Tesla Motors Business Model

TESLA MOTORS BUSINESS MODEL
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Table of Contents
1. Business model definition......................................................................................................3
2. Strategic management analysis..............................................................................................3
3. Demonstration of analysed factors impacting on business....................................................7
4. Environmental analysis..........................................................................................................8
Summary..................................................................................................................................10
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1. Business model definition
The business model is planning for successful implementation of the business activities,
observing required resources and sources to meet organisational goals and developing a
source of customer base, finances and presentation of the products in the marketplace. In the
case of Tesla, the business model of the entity is based on three prolonged approaches that
are direct selling, servicing and supercharging charging network creation for its electric
vehicles.
2. Strategic management analysis
Porter’s generic strategy
In the case of Tesla, the company uses differentiation focused strategy to build the
competitive advantage of its vehicles by creating differentiated facilities from other motor
vehicle manufacturing companies operating in the market. The application of differentiation
focused strategy helps the business firm to create uniqueness in the vehicles for the increasing
experience of its customers. With the influence of a specific strategy, the company is also
focused on the early adopters in electric cars to provide new features for its customers.
Porter’s five forces
Bargaining power of the buyers The customers of electric cars are influenced by a
better car battery, automotive functioning and solar
panelling. These forces are available with every entity,
which reduces the high customer switch to another
brand in the market.
Bargaining power of the suppliers The supplier’s bargain power is moderate, as there s a
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