Executive Summary
Tesla Motors is an American company known for its innovative approach to car construction. Founded in 2003, the company presented the Tesla Roadster, its first electric vehicle, five years later, in 2008 (David & David, 2017). The car with instant torque and great power also made zero emissions. Although the company became profitable only 10 years after it was founded, it is still considered the number 42 growth champion (Forbes, 2017). Unfortunately, the company is experiencing a significant decrease in revenue and assets.
Vision
The vision of Tesla Motors mirrors the essence of its outstanding electric vehicle production business. Thus, the vision statement of the company is “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles” (Rowland, 2017, para. 3). The vision statement accentuates the focus of Tesla Motors on renewable energy.
Mission
Tesla was founded with the idea that vehicles using electricity can be faster, more pleasant to drive, and generally better than cars using gasoline (“About Tesla,” 2017). The company believes that “the faster the world stops relying on fossil fuels and moves towards a zero-emission future, the better” (“About Tesla,” 2017, para. 1). The country states its mission as “to accelerate the world’s transition to sustainable energy (David & David, 2017, p. 518).
Objectives
One of the company’s objectives is to make Tesla vehicles more available. At present, the cost of its Model S varies between $70,000 and $100,000 that can run 265 miles without recharge (Bullis, 2013). The company is looking for ways to produce a more affordable car with a price within the limit of $35,000 and preservation of a similar range. This objective is likely to increase the competitive ability of Tesla.
Strategies
The company mainly implements intensive strategies. First of all, market penetration is applied by Tesla. Thus, the company is constantly expanding the network of dealerships and service centers. For example, in 2014, Tesla increased it by more than 40% (David & David, 2017). The strategy of market development is also typical of Tesla. The company is looking for new sales grounds and succeeds in this process.
Thus, at the end of 2014, Tesla opened Australia as a new distribution area together with four other locations. It allowed doubling the number of international sales and service locations (David & David, 2017). Finally, the company actively implements a product development strategy. Although new models do not appear frequently, the company pays due attention to the improvement and perfect service of the existing vehicles. Its innovative approaches and constant technologic improvement makes Tesla number two in the rank of innovative companies of the world, according to Forbes (2017).
Recommendations
One of the recommendations that have the potential for improvement of Tesla’s position is to pay more attention to its initiatives in the creation of a sustainable energy ecosystem. Tesla develops such projects as Powerwall, Powerpack, and Solar Roof that allow managing “renewable energy generation, storage, and consumption” that can bring profit to the company (“About Tesla,” 2017, para. 4). Moreover, the company should stick to its strategy of market development and enlarge its network. For example, Tesla can consider China as one of the beneficial markets for the company because it provides new markets for the company’s products since the country is interested in the idea of energetic sustainability.
References
About Tesla. (2017). Web.
Bullis, K. (2013). How Tesla is driving electric car innovation. Web.
David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts and cases (16th ed.). Boston, MA: Pearson. ISBN: 9780134167848.
Forbes. (2017). Tesla. Web.
Rowland, C. (2017). Tesla Motors, Inc.’s vision statement and mission statement (An analysis). Web.