Tesla Case Analysis - I Objectives Teslas vision is to...

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I.ObjectivesTesla’s vision is to “create the most compelling car company of the 21stcentury by driving the world’s transition to electric vehicles” (Tesla Motors Company Overview). When Elon Musk first invested in Tesla, he wanted to leave a legacy car; a technologically advanced, high performance, highly efficient, and environmentally friendly vehicle. Tesla’s overall goal for its customers is to provide them with the most efficient electric cars on the market and be the number one maker and distributor of these types of cars.II.Identification of the Customer ScenarioThe target market for Tesla definitely lies with the wealthy. These electric cars come with a hefty price tag over $60,000, for the Model S, and up, where one will find the Roadster. That being said, Tesla vehicles are a luxury. Tesla is well aware that the younger crowd is still earning money and therefore goes after older generations that have the financial backing and are looking to spend extra cash. Many upper middle class citizens are growing tired of the Toyota Prius and are looking for something new and fresh. Tesla offers an alternative to the everyday gasoline powered car by using an electric battery. With this electric car, a market of fuel efficient and environmentally friendly customers is created (Davis).III.Identification of the Firm’s Management Stance and Nucleus of ControlThe nucleus of control at Tesla is Elon Musk, one of Tesla’s first investors, because he makes the important decisions that move the company forward. Tesla was founded in 2003 by Martin Eberhard and Mark Tarpenning. Eberhand was CEO up until 2007 when he was fired by Musk
Tesla’s Mintzberg stance is reactive since they joined the existing market that is the electric car market. Other vehicles in this particular market are the Toyota Prius, Nissan Leaf, and Chevorlet Volt. Tesla’s electric car is not only electric, its run lithium-ion batteries and falls into the category of luxury sports cars. Tesla approached the electric car market by making theirs different and patenting their ideas for protection. Although Tesla was not the first to make electric vehicles, they were able to observe how potential buyers would react. After discovering that the environmentally friendly cars were something to look at, Tesla not only entered this area but made the first totally electric carwhereas as others had gasoline backups. Sooner or later, gasoline operated vehicles will no longer be an option and alternatives will be dominating the streets. Luckily for Tesla, it will be able to pioneer and pave the entrance of the new wave of automobiles. As othersubstitutes for electricity are coming to light, Tesla will have to put some money into researching them and then producing either the first car of its kind or quickly follow the lead, all with a touch of luxury.

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