STRATEGIC ALTERNATIVES Harvard Case Solution & Analysis

STRATEGIC ALTERNATIVES:

Following are the strategic Alternatives that Tesla Motors should consider in order to improve the situation:

ALTERNATIVE # 1:

Strategic Alliances:

The company has made few strategic alliances with the renowned and dominating multi-national companies which has limited the overall growth of the company as well as it has also limited the overall ability of the company to tap into the various potential markets.

The top management of the company should make various strategies in order to make effective strategic alliances with the global multinational automobile companies such as BMW, Lexus, Mercedes, Audi, General Motors, Ford, etc.

This would help the company in tapping into new and potential markets and would further lead to increase in expansion of the operations, which would subsequently increase the overall customer base of the company as well as this would also enhance the overall revenue and profitability of the company.

Cost Controlling Procedures:

The top management of the company should implement various cost effective procedures and strategies within the operations of the company. This would decrease the overall operational costs of the company as it would help the top management of the company in identifying and eliminating the unnecessary and unidentified costs occurring in the operations of the company.

Thus, it would reduce the overall costs of the company and would subsequently allow the company to earn heavy profits. This would also enhance the overall competitiveness of the company as well as it would allow the top management of the company to offer low prices of their products.

Diversification:

The top management of the company should consider diversifying its product lines efficiently and effectively. The company only sell electric vehicles, which limits the scope of growth and expansion of the company at a widespread scale. The top management of the company should move towards producing hydrogen energy based cars or cars that could run on flexed fuel.

This would enhance the overall scope for the growth of the company as well as it would also enhance the overall scope for expansion of the company’s operations at a wide spread scale.

Global Expansion:

The top management of the company should focus towards global expansion of the operations of the company as there are still a large numbers of untapped potential markets. The top management of the company should focus of expanding its operation to Spain, Tokyo, and many other potential markets all across the world.

This would increase the overall customer base of the company as well as it would allow the company to earn economies of scale. This would readily enhance the overall revenues and profitability of the company at a large scale.

Thus, the top management of the company should make effective strategies in order to exploit the available opportunities present in many of the potential markets all across the world.

Extensive Marketing:

The company does not focus on marketing its products and services efficiently and effectively. This has a significant negative impact on the operations of the company as well as it considerably limits the overall growth of the company as well as revenues and profitability of the company.

Therefore, the top management of the company should make an effective marketing department, which would make effective marketing strategies in order to create brand awareness of the product among the people of the company efficiently and effectively.

The marketing department of the company should do marketing of the products of the company in such a way that it emphasizes on the benefits the people could get by using the products of the company. In addition to this, the marketing department should also make their marketing customer oriented rather than product oriented.

This would create brand awareness among the people and they would be readily attracted towards the product of the company. This would subsequently enhance the overall customer base of the company, which would enhance the overall revenue and profitability of the company. In addition to this, extensive and effective marketing of the product of the company would also enhance the overall competitiveness of the company and would allow the company to secure a leading position in the entire market.

Economic Products:

Tesla offers luxurious vehicles at high prices which limits its target market to a certain extent. It only targets the upper class customer s which limits the sales of the company to a considerable extent. The top management of the company should also manufacture low priced products so that the top management of the company could target all class of customers.

This would enhance the overall target market and subsequently the overall customer base of the company. However, the top management of the company should not discontinue or put less focus on its core product line as putting less focus on the core product line of the company would affect negatively in the interest of the company................

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