of the administrators that is based on concentrated research which embodies the concept of development that the business hopes to embrace
• Research and innovation are used to determine the course of development that the business intends to take into full account.

Weaknesses

Risk taking could be both a good and bad for the business. TESLA, while it is able to manage the said concept of operation accordingly, it is still considered necessary to protect the business from possible operational commotions that too much risk taking might cost the organization.

Opportunities

• Take the lead in embracing innovative motor-production technology
• Improve the concept of motor production in the international market
• Create new trends in manufacturing automobiles for the international market

Threats

The emergence of competitors and new entrants in the industry is always a threat needs to be looked after seriously by organizations like TESLA. It could be realized that these threats could pose a distinct sense of development in the industry but a great challenge to individual players in the said field.

Strengths and Weaknesses: 

As noted from the general analysis, the company’s strength in risk taking could also become a weakness especially that it aims to become more extensive in influencing the market with the products it hopes to serve them with. Considerably, with the application of proper management, TESLA would be able to take on a new wave of innovative development that would improve its stance in the industry while not jeopardizing its relationship of competition with other companies amidst the competition that exists in the market.

Strength and Threats:

The emergence of new entrants in the industry could always be counteracted by TESLA through effective mandate of innovation that always goes ahead of others; which could be embraced through the application of extensive resources and intellectual asset management.

Strengths and Opportunities:

The company engages in extensive innovative operations; this serves as a strong sense of control on how they use their research to create new options of development. Nonetheless, it should be understood that such an opportunity of innovation could be trampled over by the application of wrong management operations. Good management and development of sustainable business operations could help support the desire of the company to continuously be open for new opportunities that would serve their goals at best.

Recommendations

Considering the current status of TESLA in the market, it is agreeable to take note of the fact that the business is in its rapid growth phase. Understandably though, it could not be denied that this aspect of developmental innovation handled by the organization might not be managed accordingly by the business especially if it will continue sticking to its old ways of operation. Learning to expand the ways by which the business engages in good business innovation provides the administrators a better sense of understanding what is meant by extensive development which is especially dedicated to mandating a better source of competence for an organization like TESLA.

It should be remembered by the company’s administrators that when it comes to innovating and experimentation, they might currently hold the relative essence of being a pioneer in the field. Nevertheless, not being able to hold such a reputation firmly might cause the company to lose sight of the competitive stance that they hold at present. To avoid such an instance, it is important to take note of the fact that innovation and research should continue to be the dependable stronghold of the business as it enters in a much effective sense of creating a distinct mark in the industry as the first one to provide electric powered motor models. As it expands its market in the international field of trade, it is essential that the organization embraces a good sense of controlling the situation accordingly.

Works Cited

Klippenstein, Matthew (2014-02-10). “Plug-in electric car sales in Canada, Jan 2014“. Green Car Reports.

Walker, Hunter (March 11, 2014). “New Jersey bans direct auto sales“. Business Insider. Business Insider.com.

Ohnsman, Alan (2010-12-30). “Tesla Says Electric Car Battery Plan Means Profit at Low Volume”. Bloomberg.