The main issues that Tesla Motors is currently facing are associated with the acceptance of the new electric cars technology by the customers, reduction of manufacturing costs, and improving the company’s distribution channels. To gain a competitive advantage in the face of increasing demand and technological advances, companies need to innovate and improve processes and quality while reducing costs. There is an objective for the company to formulate, execute, and finally evaluate the strategic components.
The first part of the strategy is planning, and it includes setting goals and objectives, as well as the company’s mission and vision. In addition, companies need to assess internal and external issues, competitors, industries in which they do business, and other factors that may affect the company. In such situations, the company needs to develop or build a strategy (Thomas & Maine, 2019).. Therefore, Tesla Motors needs to develop a strategic plan that best meets its goals and allows the company to profit from current and future strategies. Tesla’s goal is to build the most technologically advanced enterprises of the 21st century with the mission of achieving a sustainable solar economy.
The execution process is the next part of the strategy and is influenced by organizational structure, procedures, and leadership. At the operational level, Tesla Motors needs to define its goals and decide from many options, such as whether to build a luxury car, a luxury car, or a cheap car for the general public. All of these aspects need to be taken into account when implementing the strategy.
The final part of the strategy is the evaluation process. This process requires Tesla management to review and evaluate the developed and implemented strategy and evaluate whether it worked as expected. Strategies can be evaluated by comparing them to competitors or last year’s performance (Qin et al., 2021). Tesla Motors has developed a number of tactics to build partnerships with various companies to advance that goal. In addition, these methods and collaborations have helped companies raise cash and increase market sales.
In order for a company to grow in the market and maintain its viability, it should develop long-term and short-term strategies, define accurate goals, and make effective decisions to achieve those goals. Tesla Motors needs to establish and implement an effective strategy in order to maintain the status of one of the fastest-growing industries in the development and production of electric vehicles. Strategy formulation and execution is one way of solving the issues standing behind the company.
References
Thomas, V. J., & Maine, E. (2019). Market entry strategies for electric vehicle start-ups in the automotive industry–Lessons from Tesla Motors. Journal of Cleaner Production, 235, 653-663. Web.
Qin, Y., Xiao, Y., & Yuan, J. (2021). The Comprehensive Competitiveness of Tesla Based on Financial Analysis: A Case Study. In 2021 International Conference on Financial Management and Economic Transition (FMET 2021) (pp. 462-469). Atlantis Press.