Strategic Management: Analysis of Tesla's Porter's Generic Strategy

Strategic Management
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Table of Content
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Main Analysis..................................................................................................................................3
CONCLUSION................................................................................................................................9
Recommendations..........................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Strategic management involve proper allocation of resources by management as it has to
carry and managed all activities in a coordinated manner so that it could accomplish its
objectives successfully (Adner, Ruiz-Aliseda and Zemsky, 2016). In relation to this, this assist in
forming an evaluation of strategy as it helps in facilitating changes in an organisation by
reaching the targets in a proper time period. The reviewing and implementation of strategy
would aid the management to make proper coordination by eradicating duplication of activities.
This report is based on Tesla which deal with manufacturing of cars and provide it services
across the worldwide. It has approximately 48000 employees that create maximum brand value
in the worldwide. This report comprises of Porter’s generic strategy which included different
aspects such as cost leadership, differentiation and focus strategy which is done on the basis of
Tesla.
Main Analysis
Porter’s generic strategic is a broader scope in a management which assist the company
to gain a strong rivalry edge over a marketplace as it provides several options such as cost
leadership, differentiation or focus strategy (Ansoff and et.al., 2018). A firm has alternatives that
is such as either it could provide its offerings at a low cost or it could differentiate itself from the
market conditions by creating a unique strategy. This theory was propounded by Michael Porter
in the year 1980 which involve allocation of resources in a predetermined manner which aids in
achievement of goal and creating a significant positioning within a market.
If the business entity would consider a targeting approach by focussing on all segments of
customers by making the availability of merchandise at a low cost which is described as cost
leadership approach. If the customers acquire goods or services on the basis of their attributes
such as their uniqueness or quality that provide a prominent edge over a marketplace. This create
a favourable image of the company in the eyes of customers and provide them a greater chance
to become a prominent leader in a marketplace (Bettis, Ethiraj, Gambardella, Helfat, and
Mitchell, 2016). The main aim of this model is to create value proposition amongst their clients
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on the basis of several factors such as operational excellence and by judicious usage of resources.
It promotes rationalism which provide assistance to corporation to determine a vast growth and
extensive opportunities in future. This generate success and facilitate proper coordination which
is only possible by applying all strategies in an appropriate manner. This improve the overall
effectiveness of a firm and determine prosperity of success in an effective and efficient manner.
It is considered as the fundamental basis of an organisation which determine firm’s profitability
and sustainability for a long term and also it determine the level of attractiveness and growth
which ensure a sustainable development. This approach aids the firm in facilitating an
appropriate decision so that they could achieve their sales targets by reaching their potential
targets.
This aspect is more important in a modern era as it provides the firm to make profit
margin as it determines both positive and negative aspects and makes best use of opportunities
by combatting the threats of a firm in a proper and efficient manner. Globalisation has promoted
great competition among the industry so they emphasise on deciding an appropriate course of
action among the various alternatives available as it promote superior returns (Bryce, 2017). In
addition to this, Porter’s Generis strategy is a most suitable framework that is adopted by a firm
so as to enhance the efficiency and productivity over a marketplace. This provide advantage
among their customers by focusing on minimising the cost of operations and maximising the
profit margin. It can be determined that there is risk associated with every strategy so it
necessary that firm could take certain measures that provide protection and help in gaining cost
advantage which provide growth and generate maximum returns which provide greater value to a
business.
Tesla is one of the most popular automobile company as it is founded in the year 2003
and gained immense level po popularity due to innovative and excellent ideas promoted by the
founder of a company. Elon Musk is regarded as the CEO of the company and this company is
headquartered in United Kingdom as it deals with manufacturing of several varieties of cars. The
respective firm is highly specialised in producing electric vehicle which help in achieving
sustainable development for a long term (Chen and et.al., 2016). It uses renewable sources of
energy in its vehicle by looking awareness towards environmental concern. Moreover, the firm
acquire solar energy panel solar roof title as it is one of biggest revolutionise in automobile
sector. The changes are taken place at a very fast pace so the manager would also have to be
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