Reference no: EM131738741
Summarize the paragrph and make it a point form( I am going to present that only 2 mins) for the internal analysis
Tesla Motors Company operates in the innovative car industry. The company has presented its models in electric cars and was founded in 2003 when the founder took the challenge to build an environment-friendly vehicle. The resulting business was a combination of high-tech and car manufacturing industries. The company received information from various fields to present its first model in 2008. Although the company took five years to offer a single deliverable as a sign of profitability, it didn't show a profit until 2013.
As it is clear from the company's operations, the organization holds its vision to become the most outstanding company of this century which will lead the vehicle manufacturing industry towards electric cars production. This vision shows that the car manufacturer focuses only on the development and innovation of electric cars at the expense of traditional vehicles run by gasoline (Musk, 2013). Furthermore, the company aspires to be an industry leader in the industry segment it has established.
Initially, the company held its mission that it would facilitate the world's transition from traditional energy solution for transport to more sustainable commute solution (Musk, 2013). However, as the company has broadened its scope of performance, it has revised its mission statement to replace emphasis on transport by emphasis on energy.
For the next three years, the company plans to increase its supply of vehicles by increasing production at its plants, launching new models, and developing a practical model of self-driving cars. The entity will achieve its goals of increased production by completing its factory in Nevada, United States. Once the facility starts operating, the output units will not only increase in number, but they will also be less costly. The company will fulfill a part of the second promise in short time by launching a model which currently is in the testing phase. The third goal is also seeing progress as the company has developed models which offer a semi-autonomous driving solution. It is prudential to expect level 4 autonomy in Tesla cars by the end of 2020.
For the current strategy, the company targets customers of the elite class who are interested in sustaining the environment and prefer advanced technology over the traditional commodities (Tesla Motors Deca, 2017). The core competencies of these products include the environmental sustainability they provide, its brand image, its battery range, and it's superior software solution which aids driving. Although, these products show many salient features in comparison with the competing vehicles, the primary competitive advantage of this business remain with its ability to understand the industry trend and stay ahead of competitors in fulfilling demand gaps.
The company observes its operations in a centralized setting. All the functions have to report to the headquarters in California, United States. Headquarter is responsible for decision making and developing and implementing strategies. The most apparent strategy of the business is to reduce risk to quality by decreasing reliance on external suppliers. The company ensures that the components it is using are of high quality by building these components within its premises. Furthermore, the company facilitates its customers in their after-purchase needs in the form of supercharging stations. It also reduces distribution costs by supplying its vehicles through its stores.
As the company appeals to the consumers' needs of innovation and environment-friendliness, it can sell its product in more volume than it estimated. The demand for these cars is on the rise, and the company is expecting to meet these demands with the additional setup in Nevada.
Although the organization targeted domestic consumers for the sale of its vehicles, it has gained more recognition in China and Europe. The company currently holds 0.3% of total vehicles sales in America (Statista, 2017). However, among the industry niche of electric vehicles, Tesla's sales amount to 30% of total sales.
The company is committed to the development of new models to maintain its influence over car market; however, it is currently facing a backlash from investors because of the slow manufacturing and the delay in the launch of Model 3.
Additionally, the company also scores high at consumer satisfaction. Almost 91% of the total customers of Tesla Motors opined that they would want to have the deal once again (Consumer Reports, 2017). This high score of satisfaction goes to low maintenance charges this car needs and smooth driving experience.