Case Study: A Brief Background Of Tesla

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Brief background of ‘Tesla’ Tesla is a futuristic electric autopilot car maker and provider of renewable energy solutions. Tesla’s cars are based on revolutionary high-power battery, and release zero emissions. Tesla advocates the need for the world to completely switch from fossil fuel based automobiles to renewable energy based automobiles. Tesla offers four variants of its electric cars Roadster, Model S, Model X and Model 3 with price ranging from $36000 to $250000. All Tesla car models are also equipped with Autopilot self-driving capability. With a single recharge, Tesla’s different models drive about 220-335 miles (Tesla,n.d). Tesla’s models come with passenger seating capacity of 5-7, like the traditional cars. The major competitors…show more content…
The ultimate Objective of the strategy is, Tesla should be successful in creating the market for it’s futuristic electric cars with full auto pilot capabilities, successfully project this new age technology as the sole alternative to the fossil fuel based traditional design, and establish itself as the leader in the transformed market. While this is the long-term objective, the short term tactical objectives are two folded. First, close the gaps in the design soon, with it’s auto pilot capabilities and with it’s super power battery. Second, establish the required production capabilities to meet the customer demand, for it’s new age car. Based on the product portfolio of Tesla, it is evident the targeted customers are mostly millennials from the middle income to upper middle-income population segment, who are enthusiastic to try the car based on innovative technology(Korosec,2015). While Tesla isn’t facing much competition at present, but the Competition is brewing up. Tesla’s existing competitors in the existing market are Chevy Bolt and Nissan Leaf (Trainer,2018) and the emerging competitors include lot of big players like GM, Volvo, Audi, Jaguar, Mercedes Benz Volkswagen etc., who are all investing heavily in the electric autopilot segment. Tesla’s core strategy comes with the value proposition built based on the truly futuristic technology used in designing the car, which give taste of exciting self-drive auto…show more content…
While Tesla’s actions are in sync with the long-term strategy, actions taken to meet the short-term objectives are not yielding the expected results. For example, Tesla couldn’t ramp up it’s production capabilities as required, to bring down the wait time associated with delivering it’s cars. On top of it, Tesla repeatedly experiencing production problems and other quality issues which are frequently delaying the deliveries. The targeted customer segment for Tesla’s cars is well differentiated and the product is well positioned in that segment. The challenge Tesla facing is actually in producing the cars, but not with marketing them. Currently, Tesla is not facing much competition due to couple of reasons. The first reason, competitors of Tesla are still mastering the technology to produce similar cars, so they are not ready yet to give stiff competition. Second, the volume of cars produced by Tesla is very less compared to the customer demand for it’s EV Autopilot cars, so it is hard to conclude on Tesla’s capabilities to withstand competition, as there isn’t any real competition in the segment. In this connection, it is also important to keep in mind, all of Tesla’s competitors are huge producers of traditional gasoline cars and other hybrid vehicles, and the EV market is only an additional line on top of their existing product lines. Whereas
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