Phase 2 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Phase 2 Case Study Solution

INTRODUCTION

Falling costs of advantageous technologies have altered companies and society, and the digital transformation of industries has created chances for value creation that are unmatched Additionally, digital transformation involves finding and developing new value propositions rather than simply using new technologies to improve and reorganize company operations processes. Through the year 2025, it is predicted that the automobile industry would contribute an additional $3.1 trillion in societal benefits because to digital transformation.

Tesla appears to be one of the automakers whose traditional business procedures have revolutionized the whole industrial sector and its company strategy. Furthermore, Tesla is the only automaker that offers automatic over-the-air software upgrades, allowing the vehicle to improve its safety, performance, and entertainment remotely. Traits that distinguish it and make it valuable. Digital transformation, according to Wester man, is the use of technology to significantly enhance an enterprise's performance or reach. Digital transformation should incorporate components that dramatically enhance and recreate the customer experience, digitally alter operational processes, and create new business models. Digital marketing, a subset of digital transformation, is probably driving the revolution in digital marketing.

While less-mature firms concentrate on using certain digital technologies to address specific business problems, more-mature organizations, according to the 2015 Digital Business Global Executive Study, concentrate on integrating digital technologies. Digital achievement is not solely about technology, though, and there are common forces from customers and workers that propel digital transformation and further reshape the business to take advantage of the new opportunities that emerging technologies offer. However, the influence of digital transformation on a company as a whole can be seen; for marketers, this means that the model at the core of their marketing strategy is altering.In other words, the potential of digital transformation for marketing should be to recognize the inflection points in a customer's wants and how they have changed, which should then result in a different set of marketing solutions.

As a result, for marketers, digital transformation is transforming the nature and discipline of marketing, and marketing, generally speaking, has adapted to digital developments better and faster than other parts of most firms. Traditional business measurements are out of date, according to Tesla, which is evident in a company that doesn't rely on incremental innovation and is instead more likely to disrupt the game by inventing a new category.However, organizations have a propensity to believe that marketing will be largely responsible for guiding and driving digital transformation since it provides the critical insight into consumer needs, desires, and habits.However, none of the interactive marketing strategies will be successful if we don't have a clear grasp on how to record and examine consumer actions across numerous digital platforms.

TESLA DRIVE TO DIGITALIZATION TRANSFORMATION

The usage of digital technology has helped many organizations perform better. For instance, the automotive sector has seen a significant transformation at the dawn of the twenty-first century as a result of (a) increased CO2 laws and (b) the creation of new technology. The whole automotive digital transformation will have an influence on the value chain, encompassing design, manufacturing, distribution, retail, and eventual business model restructuring. Additionally, businesses like GM, Ford, Tesla, Volkswagen, and Toyota will put more of an emphasis on linked cars, autonomous driving, mobility, semiconductor makers, mobility groups, and technological competitiveness. For cybersecurity, telematics, cloud computing, connectivity, and 3D printing solutions, automakers and suppliers will pursue partnerships with tech businesses and experts.

Furthermore, the automotive income pool will significantly increase and diversify, potentially adding $1.5 trillion in revenue by 2030 to the $5.2 trillion generated by traditional car sales and aftermarket products and services. Consumer acceptance, battery cost reductions, infrastructural development, and stricter environmental rules will all have a significant impact on how quickly electric cars are adopted and integrated into the market. Because Tesla conducts a substantial percentage of its activities online, it is necessary must investigate the aforementioned market groups in order to comprehend how customer behavior influences pre-purchase decisions.

For example, describes The consumer purchasing process is defined as a learning, information processing, and decision-making activity comprised of five critical steps: (a) identification of the issue, (b) information search, (c) alternative evolution, (d) purchasing decision, and (e) post-purchase behavior. For example, recognizing a need is the first stage in every buying decision.

Further, a consumer's interest in the online store should be piqued by the website, and the information provided should promote a long-term engagement. connectionbetween the two parties.However, as many organizations employ both online and offline communication channels, additional stimulation for need awareness may come from other online or offline sources. Information search happens once an issue has been discovered and the process of gathering information has been assisted by the usage of the Internet. To put it another way, in order to provide information in a simple and user-friendly manner, it is imperative to understand customers' online search activities.

Moreover, a lot of people now use the Internet to research products, evaluate alternatives, and weigh pros and disadvantages before committing to a purchase. As a result, the content of a B2C website will determine the success of the decision-making process. Furthermore, the post-purchase process is connected to post-adoption behavior, which involves openly or implicitly analyzing the outcomes of their adoption purchase. This activity can involve repurchasing, recurring usage, or updated replacements. Online functionality, stimuli, emotions, information, cues, products, and services combine to create an online web experience that goes beyond the conventional 4Ps of marketing.

Tesla utilizes an aggressive marketing method, a little marketing budget, and a non-aggressive sales approach to sell its products. In 2015, Tesla spent $6 on advertising for every vehicle sold, In comparison, Jaguar costs $3,325; Lexus costs $1,168; Porsche costs $267; and Toyota costs $248. Media spending in the United States determines this. Furthermore, keeping total marketing expenditures low is an important part of Tesla's sales strategy. This is accomplished through differentiation, since the company's digital marketing approach focuses exclusively on online auto sales that do not necessitate purchasers visiting a showroom.

Additionally, Tesla does not operate or own franchise auto dealerships, but instead owns 17 locations across the scenario in which potential customers may look at a car, go home, and put an internet order In other words, Tesla connects with its consumers in three ways: Online sales (a), Tesla-owned showrooms (b), and test drives (c).There is a definite difference between the performances regarding different digital marketing platforms, according to a marketing survey that was conducted among U.S. organizations. For instance, the percentage of businesses utilizing social media increased from 65% in 2009 to 72% in 2016, and the percentage of businesses using microblogging rose from 44% in 2009 to 55% in 2016.

Contrary to what was previously claimed, blogging decreased from 51% in 2009 to 44% in 2016, podcasting and forums decreased from roughly 24% in 2009 to 14% in 2016, while video and photo sharing experienced a fall from 52% in 2009 to 49% in 2016.Building digital marketing skills around the customer, exploiting customer information, delivering strong customer values, and fostering a pleasant customer relationship are crucial for firms. There have been several thus far. Tesla looks to be based on a combination of (a) consumer-facing digital platforms, (b) successful usage of multiple social media platforms, and (c) a commitment to providing great customer service. Furthermore, as a dynamic marketing capacity, Tesla constantly develops, disseminates, and absorbs market knowledge.

As a result, companies can identify new opportunities for activities such as scanning, generating, learning, and explaining. Tesla seems to be one of those businesses that is accelerating its transition to a high-velocity market. The lithium-ion battery manufacturing facility, for instance, is a key component of the effort by Tesla to decrease the price point in order to satisfy increased demand. It produces more lithium-ion batteries annually than were produced globally in the entire year of 2013.....................

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