A. STRATEGY RECOMMENDATIONS AND EVALUATION SUMMARY
B. BUSINESS STRATEGY REPORT
STRATEGY RECOMMENDATIONS AND EVALUATION SUMMARY
1. Focus all energies towards Model 3 production:
2. Revisit Business Model to generate higher revenue and profits:
3. Need for a comprehensive Marketing strategy:
- ANSOFF’S MATRIX FOR DEVISING A MARKETING STRATEGY FOR TESLA MOTORS.
4. Focused effort on battery R&D to reduce cost and increase profit:
5. Capitalize on Powerwall:
BUSINESS STRATEGY REPORT
1. THE TESLA STORY
2. DEFINING TESLA’S STRATEGY: The High end disruptive innovation model
3. ANALYSIS AND EVALUATION OF TESLA’S STRATEGY
- Blue Ocean in true sense!
- The revolutionary Open Patent Move.
- Thousands of Super charging stations across the world.
- Collaborations for better innovation and faster solutions
- Creating Competition
- Architectural innovation – difficult to imitate
4. ANALYSIS OF TESLA’S BUSINESS AND REVENUE MODEL IN ACCORDANCE WITH THEIR INNOVATION STRATEGY
5. THE CSR SCORE
6. TESLA’S PERFORMANCE FRONTIER ANALYSIS
- Identifying material ESG issues:
- ESG and Financial Performance:
- Innovation in Product and Services:
- Stakeholder Communication:
7. STRATEGIC POSITION ANALYSIS
8. GENERAL EXTERNAL ECOSYSTEM ANALYSIS AND STRATEGIC IMPLICATIONS FOR TESLA MOTORS, INC.
- STRATEGIC IMPLICATIONS:
9. STAKEHOLDER ANALYSIS
10. COMPETITIVE FORCE ANALYSIS FOR TESLA MOTORS
- Automobile Industry Analysis
- Disruption in the industry:
- Emergence of electrical vehicle industry:
- Tesla Motors: The innovator and disruptor!
- THREAT OF NEW ENTRANTS: LOW TO MEDIUM LEVEL THREAT
- THREAT OF SUBSTITUTE PRODUCTS OR SERVICES: LOW LEVEL THREAT
- BUYER POWER: LOW LEVEL THREAT IN ELECTRIC VEHICLE INDUSTRY AND HIGH LEVEL THREAT IN MAINSTREAM AUTOMOBILE INDUSTRY
- SUPPLIER POWER: LOW LEVEL THREAT
- STRATEGIC IMPLICATIONS OF THE COMPETITIVE FORCE ANALYSIS:
11. INTERNAL ENVIRONMENT ANALYSIS
12. SCOT ANALYSIS
13. IMPLEMENTATION MANAGEMENT IS CRITICAL
14. CONCLUDING THOUGHTS
The strategy of Tesla, as shared by Elon Musk, the CEO and founder of Tesla Motors is “to enter at the high end of the market, where customers are prepared to pay a premium, and then drive down market as fast as possible to higher unit volume and lower price with each successive model” (2006).
Firms clearly defined strategy, aligned with their mission and vision has offered a competitive advantage and has helped Tesla emerge as a potential leader in the Electric Vehicle Industry (Collis & Ruckstad, 2008).
Tesla’s commitment towards design, engineering, software and technology innovation is evident in its past offerings, especially in Model S, the vehicle that won the Motor Trend car of the year award.
Equally strong is company’s commitment to service excellence through Super Charger networks and battery swap facility.
Tesla took their belief in open innovation to a new level by opening their patents to the industry and by forming strategic alliances with industry leaders like Panasonic, Daimler, Toyota and Solar Edge, to name a few.
Such collaborations served as a strong strategic move to foster innovation and growth (Lakhani et al, 2013).
Innovation and Sustainability are two crucial drivers that distinguish a good company from a great company. A company whose strategy is well grounded in both these aspects is Tesla Motors Inc.
Named after the pioneer of Alternating Current, Nikola Tesla, Tesla Motors is a Silicon Valley company with a mission “to accelerate world’s transition to sustainable transport” (teslamotors.com/about).
The company envisions to trigger an electric transport revolution by being a global leader in electric vehicle industry and by making electric vehicles a lucrative automobile industry both commercially and technologically.