Improving Performance & Profitability: Tesla vs Toyota

This assignment delves into the performance analysis of Tesla and Toyota, focusing on their revenue generation strategies, innovation processes, customer focus, financial resources management, asset utilization, and overall profitability. It emphasizes the importance of high-quality products/services delivery to maintain brand image and market competitiveness.

Critically review two
academic business
articles.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
RECOMMENDATION...................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES ...............................................................................................................................5

INTRODUCTION
The product and services plays effective role in order to determine the performance of
the company. With the help of this market can grow their activities in large manner. The
profitability graph of company should be impressive in this manner the firm can able to maintain
its brand image in market. In this present report activities of two enterprise are considered are as
Tesla and Toyota (Liu and Meng, 2017). The main objective of both of the firm is to deliver the
high quality of product and services to its customer in the market. It is one of the most
innovative company which always focuses on the attractive design and features in the auto
mobile. The assignment has included various aspects like the quality standards of product of
both of the business enterprises. The revenue position of t eh companies and its various factors.
To take effective analysis the two articles are given in order to get information about the both of
the firms. The major effectiveness of the cited venture is that it always focused on the customer
demand and requirement related to the auto mobile product in the market. It has strong market
research through which it can diagnose the existing demand of the customer related to the auto
mobile products. The company offers the wide range of the equipment of the auto mobile which
deliver effective satisfaction level to the customers.
MAIN BODY
Tesla is the automatic start up which have main objective is to deliver the high quality of
product and services to its customer in the market. It is one of the most innovative company
which always focuses on the attractive design and features in the auto mobile. It effectively
serves its business and deliver high quality of services to its customer in the market. In the
present time, company is gaining the 14 years old start up valuation to over $53 billions. The
major effectiveness of the cited venture is that it always focused on the customer demand and
requirement related to the auto mobile product in the market (Liu and Meng, 2017). It has strong
market research through which it can diagnose the existing demand of the customer related to the
auto mobile products. As per the research it has been founded that cited venture is currently
almost $1 billion in debt and on the Monday last week tesla announced plans to borrow an
additional $1.5 billion to escape what muck calls the manufacturing hell. The company offers
the wide range of the equipment of the auto mobile which deliver effective satisfaction level to
the customers. However, in the case of the Toyota, it is new energy vehicle analysed company.
This is also provided the high quality of the automotive product to its customers. Cited venture
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also adopted innovative symbiosis strategy that by use of effective resources of the global
relevant enterprises. Cited venture make optimized configuration in the global and cited venture
also adopted the competitive strategy through which it can distinguish its product and services as
compare to its competitors in the market. In this case, excellent ecogiocal environment of
innovation, product innovation is formed by a purity of core technologies capture gather after the
adoption of platform for product resources. The basic strategy of Toyota is as compare with
Tesla is that it adopted the competitive pricing strategy under which it sale its product in the
competitive prices as compare to its rivals. On the other hand in the context of Tesla it does not
adopt the competitive pricing strategy along with its product and services thus it can be said that
its performance is quite less as compare to the Toyata Plc. Tesla is also not comparable to netflix
as netflix distributed the video rental market at least twice in 2007.Cited venture existing battery
technologies are cheaper as compare to the other organisation. Cited venture may well deliver all
the 500000 pre ordered model by the end of 2018.Thus, from the both companies performance
and information it can be said that Toyota company have adopted an effective innovation
practices through which it delivers more high quality of services and product to the customer in
the market (Downes and Nunes, 2017). On the other hand as per the research it has been also
founded that Tesla is wildly innovative company but currently company have almost $10 billion
in debt. IT is huge requirement to improve its existing performance as compare to the Toyota
company. The main aim of both of the firm is to full fill the demand of the customers so that
business enterprise is able to earn large amount of profitability and productivity (Chang, 2016).
This is analysed that in Tesla there is lack assets as there is high opportunity cost is charge due to
this firm is unable to generate large volume of assets. It is also ascertained that company is also
having heigh end and heigh margin product it is unable to have sufficient amount of resources.
In this manner the effective steps is to be take in order to make the brand image of company
strong (Innovation Model Analysis of New Energy Vehicles: Taking Toyota, Tesla and BYD as
an Example. 2017). The basic strategy of Toyota is as compare with Tesla is that it adopted the
competitive pricing strategy under which it sale its product in the competitive prices as compare
to its rivals. With the help of this kind of strategy firm is able to take innovation process, in this
manner various kind of customers are get attracted towards the firm. In Tesla the consumer are
main stakeholder of the company. The profitability of the company can be derive from them
only. The Toyota has adopted innovated symbiosis strategy in order to attract the customer in
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large manner. The firm is taking various effective step in order to analyse the need of the
customers in large manner. This kind of activities is very help to maintain the brand image of
company. After taking effective analysation on each this it can be noticed that from the both
companies performance and profitability of this firm is far better. The Toyota company have
adopted an effective innovation practices through which it delivers more high quality of services
and product to the customer in the market. This kind of activities is very help to enhance the
revenue and brand position of business enterprise. It can be noticed that Tesla in a better
environment for innovation process in the world and it is taking various effective steps in order
to standing on the forefront of technology innovation environment, quick disruptive innovation,
the first to lead the high (Downes and Nunes, 2017). The heigh innovative products help the
company to survive in the market for longer period. The Toyota is taking various kind of
technology up-gradation in this manner there is need to provide effective training facility to the
customer so that they can get attract towards the firm and able to take various innovation
methods this kind of services plays effective role in order to enhance the brand image of
company. With the help of expert and effective training firm is able to serve better to the
employees. This kind of feature of the business enterprise work as to succeed the organisation.
The technology can change at any time in this manner the firm need to maintain various
adequate amount of financial resources in order to get cope up with it (Collis and Hussey, 2013).
RECOMMENDATION
In order to make performance of both companies better the various things are to be
considered it is defined in following manner are as-
 The both company should use effective strategies in order to earn large amount of
revenue.
 The innovation process is to be taken in effective manner so that brand image of
company can be improved (Christensen, 2017).
 The main objective of both of the firm should be to deliver the high quality of product
and services to its customer in the market.
 The both firm need to have adequate amount of financial resources with the help of this
company can easily cope up with change.
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 The assest of the firm should be in better manner so that it can help in manner to reflect
the profitability position of the business enterprise.
CONCLUSION
From the above report it has been concluded the performance of both company are as
Tesla and Toyota are to be focused. The product and services plays effective role in order to
determine the performance of the company. The profitability graph of company should be
impressive in this manner the firm can able to maintain its brand image in market. The main
objective of both of the firm is to deliver the high quality of product and services to its customer
in the market. To take effective analysis the two articles are given in order to get information
about the both of the firms. The major effectiveness of the cited venture is that it always focused
on the customer demand and requirement related to the auto mobile product in the market.
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REFERENCES
Journal & Book
Chang, J.F., 2016. Business process management systems: strategy and implementation. CRC
Press.
Christensen, C.M., 2017. How Will You Measure Your Life?(Harvard Business Review
Classics). Harvard Business Review Press.
Collis, J. and Hussey, R., 2013. Business research: A practical guide for undergraduate and
postgraduate students. Palgrave macmillan.
Downes, L. and Nunes, P. 2017. Is Tesla Really a Disruptor? (And Why the Answer Matters).
Harvard Business Review. 16 August 2017 issue.
Liu, J, and Meng, Z, 2017. Innovation model analysis of new energy vehicles: taking Toyota,
Tesla and BYD as an example. Procedia Engineering. pp.174 (2017) 965-972.
Online
Innovation Model Analysis of New Energy Vehicles: Taking Toyota, Tesla and BYD as an
Example. 2017 [online].<:https://www.infona.pl/resource/bwmeta1.element.elsevier-
efdfa103-a26f-369a-8558-5f66a8e14c26>. [Accessed on 25th October, 2017]
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