Case Study: Tesla Company Analysis

The Tesla company was initially founded with an idea that electric cars can be better, quicker, and more environmentally friendly. Therefore, it was established that the main mission of the organization is “to accelerate the world’s transition to sustainable energy” while the vision is “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles” (Rowland, 2018). Both of these statements are current and meant to represent and support the company’s ideas during the work process. The objectives and strategies developed by the company focus on long-term success and the encouragement of customers to pay a premium for high-quality products. While being true to its mission, Tesla achieves high sales and is the leading producer of electric cars worldwide.

5 points related to SWOT

Instead of delivering affordable cars, Tesla targets a specific niche which is the luxury electric cars market (Frue, 2019). This strategy allowed the company to become the leader in the niche and take over the overall automobile space.

Tesla is spending a large amount of money on expansion, research, and development (Frue, 2019). While this strategy can lead to positive results, the profits of the company are much smaller than the spending.

The company has a serious problem with the distribution strategy which prevents customers from receiving their cars on time. This issue is a weakness and can lead to a decrease in the popularity of Tesla automobiles.

The organization supports the worldwide interest in sustainability and the creation of appropriate living conditions (Frue, 2019). Its focus on the production of cars that do not harm the environment makes it more and more popular in the market.

While being an authentic brand, Tesla still faces competition from other car companies (Frue, 2019). There is a chance that they also might switch to electric cares production, putting the company at risk of being replaced.

The first business function that can be strategically aligned to the organizational structure is sales. Tesla uses direct sales by establishing company-owned galleries and showrooms (Zucchi, 2019). Thus, an effective organizational structure with experience staff contributes to a positive customer experience. In addition, the HR function of the company gives it the possibility to recruit and offer positions to individuals who share the mission of the company and contribute to its effective operations. Finally, the marketing function is strategically connected to the organization since it fulfills the goal to produce long-term success and be the leader in the market.

To remain popular, Tesla company can look for helpful strategies that can be used shortly. For instance, while other car companies can switch to electric production, Tesla can implement a Diversification or Strategic alliance to deal with this phenomenon, compete, and operate effectively. The first concept can help the business to be more distinctive and represent its distinctive characteristics efficiently to influence the purchase decisions of customers. At the same time, the second concept can help to establish partnerships with other organizations that have similar goals and objectives. In this way, serious competition in the market can be avoided, and the Tesla company can produce new innovative products while working collaboratively with other brands and organizations.

New brand vision

The company should still focus on the aim of producing cars from sustainable materials. However, it might find it helpful to point out the positive consequences for the environment more.

Since there is a serious threat to competing with other car companies, it is essential to indicate the differences that these brands which make them authentic.

Be the company that is famous for high customer satisfaction due to high-quality services.

Be the brand that values its employees and contributes to their self-realization and development.

Support the main mission and follow it even in times of challenges.

References

About Tesla. (n.d.). Web.

Frue, K. (2019,). Tesla SWOT analysis: Is debt the company’s major threat? Pestle Analysis. Web.

Rowland, C. (2018). Tesla, Inc.’s mission statement & vision statement (an analysis). Panmore Institute. Web.

Zucchi, K. (2019). What makes Tesla’s business model different? Investopedia. Web.