Business Strategy
Business strategy is determined by a company’s general arrangement on how it wishes to achieve its drawn-out goals and gain the upper hand in the designated market. It embraces the reactions that decide hierarchical situations inside a field; the use of assets; and strategies looking for learning experiences.
The MBA FPX 5006 Assessment 2 Business Strategy plan of Tesla, Inc. depends on three primary thoughts: development and novel thoughts, supportability in the climate, and the course of progress. Thus, Tesla has arisen as a trailblazer and a market head of sorts as it was perhaps the earliest company to wander into the creation of electric vehicles using clean energy and giving more choices to buyers as far as energy sources and transportation (Lang et al., 2021).
Because of the way that the company is consistently in the development mode, in an upward direction coordinated, and has a direct-to-customer deal model, the company has had the option to revamp the standards in its industry and catch a major piece of the new electric vehicle market.
Generic Business Strategies
There is one additional huge rule that characterizes Tesla’s promoting strategy and it is separation. While the company is extraordinary in one manner, it has the best electric vehicle development and great performance with an exceptionally delicate spotlight on the climate. Conventional automobiles with gas-powered motors are the ones as opposed to Tesla automobiles which have modern battery frameworks, semi-autonomous halfway control, and over-the-air changes. Tesla of the vehicle business has likewise evolved into a company picture of trend-setting innovation, natural cognizance, and claiming luxuries, as referenced by Babu and Madhuri (2023).
Tesla’s Differentiation Strategy: Driving Innovation and Cost Efficiency
This strategy has assisted Tesla with laying out higher-than-industry-normal costs for its vehicles since buyers will pay something else for the company’s separate items. To the approach because of separation, Tesla itself is unique, be that as it may, the company effectively influences the base as they go after economies of scale and vertical coordination. Tesla has benefited because it put resources into gigafactories and battery creation offices and through working on its cycles for making its vehicles it has had the option to diminish costs by a huge degree since a few key parts are produced inside (Cooke, 2020).
As Zhang and Wang express, Tesla has changed the whole interest chain plan with an immediate selling strategy where conventional stores are not needed (2023). This brings down the flow cost and hence Tesla can offer sensible costs when contrasted with its competitors. Tesla is additionally entering the vehicle business and accomplishing the upper hand to remove rivals and outcompete them in the market through the half-and-half market strategies of development and cost administration.
Business Strategy Related to Marketplace Approach
One of the vitally essential market-focusing approaches that Tesla has embraced in the automotive business is an immediate-to-purchaser market strategy by which the company has embraced imagination combined with mechanical headway to move the customary approaches to execute business processes. By this method of conveyance, the items are sold straightforwardly to the buyer through the web and outlets claimed by the company for sell of vehicles and administrations without including brokers.
Tesla’s business strategy isn’t like most automobile showroom strategies; rather than a basic confidential store, it goes for the gold variety of administrations. Instead of utilizing the subsidiary organization to sell its items straightforwardly or offer types of assistance, the company’s own locales are utilized for deals and administrations.
Tesla’s Charger Network: A Disruptive Innovation Driving EV Adoption
An incredible piece of Tesla’s strategy is a charger network because the shortfall of a wide charging network is seen as quite possibly the main factor that keeps many individuals from buying electric vehicles. Clayton Christensen’s examination of troublesome development is that associations foster new items that are at first not exceptionally compelling as per conventional execution indicators, yet they have qualities that are alluring to a particular gathering of buyers (Terry, 2020). At long last, as these novel thoughts improve, they dislodge the market victors which are as of now immovably set up.
The novel approach lines up with Tesla’s strategy. The company began managing vehicles with power, which in the first place didn’t offer the degree of reach or speed as the fuel and oil vehicles; be that as it may, they were viewed as harmless to the ecosystem by individuals who embraced them for green correspondence innovation.
In any case, Tesla vehicles are better than customary vehicles regarding speed increase, energy thickness, and improved software mix (Peng, 2024) given the company’s persistent redesigns as well as progressions in battery frameworks. MCT characterizes a market that isn’t in that frame of mind by offering important suggestions that make competitors superfluous given W. Chan Kim and Renée Mauborgne’s Blue Sea Strategy model. Direct selling, the association’s upward consolidation, and a reasonable center are a portion of different ways that the company is different from standard vehicles.
MBA FPX 5006 Assessment 2 Business Strategy
Tesla has been great at going for the gold situation in this aggressive vehicle business through its viable Business Model Advancement. Tesla enjoys a cutthroat benefit as far as the cash it puts resources into research and improvement as well as in particular advancements and corridor stamps or licenses.
For example, has progressed its battery advancement by developing high-energy thickness lithium-particle cells and battery frameworks. These have empowered longer reach and quicker charging times for vehicles consequently separating them from competitors (Wen; Tao; Yang and Zhang, 2020). Comparative with the unique powers system, the(model has noticed that Tesla has proceeded to develop and acclimate to economic situations to beat competitors.
Extravagance electric vehicle creator Tesla has related itself to green innovation and climate brands. Given the brand reverberation model, Tesla has accomplished brand Development by making its customers extremely faithful and dynamic in the brand. Tesla has laid out a multitude of shoppers who reverberate with its reason for activity and ethos additional time because of its immediate selling model and legitimate customer relations (Tsai, 2021).
Tesla being a perceived brand, can bear to sell its vehicles cost all the more lavishly as it focuses on the extravagance half breeds market between individuals who are eco-cognizant and have a reasonable plan with innovation.
Business Model of Company
The company’s key items are electric vehicles (Traveler Vehicles and Weighty Trucks) and strategies for energy storage. Tesla Motors has a few models in particular; the Model S vehicle, the Model X SUV vehicle, the Model 3 car vehicle, and the Model Y hybrid vehicle (Lang et al., 2021). Tesla’s Powerwall and Megapack are among the energy storage items for home and business use. That is the essential item, yet the company likewise offers sun-powered cells and sun-based roof tiles.
At present, the essential wellspring of creating income at Tesla is through deals with automobiles and items with energy storage capacities. The company doesn’t re-appropriate its items to tertiary shops since it retails its vehicles straightforwardly to shoppers as well as on the web and through its own display areas and outlets, as well as administration stations (Axsen et al., 2022). The company likewise acquires incomes by exchanging government credits, like Zero Outflows Vehicle (ZEV) focuses, with auto producers that neglect to adjust to contamination norms.
Tesla’s Innovative and Eco-Friendly Approach to High-Performance Electric Vehicles
Tesla, first of all, furnishes purchasers with new, elite execution electric vehicles that have interesting advances, and a strategy for making vehicles that are new and harmless to the ecosystem. New vehicles from the company have great speed, a broadened battery range, better inventive highlights for semi-autonomous driving, and the potential chance to refresh the vehicle’s software through the Web (Rasib et al., 2021).
Tesla’s deals model which includes its first-party vendors and solid customer support for its vehicles additionally combined with progressively extending its Supercharger station network for charging accommodation likewise makes for a raised claiming experience. The strategy by which Tesla needs to bring in cash is cost initiative where economies of scale and vertical mix lead to a low price tag and consequently higher edges. Putting a lot of cash into its Gigafactories has provided the company with the benefit of facilitating, and accelerating the development of batteries, vehicles, and energy storage merchandise.
In addition, one can’t find common showrooms for Tesla’s situation since it offers direct acquisition of vehicles to the buyers and consequently, it kills the requirement for their transportation (Liu, 2022). The automotive monster expects to extend its profit edges and plans to be profitable over the long haul with increasing creation rates while lessening battery costs.
Relationship Between Model and Strategy
The particular business model of Tesla can be inextricably related to the overall business strategy of Tesla. This is an example of how Issuu needs to have its strategies aligned for it to sustain its competitiveness.
This is evidenced by its main products which include electric automobiles and renewable energy systems, which are a threat to ordinary internal combustion engine vehicles and fossil-based sources of energy respectively, therefore signaling that the company is ideas-based, sustainable, and is into technologies that can revolutionise markets.
Tesla has done away with the usual middlemen by selling its cars directly to the consumer instead of dealing with third-party stores cutting on its overhead costs and being able to have control over buyers’ experience which is in line with its positioning of an exclusive, high-end product (Myles, 20293).
Therefore, addressing cost leadership and efficiency, Tesla’s plans to become a vertically integrated company and recent investments into manufacturing facilities such as Gigafactories are beneficial for the company.
This means that the company can continue to realize economies of scale as production rates increase through consequent enhanced revenue generation (Terry, 2020). Tesla’s business plan and strategic objectives linked to innovation, sustainability, and change objectives are aligned at the company. This has enabled the company to keep abreast with the requirements of the car and energy industry markets that are dynamic.
Corporate Strategy of the Company
Tesla’s strategic management map involves the automotive segment, product segments – electric and energy storage, and energy segments, such as green energy. Over the years, it has expanded from manufacturing only luxurious electric cars and produces much more than that today.
Thus, to satisfy the needs of millions of users, Tesla has been offering suitable models like SUVs, wagons, and many more affordable vehicles today (Sharmelly & Ray, 2021). Tesla has also expanded into the energy section by offering Powerwall and Megapack items, solar cells, and solar roof tiles. This is in the company’s medium-term strategy where it intends to diversify to capitalize on the rising market demand for clean sources of power.
The auto, as well as energy company, has expanded to many of the world’s largest markets as part of a strategy for growth worldwide. Originally, the company was focused principally on the US, but now it serves Europe, China, and some other countries.
This is due to its flexibility to adapt to regional requirements and policies through alteration in its offerings and approaches (Bridge & Faigen, 2022). Tesla foreign growth has indeed been aided by such splendid partnerships still as the one with Panasonic in Gigafactory Nevada and the ones made in local factories and warehouses.
In the production process of its products, Tesla has been known to employ the ‘vertical integration model,’ whereby the company directly handles significant processes involved in their production. The business has invested heavily in research and styling so that it can design and develop its means of operation like battery cells, electric motors, and self-driving systems that can make cars drive on their own.
Tesla also assembles parts such as battery packs and electric drive trains at the Gigafactories. This ensures that whenever the company requires these parts, they are easily available and not entirely dependent on outside demands (Cooke, 2020). Similarly, standard stores do not apply to Tesla since it has established its own outlets of direct selling stations and service centers where it does not need to operate along with standardized stores.
With the above approach of vertical integration, Tesla can obtain more value from its supply chain, operate the business effectively, and prevent supply chain mediocrity in its products and services.
Corporate Structure, Management Systems, and Strategic Approaches
A flat management structure also shows that Tesla’s company organization is somewhat restrained so it is simple to make decisions. This systematic adaptation is well aligned with the company’s creative and flexible approach to doing business by allowing it to respond appropriately to the dynamics of the market.
But it has also led to emerging concerns like a considerable amount of power being in the hands of a few people and potential employee burnout (Bedford et al., 2022). Flexibility, productivity, and quality are the key indicators that define Tesla’s essential management procedures, focusing on consistent development and lean manufacturing.
Looking at the business models employed at Tesla, the firm has actively pursued va ertical integration strategy as one of the key pillars of its strategy. The business has spent a lot of money acquiring influence over various links along the value chain, including research, nurturing, manufacturing, and marketing.
This strategy of vertical integration has supported Tesla in being able to maintain high quality within the organization and gain more money from within while having to rely on other sources less. Moreover, the management of Tesla has given primary concern to the aspect of internationalization in its strategic plan (Rasib et al., 2021). The business has evolved being already the present vast majority of the largest countries in the world including the United States, Europe, China, and many others.
Leveraging smart relationships and partnerships, MBA FPX 5006 Assessment 1 Strategic Process and Analysis has engaged other suppliers, manufacturers, and government agencies that have enabled it to expand globally as observed by Ding and Lee (2023). For instance, Panasonic has held an extremely significant role in ensuring Tesla has a constant source of supply of battery cells for electric cars through the Gigafactory Nevada (Qin, 2022).
Conclusion
The feasibility of the business taps into the ability of Tesla to properly integrate the business strategy with the business model, as well as integrate the company strategy into one seamless and adaptable business plan. The strategic concepts of innovation, sustainability, and change apply to Amtrak both in terms of core products and revenue and in income-generating strategies oriented toward development, global expansion, and vertical integration.
Tesla’s idea for differentiation is delivering outstanding electric vehicles and energy products. It can do this through its direct-to-consumer approach to its business and investments made in technologies that belong to the company itself. On the same note, the integration of the company, with attempts to build the organization as a lowest-cost provider through scale and scope advantages, enhances competitiveness.
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