Nov 19, 2020 in Management
Tesla Motors


Strategic management and competitiveness strategy is basically an approach to systematic planning and execution of a company's success pathway. Such business strategies require multiple objectives and constrained within definite time frames in order to realize the outlined goals and objectives. Tesla Motors is a Silicon Valley-based company which was founded by a group of engineers in 2003. The objective of the engineers was the transition of the world towards sustainable energy as indicated by electric powered cars performing better than gasoline powered cars. Tesla Motors launched its first car; well known as the Tesla Roadster in the year. Later in the year 2012, Tesla launched the first premium electric sedan in the world, Model S. positive progress of the company was evident in 2014 when handling and performance of Model S were improved. This was enhanced by CEO of the company after he configured the vehicle and unveiled two dual motor all-wheel drive. The paper hereby focuses on the success of Tesla Company as a component of globalization and technology, the companys organizational model, stakeholders as well as the vision and mission statements of the company.


Globalization and technology change

Globalization enhances the expansion markets and the establishment of business to business platforms. Globalization has helped Tesla Motors to expand its market all over the world and interact with other companies such as Toyota Company and those companies that produce batteries such as Panasonic. Business to Business (B2B) platforms increases the opportunities of Tesla Motors, and this has made the company to realize efficiencies in production along with reduced cost.

Tesla Motors is associated with high scale incorporation of information technology (IT) within the various components of the electric vehicle business model. The companys innovation have continued to improve the connectivity between its customers and the environment with improvement in matters such as charge location and better battery life. Additionally, there are massive aspects of information technology that is encompassed in the companys online and merchandising outlet dissemination networks.

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Industrial organization model and the resource-based model

The industrial organization model outlines that external factors that shape the company's environment are essential than the internal aspects ideal for the realization of business advantage. On the basis of industrial perspective, it is critical to appreciate the attractiveness of the automotive industry with regard to Tesla's role in order to examine how Tesla can become more profitable. In the industrial organization model, Tesla ought to consider the Porter's Five Forces models which are composed of five elemental components including competition rivalry, buyers' power, suppliers' power, the threat posed by new entrants and substitutes. To remain competitive in the industry, Tesla must continually develop unique competitive strategies that adopt advanced technologies and cost optimization strategies.

From a resource-based model point, the focus is on internal resources. According to Kostic, a resource based strategy is founded on the integration of internal resources such as capital, the skills of the employees and management competencies. Tesla achieves a sustainable competitive advantage against its competitors by bringing together its resources in a way that is smarter than its competitors. Another critical technique is the improvement and constant creation of sustainable business systems. This is realized through cost-effective measures including those that guarantee less wastage.

To earn above average returns, Tesla Motors came up with a business model that would of much help. The model is characterized by four major parts that include the innovation towards vehicles, value configuration, and innovation towards infrastructure as well as an innovation towards batteries. Tesla has invested much on vehicles and has released two models of vehicles in the market, the Tesla Roadster and a Sedan Tesla Model S. Through its innovation, the company will commercialize two other prototypes, a family car Tesla 3 and SUV Tesla Model X. Changes towards vehicles has made the company to gain a high reputation for its high-performance cars that has corresponded to its high-end customer segment.

Vision and mission statement of Tesla Motors

Teslas vision statement is to create the most compelling car company of the 21st century by driving the worlds transition to electric vehicles. The latter accentuates the corporations emphasis on renewable energy. Tesla is determined to achieve this goal by incorporating the state of the art technology for electric model vehicles. Indeed, the companys management in electric automobile designs gratifies the 21st-century element. This is to imply that Tesla adopts progressive technology in order to address contemporary issues that include ecological conservation.

On the other hand, Teslas mission statement was initially, to accelerate the worlds transition to sustainable transport. There was though a change of the mission statement in mid-2016 and now is, to accelerate the worlds transition to sustainable energy. According to the new mission declaration, there is bound to be a small but noteworthy change in Teslas business; to address marketplace prospects for renewable energy. The acceleration element of the declaration inaugurates the role played by Tesla driving the locomotive industry in the direction of maintainable business and keen on renewable energy. The world transition, is a concept that describes the firms anticipation of successful supremacy in the global market of electric vehicles. This element is directly associated with the declaration of the vision with regard to establishing a global market. Additionally, the transformation from transportation that is sustainable to sustainable energy demonstrates that the company's determination towards declaring a match for the existing strategic goals. For instance, Tesla focused on electric vehicles alone but due to the increasing demand for energy that can be renewed, the company has initiated a business opportunity that considers the production of batteries and also focuses on other possibly future but profitable renewable energy resolutions.

Stakeholders impacts on the overall success

The success of Tesla Motors is largely dependent on the firm relationship that the company has maintained with its stakeholders. As a result of the relationship, Tesla has developed a strategy geared towards achieving sustainability and environmental friendliness within the automotive industry. Adoption of such corporate strategies is a benefit to the stakeholders and equally, boosts the brand image of the company. Tesla's stakeholders include the community, employees, customers and shareholders. With regard to communities, Tesla acknowledges that communities are key in determining the brand image of the company especially by ensuring that the natural environment is protected. Zarko et al.,argues that Customers have an interest in the quality product and realistic pricing and hence greatly affect Tesla's revenue. The management of Tesla also is kept on toes to meet the interests of its customers. Employees, on the other hand, play a critical role in influencing business performance and productivity by seeking good compensation and career development strategies. Finally, the shareholders are critical in determining the capitalization of Tesla as they are interested in profitability and growth of the company.


From the discussion, it is essential to note that for Tesla Company to attain a favorable competing ground, it ought to integrate the different management strategies and involve the various stakeholders in the decision-making processes. Also, to realize strategic and competitiveness strategies, it is paramount for a company to develop effective strategies that enhance the understanding of the business ecosystem as well as the stakeholders that constitute it.


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