Tesla Motors- Organizational Strategy

Running head: MANAGEMENT
Tesla Motors- Organizational Strategy
Name of the Student:
Name of the University:
Author Note:

1MANAGEMENT
Executive Summary:
The report aims at providing an overview of management by throwing a light on the
organizational strategy of Tesla Motors, known for the manufacture of the electronic car and the
solar panels. The report throws a light on the past, present and the future strategy of Tesla
motors. As far as the past strategies are concerned the report throws a light on the generic and
intensive strategy of the Tesla Motors. The report even throws a light on the differentiation,
market penetration and the diversification strategy of Tesla Motors. Through the report one can
also get an overview as to how the company adopts its future strategy to concentrate on the
aspect of innovation.

2MANAGEMENT
Table of Contents
Introduction:....................................................................................................................................3
Organizational Strategy of Tesla Motors:........................................................................................3
Past Strategy:................................................................................................................................4
Present Strategy............................................................................................................................5
Future Strategy:............................................................................................................................7
Conclusion:......................................................................................................................................8

3MANAGEMENT
Introduction:
The report aims at providing an insight into the past, present and the future of the
organizational strategy of Tesla Motors (tesla.com 2019). The company was found by engineers
Marc Tapenning and Martin Eberhard in the year 2003 and is located in California. The company
has expertise in the manufacture of the electric car and solar panel. The company is known for its
multiple assembly and production plants. According to the reports of the year June 2018, Tesla
sold Model S, Model 3, Model X, Powerpack and Powerwall batteries, solar roof tiles and solar
panels. The company ranked as the worlds’ best in selling the plug in passenger car in terms of
both the automotive group and the brand. The company had a market share of close to 12 percent
in the segment of plug in sales. The vehicle sales of Tesla rose from 48,000 in the year 2017 to
close to 182,400 in the year 2018 in the United States. This represented a hike of close to 138
percent from the year 2017.
Organizational Strategy of Tesla Motors:
An organizational strategy represents sum total of actions that a company intend in taking
for achieving the long term goals (Benn, Edwards and Williams 2014). Altogether, such actions
define the strategic plan of the company. A strategic plan takes a year to get completed and
ensures the involvement at all the company levels. The key purpose of the organizational
strategies remains in connecting the key areas that defines the purpose of the business.
Organizational strategy is vital for the organization since it puts across sense of direction thereby
outlining the measurable goals. Thus, strategic planning acts as a useful tool for guiding the day
to day decisions while evaluating the progress and changing the approaches while moving
forward (Grant 2016).