Tesla Motors: Innovative Energy Management & Automotive Engineering - Essay Sample

Paper Type:  Essay
Pages:  7
Wordcount:  1797 Words
Date:  2023-05-02

Introduction

Tesla motors is a modern company in which its operations involves storing of energy and automotive engineering. The company basically manufactures and designs a wide range of automotive electrical systems and products for energy storage for use in commercial areas, homes, and other facilities. The firm is hugely inclined to using energy management technologies and processes, which has contributed significantly to its product marketability. This paper seeks to assess how various factors, specifically the PEST, are likely to influence the Tesla Motors performance.

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PEST Analysis for the Global Automobile Industry and Tesla Motors

PEST involves political, economic, social, and technological factors. Political factors can have either a direct or indirect impact on the Tesla motors. Political factors such as taxation can have a direct influence on Tesla motors in terms of the cost of doing business. For instance, an increase in the taxation of the firm will have the same effect on the expenses expansion and affect business profitability. The economic factors are one of the most crucial PEST analysis and affect Tesla in many ways, such as G.D.P. and inflation (BIRK, 2015). G.D.P. has a direct effect on the general appeal and profitability of Tesla motors. When the G.D.P. is high, there is an increase in disposable income, which in turn results in higher sales for the company. Inflation on the other hand disintegrates the purchasing power of the shoppers and the customers. High inflation will have an adverse effect on the cost of raw materials and other inputs that are used by Tesla. In social factors, influences stems from social components of the macro environment for instance, consumer behavior and social patterns. The evaluation of social patterns helps the company to reposition its administrations and items in order to meet the changing needs and desires of the consumers. A company such as Tesla motors is anticipated to be more consumer-centric rather than product-centric (Paul Nieuwenhuis & Wells, 2015). Moreover, consumer grouping and market segmentation are moving towards measures of lifestyles and psychographics to understand the customers more. Lastly, technology factors affects Tesla motors in a number of ways such as social media. Tesla can use social media to reach its target market audience more efficiently and more so, interact with its consumers about the products and area of improvements. Besides, technology can improve the company value chain network. As a result, Tesla will incorporate improvement in product quality, improved marketing, improved access to clients, less expensive production and increased levels of business intelligence than the competition

Stakeholder Analysis for Tesla Motors

During the early years of Tesla, the company was much dependent on the stakeholders. These stakeholders are essential for the cash flow and capitalization of the company. They are more concerned about the growth and profitability of the business. The most crucial stakeholders that determines the success of Tesla Motors is the customers who are categorized in the industry level stakeholders (Niedermeyer, 2019). Consumers refers to the buying population are the highest priority stakeholders since without people of buying its products, there is little or no reason for the company to exist. The customers have a direct influence on Tesla's income and are more concerned about the product qualities and the pricing levels (Shrivastava, 2010). To influence this stakeholder, Tesla is trying to reduce the batteries in their motors to decrease the overall cost of the finished product. Thus, the company rather than buying its batteries from Panasonic, Tesla Motors is attempting to create a production of its own batteries hence cutting off some prices and eventually making the cars more affordable to the people. Besides, one of the primary objectives of the company currently is widening the charging stations network all over the world (Lu, 2020). This strategy would boost the overall service quality and customer satisfaction. This ensures that Tesla Motors satisfies the concerns of its customers as a stakeholder group. Another approach that will influence the customers is establishing a leasing company which will be a wholly-owned subsidiary that will be providing the consumers with a leasing alternative. The owners are the next essential stakeholders who act as prime shareholders. The owners include the C.E.O. of Tesla Motors, Elon Musk, who owns in the region of 38.6 million shares, Jeffrey Straubel, who is the co-founder and C.T.O. of the company, possesses 306398 shares. Also, Deepak Ahuja, a former C.F.O. of Tesla, owns 25015 shares of the company directly, and through a family trust, he has additional 38789 shares indirectly (Nickolas, 2019). Other indirect owners are Daimler who bought around 10 percent worth $50 million of Tesla equity stake. On the other hand, Toyota bought nearly 3 percent of the company stock. To influence these stakeholders, the company should come up with a development program for elite cars such as a new Mercedes Benz car having full Tesla powertrain. Moreover, the strategy should involve furthering its partnership by giving out parts of powering other electrical version vehicles such as the RAV4 or Toyota crossover S.U.V.

The next set of crucial stakeholders is the suppliers who are ordered in the industry level stakeholders. The most fundamental supplier of Tesla motors is Panasonic (Zimmer, 2013). This group of stakeholders is vital since it is crucial in producing a product that is used in another product that Tesla motors are selling. Panasonic combines its experience in battery technology to offer Tesla motors with a product necessary for its electric powertrain development. This is crucial to the success of the company since consumers want a product that will last. Because Panasonic has numerous years of experience in the production of excellent batteries, the company should continue partnering with them. To keep Panasonic, Tesla Motors should come up with a strategy of giving them an offer of letting the company be the sole supplier of all its electric car battery needs (Perrini, Russo, Tencati, & Vurro, 2011). I believe this strategy will influence this group of stakeholders. The last relevant stakeholders are the employees. Employees working for Tesla motors are an essential factor for the business. They affect the productivity and performance of the company. Due to this reason, it is necessary for Tesla motors to accommodate and increase the level of satisfaction of the employees. One strategy of influencing these stakeholders is by providing them with a competitive compensation package together with a special training program that will give the employees with new opportunities for growth and advancement.

External Situational Analysis of "Apple (in 2013): How to Sustain a Competitive Advantage

Porters Five Analysis

The first Porter's force is the threat of new entrants. The present exceptional competition level that is being experienced in the mobile industry and P.C. makes it a big challenge for prospective rivals to infiltrate the market. Different from many corporations, Apple Inc. has secured its customers loyalty to its brand by putting more emphasis on the product development, research and invention (Pratap, 2019). Furthermore, the company has fortified its loyalty brand through having an emotional attachment with its consumers through taking up the internet and social media to portray what the business is believing in contrast to what the corporation is doing. The other Porters force is bargaining power of buyers. The bargaining power in this kind of market Apple is operating on, is minimal because of the demand from customers regarding the surfacing products. Customers have the will to buy at retail prices since they want the products and hence it is close to impossible to affect Apple in reducing its prices because of its products diversity over rivals. Product diversity is the primary reason that makes Apple to charge high prices in comparison to its rival companies such as Dell and Nokia who have slashed prices as a result of the intense competition within the industry (Dudovskiy, 2019). Also, another reason for having a low buyer bargaining power is the high cost of switching for the consumers because of the changes in hardware or software. Nevertheless, Apple ought to put into consideration how substitute products from competitors are readily available, and if customers will ultimately turn to them because of their lower prices hence providing Apple's customers with high bargaining power. However, Apple is being misplaced by Dell in the supply of products to educational institutions since it has safer windows and easy to use compared to the IOS offered by Apple.

The other Porter force to consider is the bargaining power of suppliers. Apple has a resilient bargaining power of suppliers because it can outsource most of its manufacturing components. Besides, the company has empowered in order to integrate vertically, thus indicating that it can produce some of its supplies (Rothaermel, 2013). The vertical integration has improved the company with huge advantages over its rivals in the market because the strategy works through reducing cost while at the same time, surging resources. Currently, in the globe, there is continuous technological advancement. Hence, there is little or no substitutes in this kind of market because of the need for high tech features. Nonetheless, the presence of alternatives is distinguished as a result of competitors. Hence, if some other companies such as Microsoft, Google, Samsung, or Blackberry advance its innovative technology and come up with a gadget at the same price and with advanced features, it will be a looming problem for Apple Inc. Gharajedaghi (2006) illustrated that the company proactively avoids Gharajedaghi counter-force of inertia by coming up with new innovative products to counteract the substitutes for its previous product issued by its competitors.

Blue ocean strategy helps a company to manage its business portfolio at a corporate level. This strategy helped Apple to deal with problems of new entry or any effective substitute competition. Besides, Apple was able to create growth and future profits not through exploiting resent demand but through reconstructing the business boundaries by forming new market space and unraveling latent demand (Porter & Kramer, 2006). Hence, the value of the firm nurtured exponentially since the aggregate market value of the company does not merely reflect current performance but as well as forthcoming profitability. The blue ocean strategies transformed Apple from once a P.C. maker that was an unattractive industry to a global electronic industry (Kim & Mauborgne, 2015). Apple made a series of blue ocean strategic moves such as iPad, iPhone, iTunes, and iPod, which made it attain sustained profitable growth. Apple eliminated the threat of new entry by creating and capturing its own lucrative market. The blue ocean strategies have helped Apple to redefine the industry boundaries and creating unchallenged market space continuously. Besides, its services and products are often focused on relishing consumers and making them a crucial part of its success (Zenger, 2013). Without Steve Jobs, the charismatic founder of Apple, blue ocean strategy will help the company to go on in its journey of making innovative services...

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Tesla Motors: Innovative Energy Management & Automotive Engineering - Essay Sample. (2023, May 02). Retrieved from https://proessays.net/essays/tesla-motors-innovative-energy-management-automotive-engineering-essay-sample

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