Dynamic strategy and disruptive innovation of Tesla Motors

This study delves into the dynamic strategy and disruptive innovation of Tesla Motors. It provides insights into their mission, vision, recent developments, challenges, and stakeholder analysis. The study also recommends strategic programs for employees, customers, investors, shareholders, and governmental agencies.

Running head: MARKETING
Dynamic strategy and disruptive innovation of Tesla Motors
Name of the student:
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Executive summary
Managing the operations is necessary in terms of ensuring its effectiveness according to the
identified and the specified requirements. Strategic approach in regulating the activities is
fruitful in terms of achieving positive outcomes. Stakeholders are crucial for all the
companies and organizations, which, the reports maps in the perspective of Tesla Motors.
Recommendation is proposed towards adopting social media marketing, which would be
beneficial in terms of conducting the offshore marketing. This approach would be productive
in terms of strengthening the customer base. Uploading the information of the newly
launched electric cars on the social media would support Tesla for increasing the trafficking
of the audience towards the brand image. However, if the focus is placed on community
development, the mission and vision of achieving sustainable development would be
achieved in the true sense. Functional organizational structure is highly recommended for
exposing dedication, commitment and perseverance towards the marketing activities.

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Table of contents
Introduction................................................................................................................................3
Insight into Tesla Motors...........................................................................................................3
Mission and vision statement.................................................................................................3
Mission...............................................................................................................................3
Vision.................................................................................................................................4
Recent developments.........................................................................................................4
Challenges..........................................................................................................................4
Stakeholder view of Tesla..........................................................................................................4
Stakeholder analysis...................................................................................................................6
Generic strategic programs for the selected stakeholders..........................................................9
Strategic programs for employees..........................................................................................9
Strategic programs for the customers...................................................................................10
Strategic programs for investors and shareholders..............................................................10
Strategic programs for the governmental agencies..............................................................11
Strategic programs for the community people.....................................................................11
Recommended strategic programs...........................................................................................12
Strategic programs for the community people.....................................................................12
Strategic programs for the governmental agencies..............................................................12
Strategic programs for the shareholders and investors........................................................12
Strategic program for the customers....................................................................................13
Strategic programs for the employees..................................................................................13
Conclusion................................................................................................................................13
References................................................................................................................................14

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Introduction
Marketing the products and services adds value to the strategies and plans of the
sellers. Strategic approach towards the marketing activities is assistance in terms of achieving
positive outcomes. In this, mention can be made of marketing mix, which acts as an agent in
terms of identifying the target audience. This identification results in the generation of
customer oriented business, contributing to the increase in the sales revenue and the profit
margin. Strategic programs for the stakeholders are a means for gaining an insight into their
specific needs, demands and requirements (Noe et al. 2017). This report attempts to conduct a
stakeholder analysis of Tesla Motors, followed by the creation of a strategy development
report.
Insight into Tesla Motors
Since its launch in 2003, Tesla Motors has been serving the clients and the customers
as America’s reputed automotive and energy based company. Operating as a public sector
company, under Automotive Industry, the company has emerged successful in generating
annual revenue of US$ 21.461 billion (Tesla.com 2019).
Mission and vision statement
Mission
The mission of Tesla relates to the achievement of sustainable development through
acceleration of the automobiles and alter the dynamics of the business operations. According
to the recent report, the mission is the generation of sustainable energy for enhancing the
standards and quality of the automobiles.

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Vision
Tesla Motors envisions the introduction of electrical vehicles, which is an innovative
approach towards reducing the environmental pollution (Tesla.com 2019).
Recent developments
According to the statements of Elon Musk, the driven dreamer, the recent trend to
which Tesla has offered acceptance is that of electric cars (Youtube.com 2019). The major
drive behind this is the plan of securing the future of the business through the means of long
term sustainability. He cites the example of the drive, which he took in Las Vegas in the
Model S, where switching on the Autopilot results in the automatic steering at a constant
speed until the lane is changed through the flipping of the indicator.
Challenges
Absence of a competitive model line-up is one of the major challenges for Tesla
Motors. The first three contenders are crossovers, aggravating the complexities in
competitive rivalry. As a matter of specification, the model X is equipped with the battery of
75 kWh with the capability range of about 380 km (EPA) (Tesla.com 2019). Along with this,
mention can be made of the federal EV tax credit, which is $7500 and available only until the
end of each quarter. In one of the quarters, Tesla generated the 200000th sale. As a result of
this, the tax credit is halved in another of the two quarters, which totals up to $3750. After
this, it is again halved to $1875, which is consistent until the collapse.
Stakeholder view of Tesla
Corporate social responsibility is the main motto of Tesla Motors for the achievement
of large scale customer satisfaction. This helps in catering to the mutual interests and benefits
of the stakeholders in a legal manner. As a matter of the specification, the stakeholders of

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Tesla Motors are: Communities (highest priority), customers, employees, investors\
shareholders and government agencies. As per the arguments of Herremans, Nazari and
Mahmoudian (2016), Archie.B.Carrol’s model is applicable in this case for seeking an insight
into the approach of Tesla towards fulfilling the specific needs, demands and requirements of
the customers. On the contrary, social contract theory is the most appriopriate one in terms of
mapping the interaction of the social and the economic parameters for fulfilling the needs of
the stakeholders. Within this, mention can be made of the 3c model, which helps Tesla to
maintain fair competition with the contemporaries for fulfilling the targets.
Figure 1: Stakeholders of Tesla Motors
(Source: Dorobantu et al. 2018)
Tesla
Inc
Communities
Customers
EmployeesInvestors\shareholders
Government

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Stakeholder management techniques acts assistance for Tesla Motors regarding
enhancing the parameter of customer relationship management. Typical evidence of this lies
in the suggestions and feedbacks relating to the innovations within the outer appearance of
the electric cars. Within this, reference can be cited of the risk assessment exercise, which
helps in gaining awareness about the potential risks, which hampers the smooth functioning
of the business operations. In case of the hybrid cars, oil and spark plugs are not used,
reflecting the need for lessser maintenance. One of the challenges in this the regular oil
changes and spark plug replacement. Commonality of this car results in the benefits from
servicing of the engines.
According to the recent business trends, the aim of Tesla Motors is sustainable energy
development. In this, the main focus is on influencing the power and authority of the
manufacturers and producers, General Motors Company, Toyota Motor Corporation, Honda
Motor Company, Volkswagen, Nissan Motor and BMW (Tesla.com 2019). Infusing scientific
management into the businesses helps in generating systematic approach towards the
business. Journey mapping is executed for assessing the impact of the smoke emissions on
the environment as a whole.
Stakeholder analysis
In the process of catering to the needs, demands and requirements of the stakeholders,
Tesla Motors exposes conscious approach towards preserving the traditional values. This
approach proves beneficial in terms of achieving trust, loyalty and dependence from the
stakeholders. For this, stakeholder mapping is conducted in terms of gaining an insight into
the prospective customers, who would contribute towards increasing the sales revenue and
the profit margin. After identifying the stakeholders, planning is constructed for generating
strategic programs. Voegtlin and Greenwood (2016) makes mention of the aspects of

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competitive threat, cooperative potential and actual behaviour, which are crucial for reaching
to the specific needs, demands and requirements of the stakeholders.
In case of the competitive threat, the activity of the risk assessment gains an important
position in the business operations in case of Tesla. This assessment compels the company to
encounter a downmarket scenario due to the instances of heavy tax obligations on the import
and export of the engines in the cars. Collecting suggestions and feedbacks from the
stakeholders is an agent in terms of assessing the feasibility of the strategies in terms of the
constructed plans and strategies. This approach is an attempt to unleash the potentials, which
can help in enhancing the cooperation towards the needs of the stakeholders. Rating the
approach of the stakeholders towards the levied plans is effective in terms of seeking an
insight into their mindset (Welford 2016).
Fig 2- Range of possible behaviour
(Source- Sánchez 2015)
These behaviours leads to the segmentation of the stakeholders under the following
categories:
 Swing (high cooperative potential and high competitive threat)
 Defensive (low cooperative potential and high competitive threat)
 Offensive (high cooperative potential and low competitive threat)
Competitive threat
Actual behavior
Cooperative potential

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 Hold (low cooperative potential and low competitive threat)
Non-reactive approach is adopted by Tesla in terms of maximizing the potential for
overcoming the threats. Stabilizing the market position relates to the act of exposing non-
reactive approach to the marketing activities. In this context, Kull, Mena and Korschun
(2016) makes mention of the plans regarding charity and fundraising events for community
development. Typical evidence of this lies in the greener tests drives and the eco-friendly
cars, where the smoke emission level is measured for reducing the pollution levels.
Customers are a vital stakeholder for Tesla Motors. Low operational costs help the
company to attract more customers. Manufacturing the electric cars, according to the
suggestion of the customers is assistance in terms of providing a valuable experience to the
customers. Employees are accounted as internal stakeholders, who assist in the formulation of
strategies for manufacturing the electric vehicles. Participative management and leadership
style is practiced by Tesla in terms of unleashing the potential capabilities of the employees.
Typical evidence of this lies in the career enhancement plans. HR programs is assistance in
terms of disseminating exact information to the employees regarding the workplace culture.
Strategic alliance with neighbouring associate firms is assistance in terms of organizing
quality training programs for the employees. According to the arguments of Schnackenberg
and Tomlinson (2016), the employees are inspired to take part in group discussions, which
reduces the knowledge gaps.
Investors and shareholders are involved in the decisions towards the expanding the
scope and arena of the capital margin. Providing access regarding the technological patents is
assistance in terms of systematizing the approach towards dealing with the business
operations. Mention can be made of the offshore marketing, which helps in expanding the
scope and arena of the marketing. According to socio-cultural trends, reference can be cited

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of the charity and fundraising events, which are organized in the workplace premises.
Governmental agencies intervene into the business operations of Tesla Motors, which helps
in conducting quality controls and tests for the manufactured electric cars. Garcia‐Castro and
Aguilera (2015) opines that this intervention acts as an agent in terms of gaining an insight
into the latest versions of the legislative requirements, which helps in enhancing the standards
and quality of the sustainable reporting. Reference can be cited of complying with the rules
and regulations regarding supply chain management. Strategic approach in this direction is
prioritization of the stakeholders according to their needs, which are as follows:
 Offensive- employees
 Hold- consumers, shareholders
 Defensive- governmental agencies
 Swing- investors and communities
Generic strategic programs for the selected
stakeholders
Strategic programs for employees
Tesla Motors need to be applauded for exposing ethical conduct in terms of
convincing the employees regarding accepting the proposed changes. As a matter of
specification, the programs includes hiring the lobbying lawmakers for proper formulation of
the changes. This is done through the means of open forums and discussions, which acts
assistance for assessing the feasibility of the plan of introducing the electric cars in the
ambience of competition and changed customer preferences (Hanson et al. 2016). This
method seems effective in terms of unleashing the thinking skills and judgmental capacities
of the employees. One of the noteworthy facts is strategic alliances with the Federal
Government for gaining an insight into the ways and means of formulating health insurances

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and safety policies. Mention can be made of the consideration of Foreign exchange trading
model, which enhances the parameter of customer relationship management in the
competition. One to one sessions are conducted in terms of seeking an insight into the issues,
which the employees are facing while executing the allocated duties and responsibilities.
Strategic programs for the customers
Revising the existing strategic programs helps Tesla Motors to attract the customers.
This approach is beneficial in terms of convincing the customers towards the proposed plans
and strategies. Eskerod, Huemann and Ringhofer (2015) cites the reference of the joint
ventures with the suppliers, which is an attempt towards influencing the purchasing decisions
and power of the customers. Behavioural analysis is conducted in terms of assessing the
approaches of the customers towards the levied strategies and plans. This analysis is
assistance in terms of detecting the deviant behaviours, which can hamper the productivity.
Along with this, contract management plans is also performed by Tesla in terms of regulating
the contracts, deals, trades and legislative requirements. Organizing cultural shows relates to
the attempts of catering to the entertainment needs of the customers. Mention can also be
made of the talk shows, which disseminates the necessary information about the marketing
strategies to the customers. Within this, Cooper (2017) argues that conscious approach
towards preservation of the traditional conscious values helps Tesla to gain trust, loyalty and
dependence from the customers.
Strategic programs for investors and shareholders
Tesla Motors conducts meetings with the investors and shareholders for discussing
the pros and cons of the investments like RRSP, exchange traded funds and GIC. Programs
are conducted for sharing the trends in the current trends in the stock exchange. In the
programs, the main focus is on disseminating the ideas related to the mutual funds. In this
process, the main activity is experimenting with the results related to high selling in

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proportion to low purchase. Assistance from the financial advisors is the keystone towards
effective handling of the instabilities.
Strategic programs for the governmental agencies
Governmental interventions supports Tesla Motors in the formulation of Corporate
Business Management Plans. Along with this, Meixell and Luoma (2015) propoised that
governmental agencies enables Tesla Motors to conduct quality controls and tests according
to the standards and codes of the legislative requirements. One of the main points in this
direction is that of involving Federal Government in the formulation of Strategic Integration
Planning for the introduction of electric cars.
Strategic programs for the community people
Tesla Motors conducts Community Life Programs, which is assistance in terms of
enhancing the standards of living for the community people. Here, mention can be made of
the plans regarding devoting one-thirds of the funds towards sponsoring the education of the
community children. Along with this, charity shows are also conducted for gaining an insight
into the approaches towards the levied strategies and plans. Mention needs to be made of the
greener test drives, which contributes to the strive for reducing the smoke levels from the
cars. Measurement of the amount of smoke emitted is an initiative towards enhancing the
greenery of the environment (Wheelen et al. 2017). Herein lays the appropriateness of the
vision of transforming the nature of the business dynamics to sustainable energy production.
This approach is apt in terms of sustaining the resources for the future generation.
Recommended strategic programs
Strategic programs for the community people
Verification needs to be conducted by Tesla officials regarding its utilization for the
intended purpose. For this, software can be used for monitoring the process of transaction in

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case of the funds. Constant reporting is needed in terms of the funds generated and its share
in the development of the community people. Rational and systematic approach in this
direction would be effective in terms of assessing the market position in the competitive
ambience.
Strategic programs for the governmental agencies
Contacting the Federal and the State Government would be an effective in terms of
introducing Insurances for the employees. Typical example of this can be the health
insurances and safety plans for the consumers. Regular updates and reports regarding the
performance of these insurances according to the identified and the specified requirements.
Infusing the standards and codes of the Health and Safety in Workplace Act would be an
added advantage in terms of averting the instances of conflicts, discriminations and
harassments.
Strategic programs for the shareholders and investors
Arranging talk shows regarding the mutual funds, stock exchange and other financial
aspects is assistance in terms of disseminating important information to the investors. In this,
interactive sessions would be helpful in terms of reducing the concerns and worries regarding
the investments for gaining the maximum benefits. Involving the financial advisors in these
meetings is assistance in terms of the dealing with the instabilities like inflation, high
exchange rates and fluctuation in the prices of the raw materials. Within this, involving the
trade union members is also assistance in terms of aligning the financial flexibility with the
plan of introducing electric cars.
Strategic program for the customers
Organizing contests would be an effective means for gaining an insight into the
approaches of the customers towards the levied plans and strategies. If prizes are awarded to

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the customers in the form of the special discounts, offers and schemes, higher sales revenue
can be achieved. Infusing the Ethical Code of Conduct in this direction would be a keystone
towards achieving trust, loyalty and dependence from the clients and the customers.
Strategic programs for the employees
Career enhancement plans would be one of an effective means for ensuring the
professional development of the employees. The managers need to take the initiative for
involving the employees into open forums and discussions, which would be effective in terms
of unleashing their potentials and capabilities.
Conclusion
Strategic planning is the central doctrine for the managers of Tesla Motors in terms of
achieving success. Through planning, the personnel detects the potential risks and the issues,
which hampers the productivity. Within this, mention can be made of the behaviour analysis,
which is assistance in terms of identifying the deviant behaviours. Stakeholders contribute in
expanding the profit margin of the Tesla business. Surveys and feedbacks supports Tesla for
generating customer oriented business, which secures the market position in the competitive
ambience. Stakeholder mapping would be beneficial in terms of measuring the prospective
stakeholders, who would contribute towards achieving the target of developing sustainable
energy resources through the production of electric cars.

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