Tesla Case Study

Resources and capabilities that big automotive firms have that Tesla may be lacking In the recent past, Tesla has been noted as a great competitor in the automotive industry. This is attributed to its three huge competitive advantages. Generally, the advantage lies in its ability to bring about innovative disruption in the industry. This include; a strong battery supply chain that is sustainable in itself, a supercharger network celebrated by the customers and a software system several leagues ahead of its competitors (Zach, 2015).

Tesla Motor Company Company Overview- 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.

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,

Tesla is to be considered as a new high tech automaker that produces and sells top of its class electric vehicles and power trains. Utilizing its competitive advantage the automaker has positioned itself through its technological leadership and exploiting its competitive differentiation. That is to deliver high rated environmentally dependable vehicles with the benefits offered by most premium cars already in the market and beyond. There is no doubt this segment leading technology will continue to evolve, but most importantly, the list of patents the company holds will hedge against new entrants and imitators, enabling Tesla, domination of the market in the short term while the future of the EV segment is define.

INNOVATION IN INDUSTRIAL PRODUCTION Topic Innovation in Industrial Production-Forbes News Main Theme Tesla’s Innovation are transforming the auto Industry Main World Region America Subthemes Desirable Electric Vehicles (EV) and Transforming Auto Industry from ICE vehicles to electric vehicles Introducing Main Theme

1. Are Electric Vehicles (EVs) comparable to internal combustion engines (ICE) technology vehicles? Do EVs represent a disruptive technology? The electric vehicle is a simple wiring project whereas, ICE cars looks like a big project with a fuel lines, exhaust pipes, coolant and a big engine.

Research Questions 1. What is the history of Tesla Motors marketing challenges? Despite its success, Tesla Motors has been facing serious challenges throughout its history, for example: • Tesla is a stand-alone luxury brand, and a startup company • Tesla’s product is a completely new type of mass-produced vehicle: a fully electric car • Due to physical reasons, Tesla vehicles cannot be recharged comparably quickly to a petroleum fuel-powered car • Tesla is challenged by restrictions to getting their cars to market • The lifestyle of owning and driving a Tesla vehicle is different from common cars 2. What were the critical marketing decisions that helped Tesla stand out among other companies and become the lead innovator in its

Product Positioning and Strategy Customer Value Proposition Tesla offers adults who want a luxury car without paying a fortune in gas prices with future generation electric cars, that where style, performance, and the environment are never sacrificed. Points of Difference Here is the list of characteristics that allows Tesla to stand apart from its competitors: Brand Name 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. Battery Supply chain

Tesla Gigafactory: The Future of EV’s Austin Ogden SOS 324, Spring 2015 On June 12, 2014, Elon Musk shocked the business world by revealing that Tesla Motors will not initiate patent lawsuits against anyone who uses their technology in good faith (Desjardins, “10 Mind Blowing”). For those who don’t know who Elon Musk is, he is the CEO of SpaceX and the CEO of Tesla Motors. Electric vehicles have currently been creeping up on the world and are starting to become a big thing. One company that I think is leading the movement of electric vehicles is Tesla Motors.

Introduction The American Auto Industry has been able to adapt to the fierce competition from foreign companies. One way it has done this is through technological advances that have improved the quality of their product while making it environmentally friendly. Despite these changes, it still struggles to retain a strong foothold in customer satisfaction among its consumers. Competition Since the time of Henry Ford in the early 1900’s, the auto industry in the United States enjoyed almost complete supremacy, with little foreign competition.