Internal Analysis Findings of Tesla: Strategic Gaps and Core Competencies

This analysis identifies strategic gaps and core competencies of Tesla, including high prices and delays in delivery, safety issues, and power train and innovative manufacturing techniques.

InternaL Analysis
Findings

Table of Contents
Internal Analysis Finding, Tesla......................................................................................................3
Strategic gap- - High price and delay in delivery............................................................................3
Strategic gap- Safety issues and low quality battery.......................................................................4
Core competencies- power train, innovative manufacturing techniques and vehicle engineering..4
REFERENCES................................................................................................................................1
Appendix..........................................................................................................................................3
1.0 Resource Base | Stock of Assets................................................................................................3
2.0 Activity system..........................................................................................................................6
Primary Activity.....................................................................................................................6
Operations...............................................................................................................................6
Outbound logistics..................................................................................................................6
Marketing and sales................................................................................................................6
Services...................................................................................................................................7
Procurement............................................................................................................................7
Technological Development...................................................................................................7
Human Resource management...............................................................................................7
Firm Infrastructure..................................................................................................................7
Target segment.......................................................................................................................8
Positioning with in business...................................................................................................8
Price........................................................................................................................................8
Features-.................................................................................................................................8
Quality-...................................................................................................................................9

Bundling-................................................................................................................................9
Image-.....................................................................................................................................9
Availability-............................................................................................................................9
Relations...............................................................................................................................10
4.0 Core competencies...................................................................................................................10

Internal Analysis Finding, Tesla
Strategic gap- - High price and delay in delivery
It has been determining that Tesla is the leading and largest company which deals in electric
Vehicles, solar products, design and battery. As per thorough of the Tesla it has been determine
that the company is developed in 2003 in order to provide innovative and high tech cars to
customers (Alghalith, 2018). In appendix the details of the company is given about their
suppliers, asset, tangible resources, non tangible resources, reputations, knowledge, marketing,
sale, value, operations, distribution and many more. It has been seen that in dynamic
environment, the customers want affordable products as well as fast delivery services. in the
analysis the gap is determine that the company produce high performance and high tech product
along with offer it high price which unable all income group people to afford it (Akakpo, Gyasi
and Akpabot, 2019). They provide less variety of low cost items to customers which leads to
increase their strategic gap to attract large number of customers. they use direct selling method in
their offering and value proposition which leads to delay in delivery the product to customers as
well as they also take time to respond the customer issues and feedback due to lack of dealership.
it can be proving as the threat for company as it reduce the customer base and sales of company
in gain leading position in competitive market for long run.
Strategic gap- Safety issues and low quality battery
After the analysis of the Tesla value proposition and activities in the appendix it has been
determine that there is a strategic gap in their quality, price and availability. That the company
give more focus to produce designer Electric vehicles and solar product along with they decided
to bound solar panels with wall battery items which leads to decline in customers of battery
installation (Niedermeyer, 2019). The major issue in the company is poor quality as it has been
seen that in order to produce huge quantity of item there is paint problems and panel gaps which
was increasing continuously as well as heating problems in battery also arise which leads to that
it discharge quickly along fear of blast. the weakness of the company is shortage of batteries,
safety concern, huge amount of management activities and many more which decline sales,
customer base and profitability of company.

Core competencies- power train, innovative manufacturing techniques and
vehicle engineering
In the 4 point of appendix the competencies of tesla are determine. The biggest strength
of the company is power train which is a system that includes low cost charger, high tech motor
along with effective single speed gear box which enable company to develop innovative
inverter and battery to meet customer expectations(Teece, 2018).

REFERENCES
Books and journal
Akakpo, A., Gyasi, E.A., and Akpabot, S., 2019. Foresight, organization policies and
management strategies in electric vehicle technology advances at tesla. In Futures Thinking and
Organizational Policy (pp. 57-69). Palgrave Macmillan, Cham.
Alghalith, N., 2018. Tesla: innovation with information technology. International Journal of
Business Research and Information Technology, 5(1), pp.37-51.
Cooke, P., 2021. From the machine learning region to the deep learning region: Tesla, DarkTrace
and DeepMind as internationalized local to global cluster firms. In The Globalization of Regional
Clusters. Edward Elgar Publishing.
Nian, V., Hari, M.P. and Yuan, J., 2019. A new business model for encouraging the adoption of
electric vehicles in the absence of policy support. Applied energy, 235, pp.1106-1117.
Niedermeyer, E., 2019. Ludicrous: The Unvarnished Story of Tesla Motors. BenBella Books.
Teece, D.J., 2018. Tesla and the reshaping of the auto industry. Management and Organization
Review, 14(3), pp.501-512.
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Appendix
1.0 Resource Base | Stock of Assets
Tangible resources
1.1 Financials & revenue | 2020-2021
 Total revenue | FY 2020 | 48.31B AUD
 Total profit | FY 2020 | 1.10B AUD
 Total liabilities | FY 2020 | 44.54B AUD
 Total equity | FY 2020 | 35.35B AUD
*All financial information is represented according to the public trading information
annual report 2020 on Tesla.
1.2 Assets | Property, inventory & Other assets
Tesla have a range of current and non-current assets. The scope includes and are not
limited to a vast array of assets primarily concerned to designing and manufacturing of
electric vehicles, solar panels and roof tiles, related services and products.
 Total assets (current and noncurrent assets) | FY 2020 | 79.88B AUD
 Property | Computer software and equipment leased property owned by Tesla.
 Buildings | Physical locations are Fremont factory outside of San Francisco,
Gigafactory 1 – Giga Nevda, in Sparks, Nevda outside of Reno. Gigafactory- Giga
New York in Buffalo and Gigafactory 3 – Giga Shanghai.
 Machinery and Equipment | Necessary equipment for processing vehicles.
 Inventories | Raw, work in progress and finished inventories related to Tesla.
*All financial information is represented according to the public trading information
annual report 2020 on Tesla.
1.3 Staffing | Human Capital
Tesla primary operations are on Fremont Factory, California location. It has its
manufacturing facilities in the Germany, US, China and has operations in Europe and Asia
Pacific.
Total staffing
 FY 2020 | Around 70757 staff employed.
Staff segments
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Leadership and core structure
 Executive structure | 3 Leading members
 Board of directors | 9 Leading members
 Top down or Vertical Leadership structure | Management of numerous sections
of Tesla.
*All statistical information is represented according to the annual report 2020
Tesla
1.4 Subsidiaries
Tesla operates as a holding company to various subsidiary companies. The subsidiary base
operates normally within
Notable subsidiaries | Primary shareholding
 Maxwell Technologies | 79% shareholding
 Tesla India
 Tesla Energy
 Tesla Grohmann Automation
 Tm Sweden Ab
 DeepScale
Intangible resources
Relational resources
1.5 Relationships
 Tesla has a huge market capitalization and is still famous for founding the electric
car market, but Tesla faces a growing number of robust rivals.
 Ford, GM, NIO in China and Volkswagen in Germany are four of the many
automakers that have gained traction and market share with their electric vehicle
efforts.
 Tesla may rely on its innovation and brand ambassadors to keep a notable position
on the EV leader board. But challengers will likely have a lot to say about their
own breakthroughs in manufacturing, battery technology and autonomous driving.
At least for now, Tesla continues to reign supreme in the luxury car market.
1.6 Reputation
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 Tesla is the highest rated brand. It topped the brand lists.
 It has achieved the highest average scores from all brands in the list.
 It is an American automotive organisation specialised in designing and
manufacturing electric vehicles and rise steeply in admiration over last years.
Competencies
1.7 Knowledge
 Tesla is a well prominent American manufacture of electric cars, automobiles,
panels and solar batteries. It was established in 2003. It has around 17 years of
experience.
 Tesla manufactures maintainable systems that are hugely scalable, resulting in
utmost environmental advantage probable. Its energy generation and storage
products work along with its vehicles to intensify their effect.
1.8 Capabilities
Utilising autopilot, superior autopilot and total self-driving capability
 Autopilot announces latest features and enhance current functionality to make
Tesla safer and extra potential over period.
 Autopilot allows the car to direct, accelerate and break automatically within its
path.
 Its current features need active driver for supervision and it does not make the
vehicle independent.
1.9 Attitude
 Tesla purpose statement outlines a vision for creating most fascinating car
organisation of 21st century by driving the change of world to electric cars.
 Tesla value statement outlines “performing best, taking risks, respect, continuous
learning and consciousness regarding environment. The company applies these
values as the guidelines that rule the attitudes and actions of stakeholders and its
people.
2.0 Activity system
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Primary Activity
Inbound Logistics
The primary Inbound logistics of the Tesla includes collection of raw material like drive
units, battery packs, software, gearboxes and many more for the designs, test along with
manufactures Fully electric power system. They make contract with various suppliers across the
world in order to collect all the items for operations. The various key resources are battery
technology, software technology, Charging infrastructure and many more.
Operations
In context to the Tesla, the operations include various activities such as hiring
professionals for making designs, collecting parts of automobiles, electric battery for cars, gear
box in order to complete the production process of the cars and other vehicles. The professionals
of company hire huge number of employees in order to work on business model which includes
various activities from top to bottom such as making policy, managing data, marketing,
manufacturing and so on for the systematic working in company to earn maximum profit.
Outbound logistics
The Outbound logistics of Tesla are divided into parts such as the electrical vehicle market,
maintenance service as well as other automobiles. The Tesla owns five company in many
country like China, US and so on. The main operations of the Tesla is designs and manufacture
electrical vehicle.
Marketing and sales
 The Professionals of tesla use social media marketing as well as digital marketing in
order to spread awareness about their variety of electrical Vehicles as well as expansion
and innovation of their firm among the whole world. In marketing strategies of the Tesla,
The CEO Elon Musk use their personal social media account for the direct interaction
with customers.
 They use direct selling method rather than dealership of other automakers as the result of
this they sell around 1,900,000 electric vehicles to customers.
Services
It has been determining that service is the top most priority for Tesla as well as it goals is
not fix thing but to generate better than the customers thought like Driving EVs, Software
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update, remote and monitoring system. They also introduced various service centre in American
with 50n km so customers will not travel more for maintenance and service (Cooke, 2021).
Support activities
Procurement
It refers to the maintaining inventory of needed inputs are the main part of Tesla
manufacturing. In this activities the Tesla maintain contract with large number of suppliers for
systematic working at low cost.
Technological Development
Tesla earn huge success in electric automobile industry due to its innovative and unique
car technology. Technology development is the key part for this the organisation invested
Almost 1.5 dollar USD. They conduct research to bring innovative patented technology and
product design to develop attractive product features.
Human Resource management
In order to maintain the competitive advantage by the talent and skilled employees with its
creative variety of product so the human resource department of Tesla works to hire, recruit,
train and retain experience employees (Nian, Hari and Yuan, 2019).
Firm Infrastructure
Based on Variety of product of Tesla the infrastructure is divided in two segment which
monitor by Elon Musk. It includes finance, law, management, quality, cost, planning and many
more. The company gain popularity for its artificial intelligence based information system to
develop infrastructure by gaining clear understanding of customer trend.
3.0 Product Offering/ Value proposition
Target segment
The target segment of the Tesla is the customers who prefers to buy the electric vehicles
and environmental friendly. for Model S and X they targeted high income group people. along
with other product like Model Y and Model 3 are for the mass market.
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Positioning with in business
It has been determine the Tesla produce variety of the product like Plug in hybrid electric
vehicles, Battery electric vehicles and Hybrid electric vehicles. The main plus point of the
company as they provide fastest performance and longest range electric car to customers. Along
with they also connect with customers through service centre, social media and better
maintenance services. The value proposition of the Tesla is eco friendly solution of auto cars,
attractive design, recharging flexible, long range, cost of ownership, high performance, better
functionality and many more.
Price
Model S- 79,690 Dollar
Model Y- 39,000 Dollar
Semi- truck- Different price depend on features
Model 3- 30,690 Dollar
Model X- 79, 690 Dollar
Tesla Roadster- 200,000 Dollar
Tesla Pickup truck- Different price depend on features
As its manufacture luxurious cars along with quickly moving to introduce middle range of
products to attract fleet buyers as well as mid-tier business.
Features-
The Tesla provide variety of features in their product to their customers along with make
effective branding strategy in increase the brand value in the international market. They use word
to mouth strategy in order to promote their brand as they eliminate middle man by providing
product direct to customers from the company. They provide variety of features such as web
browsers, touch screen, Caraoke, Autopilot, video gaming and many more to increase customer
experience.
Quality-
The main of the Tesla to provide high quality product and high performance with unique
design cars to the customers in order to increase the customer experience. it has been seen that
they took customer feedback and make improvement in their product to provide high quality
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services to them. They recently working on removing the safety and security issues in their
product by using advance and artificial intelligence technology in their product. They also add
variety of features and open ist own service centre in America , china along with online service
report to customers to meet their expectation.
Bundling-
It has been analyse that the Tesla provide various products such as electric vehicles-, solar
panels, designs, battery. As the CEO announced that they buddle their solar products, panels,
roofs with their power wall home battery pack. as they decided do not take order for battery pack
without solar products in future. as they use bundling method in their solar products and battery
system.
Image-
The Tesla has very good image in the international market as it is leading and reputed firm
among the whole world which provide high performance and fastest Electric Vehicles to the
customers along with contribute in the best polluted environment. The value of Tesla is taking
risks to introduce innovative items, constant learning, doing the best for customers along with
environmental consciousness. The vision of company is generating the most compelling car
business in modern times by driving the transition of people in world to electric vehicles to
improve environment condition.
Availability-
The Tesla operate their business in many developed country along with provide products
direct to the customers from their online platform which leaders to increase in cost and time to
deliver. They management is enable to meet the customer needs or demand due to shortage of
battery and employees in order to order to produce huge quantity of large variety of product.
Relations
The tesla has good relation with their employees, suppliers, customers and key partners. The
main supplier of tesla is Panasonic which provide batter to them to manufacture large quantity of
vehicles. They maintain better connection with customers by direct connection with social
media and with employees through development program. The key partners are government,
Panasonic, Toyota motors and many more.
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4.0 Core competencies
The core competencies of the Tesla are it was introduced in 2003 at America in order to
manufacture electric cars and introduce new innovative concept in the world. The core
competencies of the company are innovative design, power train, better advance manufacturing
technology along with they are currently working on the safety design, pack technology as well
as distribution.
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