Tesla: Dynamic Strategy and Disruptive Innovation

This report discusses Tesla's dynamic strategy and disruptive innovation in the automotive industry. It covers stakeholder analysis, category identification, and generic strategy implementation. Learn how Tesla satisfies the needs of customers, stakeholders, and society through innovation.

Running Head: Innovation 0
Tesla
Dynamic strategy and disruptive innovation
1/9/2019

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Executive summary
In the automotive industry, Tesla has established itself as a market leader and attained
success and growth. They have led the market because of the updated technology, intense
competition, and innovation. They have satisfied the needs and desire of the customers,
stakeholders, and others through competitive generic strategy and corporate social
responsibility. This report has discussed all the points as stakeholder analysis, a category
identification, and generic strategy to fulfill the needs of the stakeholders. This can maintain a
positive image and motivate the success and growth of Tesla in the future.

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Contents
Executive summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Overview of Tesla.................................................................................................................................3
Mission and vision of Tesla...............................................................................................................4
Tesla stakeholder view..........................................................................................................................4
Stakeholder analysis..............................................................................................................................6
Stakeholder category identification.......................................................................................................7
Recommended strategic program..........................................................................................................9
Conclusion...........................................................................................................................................10

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Introduction
This report carries out the discussion on the stakeholder view model accompanied by the
stakeholder groups in the business environment scenario. The discussion has also to be made
on the vision and mission of Tesla Motors with the challenges, developments, and new
trends. Stakeholder view model of the Tesla motors concentrates on maintaining the
significance of stakeholder management, corporate social responsibility, and citizenship. As
companies are increasing commitment with stakeholders with leads to greater development
and innovation. It is important for every organization to recognize the significant
stakeholders and their behaviour and motives. It is imperative to identify stakeholders to lay
the foundation of the business and achieve success in the organization (Sharma et al., 2018).
In this report, an effort has been made to discuss the four particular stakeholders of the Tesla,
category identification, and identify the generic strategy implementation for each stakeholder.
In addition to this, the reason for recommendation will be made to each stakeholder.
Overview of Tesla
Tesla Motors is an American automotive and electric car company that manufactures and
designs with an ability to change and develop innovation in the industry. Marc Tarpenning
and Martin Eberhard, which are the manufacturer of the electric car, established it in 2003
and afterward Elon Musk progressively joined Tesla. It is a revolutionary organization, just
like Apple, which has the main vision to adapt to innovation in the future. It is progressively
the first company to manufacture the electric car. Tesla has the immense potential growth and
development because of its innovative and unique products. In the current years, the demand
has been progressively growing for alternative vehicle industry as the most reasonable and
best solution is the electric vehicle (Krebs, 2016).
Tesla Motors has a unique and innovative business strategy, which concentrates on
differentiation strategy. Their main mission is to quicken the transition of the world to
sustainable development. The aim is to deliver their offerings at feasible rates to the
customers. They develop not only electric vehicles but also storage energy products and clean
energy generation. They believe to move faster from the depending on fossil fuels and moves
towards a zero-emission, which is better and effective. The Roadster has launched in 2008,
which exposed the cutting-edge technologies and electric powertrain. By then only, Tesla has
designed the country’s first –ever all-electric sedan, which has become the best car in its

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industry. Tesla committed to provide affordable and accessible products to every people and
improve the advent of clean energy and clean transport production (Moritz et al., 2015).
Mission and vision of Tesla
The mission of the Tesla Motors is that they want to deliver the most amazing experience
while gathering the customer's feedback, which would assist in attaining growth of the brand,
operational efficiency, warranty services, and control over the inventory cost of Tesla
Motors. Their main mission is to move towards the way to sustainable economic
development. Tesla Motors must not deal with the utilization of electric cars as an effective
mode of transport. It is stated that there is effective coordination of the motorized world and
technology, which assists in developing the positive reputation as a step move towards the
efficiency, productivity, and performance (Haldeman et al., 2015).
The main vision of Tesla Motors is that there should be proper electric supported cars, which
would be beneficial in deliberating a strong future in maintaining an eco-friendly scenario.
They are trying to disseminate the concept that electric cars are an effective alternative to the
fuel empowered cars. In its corporate vision, they aim to be the most fascinating car
organization of the 21st century by directing it to the electric vehicles (Donada and Lepoutre,
2016).
Tesla stakeholder view
There are several stakeholders as internal and external participated in the Tesla Motors
company. It positively influences the business environment and operates the company
directly as well as indirectly. The stakeholder theory in any company describes to the
approach of the business ethics and organizational management, which discusses the values
and principles of the company. It has been maintained to determine the objective the
objective of a business organization to develop stakeholder value to bring success to the
organization. Stakeholders are those, which have an interest in the growth of the company as
they have funds and assets injected into the organization (Versteeg et al., 2017).
There are several stakeholders in the organization as both internal and external stakeholder in
Tesla Motors, which brings success to the organization. Internal stakeholder involves
Employees, Owners, and Managers and External stakeholder involve society, shareholder,
suppliers, customers, creditors, and government. The internal stakeholder incorporates
management team of Tesla Motors to maintain success and growth as they should maintain a

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responsibility to take care of their personnel by providing them effective career opportunities
and good salary. In this manner, only they can attain effective productivity and generate good
performance of the personnel. On the other hand, external stakeholders incorporate investor,
which carries success in the organization. They maintain the policy of the organization in
order to attain profitability and growth (Wieland, Hartmann and Vargo, 2017).
Internal Stakeholder External Stakeholder
(Teodorovic, 2015)
In this diagram of the stakeholder view model in respect to the Tesla Company, it has been
stated that among these internal and external stakeholders, the company has operated
effectively and efficiently in fulfilling the need and desires of the stakeholder. The internal
and external stakeholder influences the organization growth and success. It is the
fundamental responsibility of Tesla to drive the expectations and desires of the customers in
order to achieve success. They bring survival of the organization and maintain development
in the automotive industry for a long-term perspective (Setili, 2015).
Internal stakeholders
 Owners- They are referred to the person who owns the company and governs all the
skills and capabilities and they can also be termed as partners (Sollars and Tuluca,
2018).
Tesla Motors
Employees
Manager
Owners
Suppliers
Society
Government
Creditors
Shareholders
Customers

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 Employees- The employees are a crucial part of the company’s success and growth.
It directly or indirectly influences the productivity and performance of the company.
Tesla also focusses on maintaining its employee’s productivity by developing the
capability for professional development and competitive salary. They are trying to
fulfill their needs and desires by delivering special programs and competitive strategy
to develop the skills of employees.
 Managers-They is those who are committed to managing various departments of the
Tesla i.e. operation manager, sales manager, general manager, production manager,
and others (Sorin-George and Catalin, 2017).
External stakeholders
 Customers-the customer of the Tesla impacts Tesla growth and revenue and they are
much focussed on the quality of the product. They are trying to fulfill the needs of the
customers as it can be done by decreasing the cost of the product.
 Community- Tesla is also influenced by the community as they build a positive
image and they protect the environment.
 Shareholders- They are concerned about business growth and profitability. They are
trying to fulfill the interests and drive the automotive industry.
 Governments- They are dependent on actions and activities of government. They are
more concerned about the compliance and legal actions of the organization
(Niederman et al., 2017).
Stakeholder analysis
It is stated that from the stakeholder’s analysis of Tesla Motors, it has been comprehended
that stakeholders committed to providing organizational development and brings a positive
reputation to the organization. So, the following discussion has been made to discuss the four
main stakeholders, which analyze their motives and behaviour. These groups of stakeholders
involve employees, government, customers, and society (Mazur and Pisarski, 2015).
 Society-Tesla Motors is an automotive industry, which greatly impacts by societies as
they maintain corporate and brand image. It is stated that it is the main interests of the
society as an important stakeholder is maintaining the situation of the environment.
They are also trying to fulfill the interest of the society with the utilization of new and
innovative technologies. Corporate social responsibility directly or indirectly impacts

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society with high-tech products. Tesla has progressively satisfied society by
delivering zero emission products and allow the utilization of the company’s patents,
which provide an advantage in a direct or indirect manner (Hoskisson et al., 2018).
 Government- Tesla is also concentrated on government actions. They are concerned
about the legal regulations and policies of the organization and contributed to the
achievement of organizational growth. They should fulfill the strategic growth
expansion and satisfies government interests.
 Customers- Tesla influences the demand of the customers and are more focussed
upon the cost and quality of the product. For this, they are now trying to reduce the
cost of the product. They are focussing upon the production and manufacturing of the
product so that it is more affordable to every people. Their main goal is to expand the
network throughout the world and ensure that every customer would get satisfied and
happy with Tesla.
 Employees- Tesla while developing the strategy develops their employees as a major
concern for the organization. It plays a major role in maintaining success,
profitability, and growth in the organization. They are trying to offer a competitive
advantage, enrich their abilities and capabilities, and develop the professional growth
and development. They always make sure that a competitive salary is been provided
to them, special programs are to be conducted, and permit the staff to develop new
opportunities and prosper their interests in order to fulfill their demands. It brings a
positive image and induces the capabilities of the employees.
These stakeholders’ groups have well-defined their motives and behaviour for the long-term
perspective of the organization success and growth. However, it should be recognized in
order to attain success and achievement (Cardwell, Williams and Pyle, 2017).
Stakeholder category identification
It has been stated from the findings of the research on the perspective of stakeholder theory
that they are committed to deliver organizational success and growth and maintain greater
productivity in the organization. It is predicted from the above discussion that there are four
categories, which are identified in respect to the stakeholder analysis of the organization,
which involve- users, influencers, providers, and governance (Rogerson, 2017).

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However, the four main stakeholders, which are chosen from the above analysis are
employees as the key internal stakeholder and society, customer, and government as the key
external stakeholder. These different stakeholders are being specifically categorize to attain
the success and profitability of Tesla (Derak et al., 2016).
Employees are been present under the specific category of users as it has been presumed to
contribute the organization in attaining towards maintaining the goals and collaborate with
the BMW and Volkswagen to achieve a progressive advantage in the social needs and
welfare (Perrault, 2017).
Customers are also been present under the category of users, which have been presumed to
utilize the policies and programme to attain the recipients of the output. For example, identify
the customer needs will assist in driving the wheel towards success. It also assists Tesla in
expanding their market share and profitability. Therefore, the category of user incorporates
two stakeholders such as customers and employees operate the working within the
organization (Rizzo et al., 2015).
The two stakeholders are been determined in the above discussion and the rest two is to be
discussed in the further report. Tesla government are categorized as governance, which
describes the legal and pollical issues. The United States government is the main stakeholders
to maintain the laws and the policies of the country. They should deliver government of U.S.
to produce vehicles with a low-emission of gases. They initiate the growth plan to move
internationally and operations are to be governed by regulators of overseas governments. It
involves the economic factor, which incorporates inflation, equity movement, commercial
banks, interest rates, and impact the stakeholders define the equity value (Kazadi, Lievens
and Mahr, 2016).
Tesla society is categorized as influencers as these change the direction to adapt to the
environment and maintain the welfare of the overall country. They have been putting most of
the efforts in managing their customer's value and enhance the needs and preferences. They
should assist their customers in reaching their goals by maintaining new and innovative
convictions with the help of redesigning car or the new technology which is used, which will
attract more customers. They should maintain the expectations of the customer and continues
to improve the production goals and create more employment opportunities. Tesla should
create a positive image in the mind of customers and develop harmony to safeguard the
quality of life of all the stakeholders (Zavyalova et al., 2016).

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Recommended strategic program
The generic strategy is applied to attain a competitive advantage against other companies in
the automotive industry. It presents the approach to compete in the market with different
players and it concentrates on utilizing advanced technologies as a way of competing against
Toyota and Ford. It enables the organization to develop competitive advantage and induces
early adopter in the market (Dayan, Heisig and Matos, 2017).
Their generic competitive strategy which is adopted as broad differentiation. This strategy
develops competitive advantage and differentiates the companies with the other companies.
Their products are competitive as they incorporate advanced environmentally friendly
innovation by seeing that the immense majority of automobile use nowadays combustion
engines (Robèrt et al., 2017).
Tesla also uses Intensive strategy, which enables business development by enhancing revenue
in the market. In this way, it can maximize the revenue and enhance the potential capabilities
of the customers. This intensive growth strategy develops with generic strategy and increases
the market share of the company. They also support by concentrating on unique and
innovative high-advanced automobiles that can attract customers and enhance research and
development. Their main objective is to develop the business by establishing cooperation
with other firms that make it easier to enter a new industry. They also concentrate on
applying this generic strategy to determine the success, growth, and develop new business
opportunities. The combination of generic competitive strategy with the intensive strategy
assists in maintaining positive relations and contributes towards success (Baumgartner and
Rauter, 2017).
The offensive strategy main objective is to build the competition and maintain a positive
reputation in the minds of the customers. It is fully characterized by a strong commitment to
development and innovation.
The defensive strategy main objective is to quickly respond to the new players which are
entering in the industry and adapt to the technology (Kuratko et al., 2017).
It is stated that these strategies are recommended, which can be applied by the Tesla in a
more effective and efficient manner. The appropriate strategy for the customers can be an
intensive strategy as employees working in Tesla are more dedicated towards work, which
should be healthy. So, in this case, where the competitive threat is low intensive strategy can

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be best applied to Tesla. The reason behind this as it has been determined as the most
effective strategy for the stakeholders in the organization (Hansen and Jacobsen, 2016).
Conclusion
To conclude the above discussion, it has been stated that Tesla Motors have been the most
innovative company as they are successful and profitable through the development of
innovative technology in the motor of electric cars. They are trying to maintain the awareness
that they are producing less pressure on the renewable source. They have attained success and
growth over many years. It, directly and indirectly, influences the need of customers, society,
government, shareholders, and stakeholders and develops a positive relationship with them.
The report has discussed all the relevant points associated with the organization and
determined the stakeholder analysis depending upon their needs and desires. The
recommended strategies are been implemented for maintaining stakeholders within the
organization.

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