Strategic Management of Tesla Motors

Running head: MANAGEMENT
Strategic Management
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Introduction:....................................................................................................................................1
Question 1: Briefly Outlining Doings of Tesla and Mentioning its Corporate Level Strategy
Statement.........................................................................................................................................1
Question 2: Strategic Position, Strategic Choice and Strategic Action of Tesla.............................2
Question 3: Market’s Reaction to the Strategy of Tesla.................................................................7
Justification of the Response on the Company Strategy Based on the Following:.........................8
Growth Market Share......................................................................................................................8
Share Price Increase:........................................................................................................................8
Market Commentary:.......................................................................................................................9
Conclusion:......................................................................................................................................9
References:....................................................................................................................................10

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Introduction:
The report aims at providing a review on the Tesla Motors. It is an US based energy and
automotive company with headquarters in Palo Alto, California. Tesla Motors have been not
only viewed as an independent automaker and technology company aimed at offering the electric
cars at affordable prices to average customers1. The company also shortened its name to Tesla in
the year February 2017. The report commenced by mentioning the corporate level strategy
through articulation on how the strategy is achieved. The report also puts across the strategic
position, strategic choices and the strategies in action for Tesla. The report also outlines the
reaction the market on the strategy of Tesla.
Question 1: Briefly Outlining Doings of Tesla and Mentioning its Corporate Level Strategy
Statement
Tesla Inc initially known as the Tesla Motors and incorporated in the year 2003 develops,
manufacture, design and sell electric vehicles and storage system. The company also install,
maintain and operate solar and energy storage products and sell vehicles via its own service and
sales network..
The corporate level strategy is based on the three approaches that relates to servicing,
selling and charging of the electric vehicles2. Unlike the other manufacturers who undertake
selling through the franchised dealership, it uses the approach of the direct sales.
This strategic statement has been derived from Tesla’s strategy of entering the higher
end market where the customers are ever ready in paying a premium and then driving down the
1 tesla.com, in https://www.tesla.com/, , 2019.
2 A Karamitsios, "Open innovation in EVs: A case study of Tesla Motors", in

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market as soon as possible. The company also aimed towards providing zero emission to ensure
a move towards a solar electric economy.
Question 2: Strategic Position, Strategic Choice and Strategic Action of Tesla
Strategic Position
Strategic Position Source Result
Macro environmental
opportunities and threats
External Strategic factors Opportunities:
i. Global expansion in sales
ii. Global expansion in supply
chain
iii. Diversification of business
Threats:
i. Aggressive level of
competition
ii. Fluctuations in the prices of
material
iii. Regulations of dealership
How organization manage
industry forces
Through undertaking Porter’s
Five Forces analysis.
The five force analysis helps
the organization in
understanding the factors that
affects the profitability within
the specific industry and
thereby develops competitive