Strategy_tesla Inc.docx - GROUP NO. 4 Strategy of Tesla...

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GROUP NO. 4Strategy of Tesla INc.The BeginningAccording to the About Tesla page, Tesla’s mission is to accelerate the world’stransition to sustainable energy. In 2008, Tesla introduced its very first cutting- high-performance electric sports car . The Tesla Roadster. Elon Musk, the CEO of Tesla Motors andCo-Founder, stated that “Tesla Motors is to help expedite the move from a mine-and-burnhydrocarbon economy towards a solar electric economy, which I believe to be the primary,but not exclusive, sustainable solution”(Musk, 2006). The Roadster was based on the LotusElise. It can reach 393 km on a single charge with its lithium-ion battery pack. Tesla was firstintroduced into the automobile market by targeting high-tech car segments as a NicheDifferentiator, with its sustainable competitive advantage to distinguish itself from thetraditional automobile makers with sustainable, eco-friendly electric cars.”.Next StageWhen Tesla finished establishing its brand and started producing more and more cars for itsbuyers, and established its costumer base, thats when it started reinforcing its businessmodel. Teslas business model is based on three parts.1.Direct sales: Unlike other car manufacturers who sell through franchised dealerships,Tesla uses direct sales. It has created an international network of company-ownedshowrooms and galleries, mostly in prominent urban centers around the world. Byowning the sales channel, Tesla believes it can gain an advantage in the speed of itsproduct development. But more importantly, it also creates a better customer buyingexperience. Unlike car dealerships, Tesla showrooms have no conflict of interest.Also, customers only deal with Tesla-employed sales and service staff. Including theshowrooms, Service Plus centers (a combination of retail and service center), andservice facilities, Tesla has 429 locations around the world as of the end of Q42019. Tesla has also made use of Internet sales—consumers can customize andpurchase a Tesla online.Page1of5
GROUP NO. 42.Service: Tesla has combined many sales centers with service centers. They believethat opening a service center in a new area corresponds with increased customerdemand. Customers can charge or service their vehicles at the service centers or theService Plus locations. Also, in certain areas, Tesla employs what it calls Tesla Rangers– mobile technicians who can service vehicles from your house. Sometimes, noonsite technician is required at all. The Model S can wirelessly upload data sotechnicians can view and fix some problems online without ever needing tophysically touch the car.

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Term
Spring
Professor
VAIBHAV
Tags
Internal combustion engine, Automobile, Tesla Motors, Electric car, Electric vehicle

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