Introduction
Tesla was founded by the ambitious engineers Martin Eberhard and Marc Tarpenning in 2003 who are willing to disrupt the automotive industry (Reed, 2020). Tesla has been named after Nikola Tesla who is one of the major pioneers of electricity invention; Tesla’s founders wanted to create a game-changer car where it would be revolutionary in the electric vehicle (EV) business (1). The essence of Tesla was an environmentally friendly car with exotic features that would be easy to market. One of Tesla’s focal points is converting to zero-emission cars to cope with the crisis change issue and to encourage people to drive more electrical vehicles cars. In 2004, Elon Musk came into the picture by investing $30 million into the company and then became the chairman. Eventually, by 2008, Tesla revealed the first electric sports car known as Roadster in San Carlos, California (Reed, 2020).
According to Statista, the automotive industry has been an essential factor in contributing to the CO2 emissions worldwide by 41% worldwide (2). As climate change became a pivotal issue for the UN and world government, they signed a pact, the Paris Agreement, to halt global warming. The auto industry relies heavily on fossil fuels which are the main contributor to climate change; here comes the EV as the smart solution to cope with global warming. EV market sales have been increasing immensely by more than 40% each year on average since 2016, which is due to the existence of major players like Tesla (3). Tesla’s value proposition would include environmentally friendly cars that would encompass innovation, unique designs, efficacy, long-range distances, and low-cost recharging (4).
EV current market
The EV market has been growing exponentially as in 2021 6.5 million electric cars were sold worldwide, and 85% of EV sales were related to customers in China and Europe which are considered the EV’s biggest markets (5). In terms of Tesla’s sales, the Model 3 triumphed in 2021 as the most sought EV car in Europe (5). According to Bloomberg, China has the largest EV cars quota with 34%, followed by the United States at 28%, and then Germany at 11%; in terms of EV transformation, Asia is leading the way, followed by Europe and the United States (6). Within the context of the EV market, governments were incentivizing people to buy EVs by facilitating lower interest rates on EV loans in addition to tax credits (7). Norway is one of the countries relying upon EVs, and in 2021, 75% of cars sold were EVs; furthermore, the Norwegian government is willing to completely cut the ICE cars by 2025 (7). Moreover, the potential growth of the EV market is expected to speed up as the United Kingdom prepares itself to launch its 2030 vision of banning new petrol and diesel car sales (8). Now there have been new players emerged in the EV manufacturing market. One of the main players in the EV market is GM, which had started its EV project back in 1996 before aborting it in 2002 due to high costs and limited potential for the EV market, however; by 2015, Chevrolet released its first-ever EV (9). GM wants to prove its capability of building EVs that can compete with Tesla and capture their market share; moreover, GM unveiled its new Cadillac Lyric which is categorized as a high-end luxurious EV (10). According to Deloitte, in 2018, the EV market had achieved of selling approximately 2 million cars worldwide; it is forecasted that, by 2030, EV sales will reach 21 million units (11). Still, within the context of EV market players and entrants, it is a must to mention Nissan as a major player in the EV market. According to Forbes, Nissan had pledged to invest $17.6 billion over the next 5 years to foster their ambitious strategy, proceeding with Nissan’s lucrative strategy they are going to introduce 23 new EV models (12).
Tesla market position
In 2021, Tesla led the EV market share by selling over 936,000 units, giving it a 14% quota of the EV market (7). Financial basis regardless of all market turbulences due to COVID-19 Tesla’s stock price had showed stability. Tesla is successfully coping with the major supply chain issue; in the first quarter of 2022, Tesla managed to sell over 310,000 electric cars which surpass 2021 sales by 68% (13). In addition to Tesla’s manufacturing of EVs, it has been involved in the manufacturing of unique power solutions such as Powerwall, powerpack, and solar roofs which give the capability in terms of inventory and utility for managing the renewable source energy of home or business owners (14). Furthermore, with the expansion of the EV market, it is expected by 2030 EV market share in the US market would reach to be 40% of the automotive market (15). Tesla currently owns five factories with a production capacity of more than 1 million EVs (13).
Figure 1 is a graphical representation that illustrates the production and delivery trends of Tesla’s EVs over the period from 2012 to 2021. It provides valuable data on the company’s performance and growth in terms of manufacturing output and customer deliveries within the EV industry.
Figure 1. Tesla production and deliveries from 2012 to 2021 (13).
In the context of the study “Enhancing Organizational Value: A Case Study of Tesla’s Operations and Marketing Strategies in the Electric Vehicle Industry,” this figure is relevant as it offers crucial insights into Tesla’s operational performance and market presence. The data on production and deliveries are used to analyze the company’s capacity to meet customer demand, its ability to scale up production, and its overall efficiency in operations.
By examining the trends depicted in “Figure 1,” the case study can assess how Tesla’s operations and marketing strategies have impacted the company’s production capabilities and its market share in the EV industry. It potentially highlights the successful strategies that contributed to increased production and successful delivery rates, as well as any challenges or bottlenecks that may have hindered growth during the specified period.
Overall, Figure 1 served as a valuable data tool for this study, providing essential information to analyze Tesla’s operational performance and its alignment with marketing strategies to enhance the organization’s value in the competitive EV market.
Tesla operations management
The success of Tesla highly relies on its successful business model or storytelling about how it is important to cope with the climate change issue by cutting greenhouse gas emissions by driving EVs. Furthermore, Tesla is more than a car or charging station and also managed to establish itself as a lifestyle and a culture for its consumer (16). Tesla’s growth is backed by its board’s courageous strategic moves, such as focusing on its market segment to guarantee brand loyalty and then diversifying the company’s portfolio (17). The success of any organization starts with its operations strategy, as it is showing the ability to how can an organization create, develop, and deliver services and products (18). Moreover, operations management is seen as a pivotal function in the organization as it is supposed to main communication and cooperation with the rest of the functions. Regardless of the size of your company, operations management is seen as a basic entity to maintain the running of the business, and the main notion of operation management as a function is using resources to suitably create outputs that fulfill defined market requirements and needs (18). Aligning with operations management, there must be an operations strategy, and having a supplier-focused operational plan could give rise to a restructuring for the company, involving activities being outsourced and insourced along with creating an in-house network of suppliers, dramatically altering the company’s structure, and impacting its entire business model (19). In terms of Tesla’s operations, one of the most essential decisions taken by Tesla is expanding its “Gigafactory” which aims to manufacture batteries for its EVs at a cheap and most importantly rely on an in-house production strategy, so they would be able to solidify their supply chain (20). The strategic move for Tesla to open a Gigafactory in China has shown terrific success, as it will not only facilitate and optimize their production capabilities, but it will obtain immense cost reduction and exemption of labor force, tariffs, and taxes (16).
Figure 2 likely refers to a visual representation or diagram included in a study or publication authored by Slack and Jones in 2019. The figure is likely focused on illustrating the significance and impact of the operations function within a company.
Figure 2. The role and effects of operations function in a company (18).
The diagram could depict various aspects related to the operations function, including its role in the overall business strategy, its influence on the company’s performance, and its contributions to value creation and customer satisfaction.
Some potential elements may include operations function and business strategy, value chain efficiency, and effectiveness, customer satisfaction, and integration with other functions, and performance metrics. The diagram likely provides a visual representation of the critical role played by the operations function in achieving organizational goals and its impact on the overall success of the company.
Figure 3 refers to a visual representation or diagram featured in a study, authored by Slack and Lewis in 2019. It is likely designed to showcase various questions related to operations management and operations strategy, offering insights into the key areas of consideration within these domains. Some of the examples of the questions depicted in Figure 3 could include the need for the hour of the study.
Figure 3. Examples of operations management and operations strategy questions (21).
Operations management questions
How can we improve production efficiency and reduce cycle times?
What strategies can be implemented to optimize inventory levels and reduce holding costs?
How do we ensure the quality and consistency of our products or services?
What are the best practices for workforce scheduling and capacity planning?
How can we streamline supply chain operations to minimize lead times?
Operations Strategy Questions:
What market segments should we target with our products or services?
How do we differentiate ourselves from competitors through operational capabilities?
What level of automation and technology integration is suitable for our operations?
How can operations support our overall business strategy and competitive advantage?
What are the long-term goals for our operations, and how do we align resources to achieve them?
By presenting a range of questions related to operations management and operations strategy, Figure 3 offers valuable insights into the complexities and considerations involved in effectively managing operations and aligning them with the broader strategic objectives of the organization. The questions listed in the figure can serve as valuable starting points for businesses seeking to improve their operational efficiency and competitiveness.
Tesla marketing practice and strategy
Since day 1 in the market, Tesla has been unique not only in their business model but also in their marketing strategy. One of the main tools Tesla uses is authenticity in the storyboard; Elon Musk always assures to deliver the mistakes and failures of the company public without secrecy. It is highly believed that Tesla has been maintaining their competitive positioning strategies as they had already determined its targeted market and audience (22). Tesla had come up with a brilliant idea to save customers time and effort in terms of purchasing a car, which it can be ordered through Tesla’s website (23). Additionally, Tesla relies immensely on word of mouth which can be considered one of the most effective ways of marketing as it is fully trusting worthy. Also, Tesla implemented a referral program, so basically there is a unique referral code or link that comes with every either EV or solar panel system in which it can be shared with any prospective Tesla buyers, and then both the purchaser and the introducer get the arrear (24). Social media is one of the powerful tools Tesla has been using efficiently starting with its CEO Elon Musk’s Twitter account where he is famous for his controversial tweets (25). Tesla has been thinking smartly by implementing Apple’s approach of having their stores, that what Tesla has been doing is having their car showrooms where consumers can easily purchase their cars from there and avoid any hideous intermediaries that would charge more cost as a result Tesla ensures to optimize the customer experience and sustain their brand loyalty (26). Furthermore, Tesla accepts customers’ cars, trucks, vans, and SUVs for trade as an approach to purchasing new or used Teslas (27). As Tesla is considered one of the most innovative companies in the least last decade, it is always using innovative strategies to maintain sustainable growth and profit. Tesla gives a good example of creating synergy between innovations and marketing, so, eventually, marketers employ creativity as a vital component to gain fresh clients or sectors by creating a long-term competitive edge for themselves. Innovations cause transformation or upheaval within a business (28).
SWOC and main key points that add value to Tesla
SWOC analysis would be considered an essential tool for strategic planning. According to Harvard Business Review, SWOC analysis could be seen as a brainstorming tool to approach ideal strategic planning (29). SWOC analysis is a tool used to strategize a plan and to comprehend key points that are involved in a project or an organization. While taking a full picture of Tesla, it is a prosperous and thriving company in the automotive industry. They are driving innovation ahead, currently having the biggest market share and a diversified portfolio encompassing different models and products, not only EVs but also home solutions. Tesla currently owns six Gigafactories around the world (30). Currently, Tesla manufactures four different models (S, X, 3, and Y) (31). However, like any company, Tesla has its weaknesses and threats which may vary, but they are already present. The upcoming section is going to elaborate on the SWOC of Tesla to have a detailed consultancy report. The essence of SWOC analysis lies mainly in the notion that it provides self-assessment to shareholders or decision-makers. Tesla being the pioneer or first mover had given them immense credit among the consumers and had always made them step ahead of competitors. Being a pioneer in the EV market means you are the dominator. One of the great advantages Tesla offers to their customers is a direct sale; Tesla ensures that the customer has a smooth and direct transaction with their showrooms without any intermediaries being involved (26). Moreover, selling directly to consumers contribute to raising their profit margins as Tesla does not need to add any markup fees to any dealerships. Tesla has been successful in establishing a powerful network of 16,103 supercharger stations in North America, Europe, and Asia (32). When it comes to Tesla’s brand image, then this aspect has an exponential effect on car sales. There is a strong correlation between Tesla’s brand image and its CEO Elon Musk who plays a major role in establishing a huge fanbase across all industries due to exotic tweets and high interaction with people on social media, in addition to his strategic movements in the market. It can be stated that more than a normal automobile sector Tesla is an ambitious brand by itself (33). After the success made by producing the Model 3 in China’s Gigafactory, despite numerous fresh revenues, Tesla is keen to increase its physical stores across major cities in China (34). In addition, Tesla’s latest presence in Germany by opening its Gigafactory in Berlin would highly contribute to Tesla’s sales in Europe, as Europe is taking serious measures to convert toward a net-zero campaign (35). Inhouse production is considered a huge asset for Tesla as it contributes immensely to time efficiency and avoids any vendor hiccups which would slow their delivery time range which is considered a critical attribute within Tesla. Tesla has managed to have a versatile portfolio of cars with different ranges of prices to make sure to have various market segments, as Tesla has now Model (S, X, 3, and Y), Cybertruck, Tesla Semi, and Tesla Roadster vehicles. One of the main distinguished points that can add immense value to Tesla is its vision and strategy to accomplish its goals. Elon Musk’s vision was initially to produce a sport luxury car Tesla Roadster, and by selling it, then he would be able to produce more affordable cars most importantly throughout the journey being abided by their sacred target which is providing zero-emission EV for a better environment (36).
Figure 4 refers to the Tesla blog about the (Elon, 2006) Master plan that helped to analyze Tesla’s strategy. It illustrates Tesla’s strategic approach, as analyzed by Clancy in 2021. Indirectly, it provides insights into how Tesla’s strategies contribute to enhancing the organization’s value within the EV industry.
Figure 4. Tesla’s strategy (36).
The figure may encompass the aspects such as Tesla’s market positioning, product development plans, marketing initiatives, expansion strategies, or sustainability efforts. By analyzing Figure 4, the present case study explores the correlation between Tesla’s strategic decisions and the overall value creation for the organization in the competitive EV market and it indirectly offers valuable insights into Tesla’s strategic direction, which aligns with the case study’s goal of understanding how the company’s operations and marketing strategies contribute to enhancing its organizational value within the dynamic EV industry.
PESTLE and main key points that add value to Tesla
PESTEL is a strategic analysis tool used within companies and is an abbreviation for political, economic, social, technological, environmental, and legal factors. PESTEL is an analytical tool used to gauge the prospective impact of these factors on the organization’s long-term sustainability (37). PESTEL can be highly demanded during uncertain times, as it helps to predict any upcoming obstacles in the market. One of the vital points that play an important role for Tesla is the political factor. Due to immense climate change issues, world governments are taking tough measures to transform more toward EVs, as Boris Johnson UK Prime Minister had announced that all manufactured cars must be zero-emission by 2035 (38). Such legislation taken by governments would highly affect Tesla in a great way. Moreover, in the United Kingdom, the Department of Transport decided that nearly half of the newly sold cars would be fully electric (39). Within the political factor, governmental incentives play a huge role in stimulating the EV purchase; the US government had legalized tax credits for every new EV buyer (37). Furthermore, Tesla gets involved in lobbying activities as a strategy to influence policymakers to take enactments in favor of its business (37). Tesla is like any other company which can be volatile to any economic turbulences, as the EV battery’s main components are made of lithium, cobalt, and nickel which can somehow delay the concept of EVs being affordable practical, and convenient cars due to the unprecedented price surge in materials (40). Tesla’s environmental goals have been clear since day 1 which is manufacturing net-zero emission cars. Tesla is using environmental goals to leverage their brand image, and Tesla’s 2020 annual report revealed that its customers had contributed to avoiding 5 million metric tons of CO2e emissions (Anon, 2020).
Figure 5 was taken as a reference component to examine and analyze Tesla’s need for lithium for their batteries to be incorporated into the EVs, and further the statement “Tesla needs more lithium for their batteries (41)” indicates that Tesla, the EV manufacturer, has a demand for an increased supply of lithium to meet the requirements for their battery production. The information is drawn from a study or publication authored by Shankleman et al. in 2017.
Figure 5. Tesla needs more lithium for their batteries (41).
Lithium is a crucial component in the production of lithium-ion batteries, which power EVs, including Tesla’s electric cars. These batteries are essential for providing energy storage and enabling vehicles to run efficiently.
The study by Shankleman and co-authors likely explores Tesla’s growing need for a larger supply of lithium to support the expansion of their EV production. It may examine factors such as the company’s projected growth in sales, the capacity of its existing battery production facilities, and the availability of lithium resources in the market.
Additionally, the study could discuss how Tesla plans to secure a reliable and sustainable lithium supply chain. This could include exploring partnerships with lithium mining companies, potential investments in lithium extraction technologies, or sourcing strategies to mitigate any potential supply constraints.
In conclusion, the statement highlights Tesla’s requirement for an increased amount of lithium to meet the rising demand for their EV batteries, and the study likely delves into the strategies and challenges associated with achieving this goal.
Porter’s five forces analysis main key points that add value to Tesla
It is an analytical model that was developed by Michael Porter in 1985 that examines the five forces shaping the competition in an industry (37). Porter’s five can be highly used to determine where power lies in the market as it revolves around five forces and also gives insights for the decision-makers to gauge how lucrative is the industry before entering it. Porter’s model analysis can be implemented in any sector of the economy to provide a better understanding of the level of competition within the industry and boost the company’s profitability; moreover, the aim of Porter’s five is to give the decision-makers of a company a rational strategy to build or foster their defensive capabilities over competitors or secure an edge in the area where the forces are most fragile (42). Since the founding of Tesla, the EV market has never been the same as these days; the EV market has been witnessing new entrants for the past 5–10 years. Subsequently, by having new market entrants, Tesla’s market share has been changing lately. The EV market has been lucrative and attractive to many reputable automotive companies, in addition to well-established start-ups with immense funding. Tesla faces voracious competition in China as its one of the biggest consumer markets for EVs in the world, the Chinese market began to have several EV players where they have the advantages of a solid supply chain and great facilitation from the government (43). Moreover, companies based in Europe and the United States such as Ford, GM, Volvo, BMW, and Volkswagen have been expanding their EV portfolio and sales lately (43). Tesla must take an extra leap toward diversifying its products and services more to make itself ahead of companies. New entrants or competition can be seen as a double edge sword, which means that it is a fact that Tesla’s market share would be changing over the years as consumers would have more EV options. However, Tesla must take advantage of that by implementing more features that would attract consumers or sustain loyalty. Tesla is constantly implementing software updates same to the ones we have on our phones; the updates encompass a range of features such as upgrades to the backing footage, enhanced viewer dashcams, remote walkaway, advanced tuning systems, the recent AI support language, and cabin camera (44). The bargaining power of suppliers has given Tesla the edge to foster its in-house production. A persona like Elon Musk would not hinder his company’s expansion because of the supply chain or suppliers’ issues. Musk came back with a solution to avoid the bargaining power of suppliers by establishing Tesla’s Gigafactory in the United States, Asia, and Europe. This strategy has been successful as it has shortened the supply chain network massively, bought the production and market close to each other, and significantly reduced shipping costs, in addition to avoiding any supply chain disruption (43). Tesla has achieved an important milestone, as their factory in Fermont has been named the most productive auto plant in North America. Tesla is trying to fully rely on in-house production to increase the daily number of units manufactured to meet the exponential demand (Nex, 2022). Industrial rivalry adds exponential value to Tesla by solidifying its market presence in the following ways: (1) diversifying its products, services, and incentives to add more competitive advantage, (2) cutting cost waste to increase profitability, (3) innovation which is an essential key Musk is playing with, by producing high-end technology in Tesla’s cars, and (4) massive social presence which gives Tesla great competitive advantage (45).
Figure 6 refers to Tesla’s supplier components that were the need of the hour for the case study to enhance the supplier base capabilities requirements for the EVs in the future.
Figure 6. Tesla supplier components (43).
The term “Tesla Supplier Components (43)” refers to a specific topic or section in a study or publication conducted by Hadi in 2021. It likely focuses on the suppliers and components involved in the manufacturing and production processes of Tesla, the EV company.
In this context, the study may delve into various aspects related to Tesla’s supply chain, such as the selection and management of suppliers, the sourcing of critical components, and the overall impact on the company’s operations and the quality of its EVs.
The study may also explore how Tesla maintains relationships with its suppliers, ensuring a smooth flow of components to meet production demands, and how this affects the company’s ability to innovate and maintain a competitive edge in the market.
By analyzing the Tesla supplier components, the study aims to provide insights into the company’s supply chain strategies, potential risks, and opportunities for value creation and operational efficiency within the EV industry.
The 4Ps of marketing mix added value to Tesla
The notion of marketing mix came up in 1960 by Jerome McCarthy to provide marketers with a strategic framework to optimize their sales (46). The marketing mix is built and evolves around the 4Ps (47). For any organization that aims to increase its sales and identify its targeted audience, then it is a must to use the 4Ps marketing mix to achieve better results. A marketing mix enables managers to offer customers the ideal product at the right time and the right place for the right price. According to a study done by Harvard Business Review engaging more than 500 managers and consumers in various countries and industries, it has been proved that the 4Ps had led sales and marketing teams to improve the quality of products and the innovative technologies to satisfy the consumer expectations (48). The place element for Tesla is highly important, as Tesla sells its products directly to customers through a wide range of showrooms and stores in major cities. Tesla has ensured that its cars would be easily approachable without the existence of any mediators (37). Tesla’s pricing strategy is considered unique, as Tesla unified all its EV prices in the world regardless of the differences in the exchange rate and tariffs (37). One of the solid tools Tesla immensely relies on is promotion; promotion for Tesla is not an extravagant marketing campaign, but it depends on different factors such as their charismatic CEO Elon Musk and his active account on Twitter, referral programs, and social media (23). As Musk might think instead of spilling million into marketing campaigns, he would then seek other promotional techniques and raise his profit margin by saving an immense amount of money (37). People are considered a crucial element for Tesla, due to its sophisticated industrial process Tesla needs to hire and train calibers who are fully compatible with the daily manufacturing routine (47).
Tesla’s value Chain
Michael Porter during the year 1985 developed the theory on the value chain to examine the complete spectrum of eventful acts that were required to bring out the best product or service from an early stage of conception, through manufacturing, to the final delivery of products that add value to customers (49). Value chain analysis is a tool for gauging each activity in an organization’s value chain to comprehend areas that would need improvement (50). The value chain can be considered a competitive edge for greater business by optimizing the worth provided at every juncture of the network (51).
The main operations and their support make up the first two connections in the value chain. The main roles in the value chain are directly related to the production of goods and services. Primary activities in the value chain are concerned directly with the creation of products and services. Tesla’s inbound logistics encompass the storage of raw materials, energy, and solar panels. Tesla uses its massive warehouses located in five locations for storage purposes (37). Value chain as a technique seeks for finding bridges between both primary and secondary functions to gain an edge over the others (50).
Value chain analysis can provide a lucrative opportunity for companies to determine which activities may require cost reduction, effort optimization, waste elimination, and profit optimization (50). Critiques usually see value chain analysis as an endless process that would require an immense amount of time to complete; although the allegations refer that value chain analysis cannot be implemented in any business situation, it is not a static model (37).
Tesla’s operations can be divided into two parts—automotive and energy generation. The operations function is concerned with converting raw materials and energy storage into final products or services; this process includes robotic machinery, assembly lines, and constant maintenance (49). Outbound logistics can be simply described as the process of sorting, packing, and distributing. In outbound logistics, shipping orders are placed according to deliveries.
Tesla’s budget for marketing and sales is relatively low compared with other companies, as Tesla used its website along with other digital media platforms for marketing and promotion. However, the most effective tool for marketing and sales within Tesla is Elon Musk’s Twitter account where he engages with Tesla admirers, in addition to promoting his EVs freely. Moreover, Tesla has been establishing a great network of their showrooms, which are used for marketing as well as sales and services. These owned stores by Tesla are in major metropolitan markets where to ensure the high exposure of Tesla’s EV (37).
Tesla’s aftersales service has been struggling in the past due to the lack of experience; however, they had invested immensely in their aftersales services to ensure customer satisfaction and loyalty. Aftersales services could be a vital tool in contributing to Tesla’s competitive advantage, as there is no point in manufacturing the best EV without optimizing your aftersales services to be compatible with your car’s quality and cost. Tesla’s aftersales services for EVs or solar panels would encompass advice, installation, repair, customer training, and product adjustments (52).
The support activities in Porter’s value chain must have synergies together. All functions across the company must be aware of the company’s strategy and objective to acquire an edge over the others. Procurement refers to the function of purchasing raw materials, machinery, equipment, and warehouses that would need in all activities through the value chain. As procurement is concerned with purchasing raw materials, then it would highly affect the production cost and its profit margin.
At Car Tesla, the invention takes several forms, including engineering processes, innovation selection, functional architecture, constituent design, and field validation. Tesla highly relies on its production on innovation to raise its production capacity as much as possible. Tesla engages in their production process AI, 3D printing, augmented and virtual reality, robotic process automation, blockchain, and cyber security (52).
Human resource management within Tesla can be seen as immensely pivotal and crucial. Tesla is highly concerned to develop and train employees on their sophisticated innovative production line, although Tesla needs to recruit people who would be compatible with Tesla’s cultural context.
Finally, the firm infrastructure includes common strategic management, i.e., planning, finances, the accounting profession, law, and administration, along with quality control. Instead of supporting just one operation, infrastructure tries to support the entire value chain.
Because every action in the value chain is intimately connected with every other activity, decisions made in one value activity may have an impact on additional value initiatives. This is known as synergy. Synergy can create a competitive advantage in two ways—optimization and coordination.
The findings
Competitive Position and Evolution: It traced the evolution of the company’s tools and marketing strategy since its establishment in 2008, shedding light on how Tesla has adapted and evolved to stay competitive over the years.
External and Internal Challenges: The study explored the external and internal challenges currently faced by Tesla’s board and found these as challenges that include market dynamics, regulatory changes, technological advancements, supply chain issues, and organizational factors that influence Tesla’s operations and market performance.
Administration of Facilities: The study found how efficient operational management could impact production efficiency and product quality also highlighting best practices and areas for improvement within Tesla’s facilities management.
Branding Technique and Approach: The study delves into Tesla’s branding technique and approach, showcasing how the company has cultivated its brand image and enhanced customer appeal. Effective branding can contribute significantly to Tesla’s market positioning and customer loyalty.
Analytical Approaches: The article utilizes various methodologies and analytical approaches, such as SWOC analysis, Pestle analysis, Porter’s Five Forces Theory Four, and the Four Ps of marketing strategies, and business models (the value proposition network of Tesla). These analyses provide valuable insights into Tesla’s market dynamics and potential strategies for value creation.
Overall, the study comprehended understanding of Tesla’s operations and marketing strategies in the EV industry. It identifies key challenges and opportunities for enhancing organizational value, providing valuable insights for Tesla’s management and stakeholders to strengthen the company’s market position and navigate future challenges more effectively.
Recommendations
As the EV market began to expand and involve various players, Tesla must take advantage of being the pioneer, widen the gap with the competitors, and improve their supercharging station’s network across different countries to optimize customer satisfaction. One of the main points Tesla must consider is expanding in emerging markets and raising awareness of EVs over there to gain more market share. Diversifying Tesla’s market segments would be a necessity in the upcoming years to guarantee sustainable growth further based on the researchers’ perspective, the study identifies areas where Tesla should focus to enhance its brand value and address any existing flaws.
These recommendations likely encompass strategic areas for improvement, such as product development, supply chain management, marketing initiatives, or customer engagement strategies.
Conclusion
Throughout this business report, we have been introduced to new marketing analyses and models that gave me new aspects and dimensions of how to analyze a company and gain new research techniques that would highly assist in my dissertation. The fact researching about Tesla and the EV market, in general, has opened new horizons for us, and it has given us a precious update on the automotive market.
This study offers a comprehensive case study on Tesla’s operations and marketing strategies in the EV industry, aiming to explore ways to enhance organizational value. The study begins with an insightful overview of Tesla’s competitive position in the market, tracing the evolution of its tools and marketing strategies since its inception in 2008. It delves into the external and internal challenges currently faced by Tesla’s board, shedding light on the complexities of the industry.
The article is structured into three major areas, each contributing valuable insights to the overall analysis. The first examines the administration of facilities at Tesla, providing a glimpse into the company’s operational management and its impact on production efficiency and quality control.
The second explores Tesla’s branding technique and approach, elucidating the strategies that have contributed to its brand image and customer appeal. This demonstrates how effective branding can positively influence customer loyalty and market positioning.
The third delves into various methodologies and analytical approaches employed, such as SWOC analysis, Pestle analysis, Porter’s Five Forces Theory Four, and the Four Ps of marketing strategies and business models (the value proposition network of Tesla). These analyses offer a comprehensive understanding of Tesla’s market dynamics, competitive landscape, and value creation potential.
Finally, the researchers draw upon their insights to present recommendations for Tesla. By identifying key areas of focus and addressing existing flaws, the study offers actionable steps for enhancing the brand’s value and overcoming challenges. Implementing these recommendations can potentially bolster Tesla’s market position and increase its resilience in the face of future uncertainties.
Overall, this article serves as a valuable resource for understanding the intricacies of Tesla’s operations and marketing strategies in the EV industry. By highlighting opportunities for improvement and providing strategic direction, it contributes to the ongoing discourse on enhancing organizational value in a dynamic and competitive market.
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