Tesla Incorporation Case Studies
Introduction
Tesla motors are well-known brand in the world for its electric vehicles (Rothaermel, 2020). Tesla was established in the year 2004 by the Martin Eberhard, which was the chief executive officer of the tesla. The main goal of the Eberhard was to introduce the vehicle of a new type with high-quality features in the market of auto motors. The chief financial officer of the tesla was Marc deepening an entrepreneur of technology and engineer of United States. Funding was the main problem for the Eberhard. The CEO got the funding from multiple sources. The huge amount of funding was given by Elon Musk of about $30 million for the start-up of tesla. Elon Musk was the co-founder of PayPal and, after funding to the Tesla, he obliged as the chair of Tesla Incorporation. The CEO and CFO both resigned to Tesla Incorporation in 2008 and Elon Musk promote as Chief Executive Officer of the Tesla Incorporation. After the release of Roadster, in 2010 the offering of Tesla starts from $226 million.
Tesla’s Secret Strategy of 2006
This Strategy was designed by Elon Musk, the Cofounder of Tesla, in 2006. Elon states in his strategy that the Tesla overcome all the entry barriers of auto motors market by releasing a high performance auto vehicle which competes all the gasoline high quality vehicles of the market. After 3 years of start-up. Elon Musk implement his strategy and at the starting of 2008 Tesla motors introduce its first car in the market, which was known as Roadster, a complete definition of electric vehicle. On a single charge the car travel approximately 395 km distance. With a high speed, Roadster covers 200km distance in a single hour. Roadster was manufactured by avoiding all the negotiations related to production. The first introduce vehicle of Tesla beat the two existing and well-known automobile manufacturers that are Ferrari and Porsche. The electric car of Tesla compete head to head with gasoline vehicles of both these brands. The costing of electric car was high because that was the introductory phase of product and the technology used over this vehicle was also valuable and expensive. To enter the high end of the market was a secret strategy of the company. Tesla's Secret strategy also states that the company produces wide ranges of vehicles with affordable prices having family cars. After the roadster the Tesla introduce a family car having half the price compare to Roadster and the third model of Tesla has less price than the family car. So it means the Tesla follows the Secret strategy and not only overcomes the entry barriers to market but also makes a good brand recognition and positioning in the market with very short time.
Building the Resources and Capabilities
Elon Musk builds the resources and capabilities to make strong the organization's business model of electric vehicles and to achieve the competitive advantage in the industry of auto motors.
Elon Musk follows the following steps to make the organization more profitable and for building the organizational resources and capabilities.
Structure a Proficient Organization
For structure the organization is capable, Elon Musk must make the map of the organization that what are the important internal and external factors which structure the organization and make it profitable. The success of any strategy is possible when the employees of the organization are more persuasive towards the organizational goals and the culture and environment of the organization is also good, which motivates the workers of the Tesla to work innovatively.
Operating the Organization
For building the resources, Elon Musk must manage the relations between all the team members of the organization. The employees must be goal oriented by following the vision of Tesla. The recruitment team must recruit the new human capital by analyzing their competencies for the betterment of tesla.
Structure Essential Capabilities and Modest Competencies
This is the time-consuming process of developing the capabilities and strengths. The major three steps must be taken by Elon Musk to create more competencies.
- Develop the skill to do a bit as a learner seem as a team.
- Elon musk must change the organization which polish the employee's skills and motivate them to work more effectively.
- Elon Musk concludes the performance of Tesla that how much vision and mission the company is achieving and what are the future expectations of the organization are. By analysing the market needs, purchasing power of market and offer the vehicle, the company can get the Resources and capabilities.
The Competitive Advantage of the Company
Tesla in the tough competitor for all the auto motors companies in electric vehicles. Tesla earns a lot of revenue from its first introducing vehicle Roadster. The competitive advantage of Tesla originates from their advance research and technology. By understanding the environmental factors, the tesla gains the competitive advantage. Tesla also gives complete focus on cost leadership strategy. The competitive advantage of the tesla is that the vehicles of Tesla differ from other in battery limit, designs and product portfolio. The tesla has diversified vehicles from 2 seats vehicle to huge trucks. But the company has a strong advantage in the electric vehicles.
Value Chain Analysis
For understanding the tesla competitive advantage and the value of corporation, the value chain analysis is used to understand the company’s products and services value.
The value chain analysis of the tesla has five steps.
- Inbound logistics
- Tesla's Operations
- Outbound logistics
- Marketing and sales of Tesla
- Services of Tesla...
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