Tesla Inc. Strategy

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Tesla Inc. uses a combination of strategies to achieve their goals. The use of Integration Strategies (Forward and Backward) are an attempt to better control the cost and availability of raw materials (acting as its own Supplier) and to lobby for regulations and permissions to expand the business into a larger marketing share while maintaining an environmentally ethical stand. The use of Intensive Strategies (Market Penetration, Market Development, and Product Development) are the means by which Tesla Inc. grows their business and market share. Through new opportunities in Asia and Europe Tesla can expand their presence and increase global sales. Market Development is their area of competency – R & D is the center of the business and it is this area where Tesla makes its greatest strides. Product Development is a non-stop activity, and this is where they make their mark in product differentiation and value-added features. Retrenchment as a strategy concerns continued cost reducing measures through greater bargaining power as a supplier, buyer continued improvements in technology and software.

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The management functions such as planning, organizing, motivating, staffing, and controlling all affect how Tesla creates and reaches its goals. Planning is a functional area where improvements are needed when designing objectives and goals with attainable timelines and costs. Tesla has seen many issues in this area. Organizing as a function concerns the obtainability of all resources where in the case of raw materials there have been delays and shortages, as well as cost over-runs. Motivating is one are where Tesla excels. Not only are the employees motivated to do more and at a greater pace but also Tesla’s loyal customers are also willing to go beyond the required functions to see to it that Tesla reaches its goals and objectives. The area of Staffing has presented issues when it comes to the high stress environment and the constant push to “think outside the box” and find more and more creative solutions or advancements. The last area is the Controlling function. This is the area that Tesla needs to “rethink” its timelines and objectives. The fast-paced environment has been shown to be out of sync with the reality of the supply chain and production timelines and costs. To achieve the stated goals for the 3rd quarter Tesla badly hemorrhaged funds to step the level of production and distribution. This created additional stress for those already dealing with a stressful position of employment.

The organizational culture is extremely stressful and fast-paced leaving this an environment few can excel. Senior staff turnovers have created additional issues for the company with some executives not willing to be held under severe scrutiny daily. Though the company provides training and resources to help employees balance the stress and work/life balance, many find this to be inadequate. All this affects the Staffing function (HR) as well

Corporate Social Responsibility is the core value of Tesla. The environment and consumers having a balanced and safe existence is the premise of Tesla Inc.’s existence. Working with governments, nationally and globally help Tesla continue their drive to a zero-carbon footprint existence; even when it seems that Tesla is taunting government agencies.

Tesla’s innovated use of non-marketing techniques has proven to be a successful use of social media and word of mouth sales pitches. Tesla expends little to no money on marketing and sales. The website handles automobile orders and more.

Where finances are concerned Tesla is in a poor debt to equity position. Too much money was spent to bring up automobile production in order to meet the 3rd quarter goals. The poor planning and lack of a reasonable timeline to achieve these goals nearly brought Tesla to bankruptcy. This area is the most crucial part of Tesla’s ability to succeed or fail.

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Tesla Inc. strategy. (2019, Dec 30). Retrieved December 6, 2022 , from
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