Tesla Motors, Inc. is an American company that designs, manufactures, and sells electric cars and electric vehicle powertrain components. Tesla Motors first gained widespread attention by producing the Tesla Roadster, the first fully electric sports car. The company's second vehicle was the Model S, a fully electric luxury sedan. Tesla also manufactures and sells electric powertrain components, including lithium-ion battery packs, to automakers, including Daimler and Toyota. Tesla's CEO, Elon Musk, has said he envisions Tesla as an independent automaker, with the goal of eventually offering electric cars at a price affordable to the average consumer. Lithium- ion cell commoditization and high-end product strategy shield the company from significant interdependence and integration risk.
Tesla Motors Inc. (Tesla) is a company based out of Silicon Valley that designs, assembles and markets battery electric vehicles (BEVs), in addition they produce lithium-ion battery packs, and electric vehicle powertrain components. Founded in 2003, Tesla was the first new American automobile manufacturer to appear in years. It was the first automaker to manufacture and sell proficient BEVs in production. The company’s tactic is not really that of the “Detroit” approach more of a one of a kind “Silicon Valley” style, self-reflected of a method that is remarkably hi-tech and innovative, tremendously assertive and very efficient. They have grown from one retail store to 18 stores worldwide, a 350,000 square-foot production facility and global sales in at least 30 countries. Tesla successfully debuted its opening public offering, raising over $226 million on the 29 of June 2010. Tesla was founded by Martin Eberhard (CEO), and Marc Tarpeninning (CFO), and was named after Nikola Tesla, to begin the development of an original electric sports car. Elon Musk creator of PayPal funding the company $30 million in 2004 to kick it off, and was named chairman of the board. In 2007 Eberhard resigned as the CEO of the company and president of technology and joined the advisory board. Proceeding in 2008, he left the company completely, and remained as trophy shareholder. Tarpenning who was CFO, VP of electrical engineering, and development of electric and software systems for the Roadster; resigned from his positions in 2008. Musk then took over as CEO in 2008. In 2008 Tesla released its first car, the Roadster; which could travel 245 miles on a single charge and travel 0-60 mph in less than 4 seconds, ...
... decrease. In the other hand, if consumer trends for EV’s rise, the company should be in great shape to create economies of scale and tackle sales, as their technology and products are already on display and growing. This scenario of market growth will lead other companies to introduce opponents for Tesla’s products, although currently the opportunity is on the table to show consumers the breakthrough in EV technology by Tesla. Tesla’s intense research and development can lead the company to innovate and produce lower cost EV’s that are in effect a threat to the company, as many other low cost EV’ are already offered. Still Tesla offers high range vehicles were other class vehicles do not compete, such as Mercedes, Audi, and BMW. This is important to note as brand equity could increase as it can be compared to brands that have long operating records of success.
The main theme in this article is how Tesla’s innovations are transforming the auto industry. The company has innovated and produced desirable electric cars like Model X doors. The proponent of this argument hold that the losses that Tesla has had are just short run and hold that Tesla is producing extremely needed electric automobiles. These vehicles have fast speed and go long distance over other rechargeable cars (Gregersen, 2016).
Tesla has managed to build a notable brand name for itself not in the electric car market, but in the overall automotive industry. Its brand performance offers a robust, reliable and unique image that gives customers the satisfaction that electric cars can be stylish, reliable, hassle-free and much less bulky than internal combustion engine vehicles.
For years, Tesla has struggled to achieve and maintain profitability, despite a soaring stock price in recent years. That profit level would suggest that Tesla as a company is still in the Introduction phase of its life cycle, even though they’ve been around for almost 15 years. On top of their longevity, Tesla has become increasingly relevant in the automotive industry, most likely aided by a societal shift in thinking about conservation, and leading technological advancements. We believe that Tesla exists in a unique space between the Introduction and Growth stages of the textbook-defined product life cycle. More profitable results in a foreign market like Japan may not require a drastic shift in distribution strategy, however. As we’ve covered,
A differentiation strategy and generic business strategy seeks to create higher value for customers than the value that competitors create, by delivering products or services with unique features while keeping the cost at the same or similar levels. Tesla cars have a brand image in the market they are the best in the industry. This differentiation is increasing Tesla market share. Although, BMW series cars had 2-3% US market share, they are not giving as mileage as Tesla cars are giving. A generic cost-leadership strategy, in contrast, seeks to create the same or similar value for customers by delivering products or services at a lower cost than competitors, enabling the firm to offer lower prices to its customers. Tesla cars are very expensive. As an introducer, its products are expensive initially but, when the production and demand increased EV’s value will reduce. Also, the company focused on the scope of competition—whether to pursue a specific, narrow part of the market or go after the broader market. Tesla focused primarily on the narrow market globally that is, since, its cars are expensive for more sales and to get more revenue it started selling in around 30 countries via the internet and local Tesla stores. Now, the company is also concentrating on the mass market, which makes it turn into a profitable company.
Ford Motor Company is one of the greatest and most successful automobile manufactures (Bryant University, 2004). It was founded in 1903 in Detroit, Michigan by Henry Ford, an innovative individual credited with the introduction of mass production through his assembly line. The Model A was the first car off its production line, and sold for $850. Its considerably low prices and stellar performance of its vehicles ensured that Ford made a steady progress into the global arena, expanding into European nations such as Germany, France and the United Kingdom. The company’s mission and vision revolves around the context of “One Ford”; that is, one team, one plan, one goal-whereby the overall vision is to deliver profitable growth for all (Ford, 2014). Its social responsibility statement is to create long-term value as a corporate citizen. The company believes that it is only as strong as the community in which it operates within (Ford, 2014).
Finishing my brand community report I’ve learned a great depth about the brand community I chose. One group of people with the same love and passion for a brand can join together and basically create a whole new world under their prospective in a positive and progressive way. I’ve discovered there is more to just buying a vehicle and driving it. People around the world join communities and partake in new ventures for tons of moralities movements, insights, companionship, and overall enjoyment for the brand and each other. The research I’ve gathered from Porsche Club of America and the knowledge I’ve learned from brand communities in general has truly widen my prospective of the greater good that can come from modest love of a product. This movement is definitely pushing forward each day and has an inevitable future of growth.