Tesla Business Model and Challenges

This assignment examines Tesla's innovative business model in the electric vehicle industry. It analyzes Tesla's revenue generation strategies, marketing tactics (emphasizing technology over traditional advertising), and the challenges they face regarding production limitations and charging infrastructure. The document also explores the company's efforts to overcome these obstacles and their impact on primary, secondary, and tertiary sectors.

Slide 1
Tesla is an emerging company in the field of manufacturing bio-friendly automobile. It
aims at manufacturing vehicles that does not rely on fuels and has no harmful emissions into the
atmosphere, thus making it a point to control pollution from the emission of the half-burnt fuel
that is emitted by the cars that depends on fuel. Recently, Tesla has launched a new model,
which aims at production of high volume electric vehicle with a low price, which makes it more
feasible for the consumers all around the world.
Slide 2
The business model applied by Tesla is indiscriminately a different and can be considered
unique, chosen in order to make a greater emphasis on the target market. Tesla’s revenue for the
new launch of Model 3 is being provided with the earlier launches that it undertook in order to
make the recent launch a grand success. The high priced cars and the medium priced cars that the
company manufactured contributed to the revenue of the most recent launch, model 3.
Slide 3
The marketing strategy taken by the company has its own pros and cons that greatly
affect the expansion and growth of the company. The company concentrates on the criteria of
performance through technology and it prefers to eliminate the costs of traditional advertising,
making it more feasible- relating to cost, for the customers. The most essential con that the range
of cars faces is due to its incapability of charge stations. Moreover, the company faces a problem
in the distribution of its range of cars.
Slide 4
The company aims at increasing the productivity in their line of cars, but it has its own
limitations because the paint line is capable of only 25 units per hour, thus limiting the
probability of making an increase in the productivity. Moreover, the work module being a
three-shift work framework, is costing the company out off its limits and is equally frustrating
for the workers. The limitations actually hold back the company to achieve its goal of the
increase in productivity.

Slide 5
The more the productivity, the company aims at, the more are the limiting factors. To
achieve the target the company is needed to formulate steps in order to avoid the limitations and
the consequences arising out of them.
Slide 6
This slide demonstrates the measures taken by the company in not making the business
and the line of products vulnerable to the limitations due to the pros and cons in their marketing
strategy. Tesla is building a giant battery-manufacturing factory in Nevada, in order to maintain
the availability of the source of power for their line of cars.
Slide 7
The slide emphasizes mainly on the three sectors that affect the production and marketing
of the cars at large. The primary, secondary and the tertiary sector and the jobs they play actually
takes up the whole load from the production to the marketing and price distribution. It starts from
the raw materials being worked upon by the manufacturers to the finished products being
delivered to the final consumers, and the after sale services offered by the company.
Slide 8
The sector that emphasizes more on the availability of the natural resources and
supplying them to the secondary sector in order to help them develop finished goods out of the
raw materials. On the other hand, the tertiary sector concentrates on the services on which both
the primary and the secondary sectors depend.
Slide 9
Examples that clearly demonstrate the functions and interdependence of the primary,
secondary and the tertiary sector are sited here. One of the most common examples of a primary
sector is the dairy farms that provides with the dairy products, which is most probably provides
the raw materials for different companies making use of the dairy products to develop and
manufacture some chocolates and the like. On the other hand, the finance that helps in the proper
functioning of the business processes is classified under the tertiary sector. The banking, sales
and the like sectors that helps in the proper functioning of the business processes and in a lucid
manner it provides with services to the other sectors.