Strategy Implementation Of TESLA

Presented By
• INTRODUCTION
• VISION & MISSION
• STRATERGY IMPLIMENTATION
TESLA COMPANY REVIEW
INTRODUCTION

• Much more than just an electric car manufacturer

• Tesla Motors’ share price increased
331.29 USD +2.37 (0.72%)
• . Its price to sales ratio is more than 6 while those of
traditional carmakers are less than 0.5. Tesla is not a
simple electric vehicle designer and manufacturer,
just as Apple was not simply a PC brand in 2000 and
was not just an mp3 producer in 2001. Comparing
Tesla to other car manufacturers is like comparing
Apple to IBM.
Elon Musk, the man behind the story, really does “think
differently”
• Money is not the problem Nothing is impossible,
• Until it really is Nothing is too far from the core business as
long as it serves it Acceleration is the key,
• At almost any price or level of risk Goal delivery date is
just a management fundraising trick Late is meaningless as
long as you deliver a tremendously good product If the
market is not there yet, create it
Due to the infancy of the EV2 market, Tesla’s strategy is
to push across all fields:
• Software: proprietary vehicle autopilot technology
• Energy: battery production and sales (Gigafactory)
• Recharging infrastructure: worldwide supercharger
• network Services: from vehicle after sale service to
Tesla Mobility, the “P to P taxi service
Vision Statement
“To create the most compelling car company of the
21st century by driving the world’s transition to
electric vehicles.”

Mission Statement
“To accelerate the world’s transition to sustainable
energy.”
 MARKET, ASSETS & PRODUCTS:
STRATEGY
1. Supercharger network
2. Price/range ratio and battery technology
3. Top down strategy
4. EV focused and market momentum
5. Open Source patents
6. Partnerships
7. Sales strategy
 Tesla, Inc.’s Generic Strategy &
Intensive Growth Strategies (Analysis)
• Michael Porter’s generic strategies are used to develop and maintain firms’
competitive advantage.
• Tesla’s major competitive advantages: Success story of any organization is
additionally analyzed by market experts and the public. As per scrutiny at different
levels, it is indisputable that Tesla has offered a next level solution for vehicle,
consumers seeking an alternative to traditional gas-powered options. Tesla’s
competitive advantages over competitors can be clearly understood by following
points where few points are tangible in nature and few points are intangible.
• Self-reliance on core competencies: TESLA is focused on their mission and vision
and since battery is big part of Tesla’s advantage so that rather than depending on
some other vendors they are building their own battery supply chain (and may be for
some loyal friends such as Mercedes)
➢ Battery packs of Tesla are cheaper than other EV batteries available in the market
➢ Tesla has approach to continuously improve the efficiency of batteries and its
production unit Gigafactory is focused on scaling up production of batteries, which
is an important side of advantage over other competitors.
➢ Supply chain management of TESLA is excellent in class, they collect their
resources in very efficient manner than its competitors.
• BCG Matrix in the marketing strategy of Tesla
• The model S cars can belong to the STAR for TESLA
• The model 3 cars can belong to the QUESTION MARK for TESLA
• The ZEV credits or Zero Emission Vehicle credits can belong to the
CASH COW for TESLA
• The model X cars can belong to the DOG for TESLA
Competitive advantage in the marketing strategy of Tesla
:-
1) Driven by Technology:
More than an automotive company, Tesla is a technology company building
technology platforms. Betting on Tesla technology is betting on new
technology. The company not only sells cars but has also built the
infrastructure necessary to support the operation of those cars. It has built
the network of superchargers, battery swap stations, and service stations.

3) Diversifying its business:

Tesla seems to be diversifying its business and entering into the market of
Solar roof tiles as it complements with the business of rechargeable lithium-
ion battery which provides homes with the storage of solar captured energy.
2) Tesla’s reputation:
Tesla’s Roadster transformed the image of electronic vehicles from small slow
vehicles, into blindingly fast vehicles of desire. It provided an acceleration with
a 0 to 60 mph that could beat superior cars. Tesla then produced the cheaper
Model S sedan that ended up winning just about every big auto award. With the
reputation for excellence, it has created an impressive brand image.
Distribution strategy in the marketing strategy of Tesla :
Tesla mostly uses online sales model coupled with company-owned stores to
sell its cars and doesn’t use the conventional dealer network. The company
owned distribution is fraught with several challenges. The substantial amount of
money is set up for a distribution channel.
Other manufacturers including Ford and general motors team up with the third
party to sell their vehicles. For Tesla, the brick-and-mortar store serves as a
channel to sell the concept of EV as well. Selling the vehicles online has
reduced the company’s selling cost. The physical stores only serve as a
showroom for Tesla. It has around 17 stores worldwide to sell its cars which
according to Tesla helps to interact with potential customers.
 CHALLENGES RECOMMENDATION

1. Production capacity to meet spikes of  Ensure GIGAFACTORY construction is on

increased demand such as model 3 and time and also partner with other car
model X requests. maskers to produce the cars

2.Limited store and no store because of  Establish partnership models, outsource

tesla’s ownership of the distribution store opening activities
network

3. Provide enough supercharger network  Partners with local fuel stations to

to meet consumer travel requirements operate tesla’s supercharge in semi
worldwide. partnership model