Strategic Analysis of Tesla Motors: MGT201 Assignment, Semester 1 2019

This report presents a strategic analysis of Tesla Motors, examining its corporate-level strategy, including objectives, scope, and competitive advantages. The analysis utilizes sixteen fundamental questions in strategy to identify and outline Tesla's strategic position, choices, and actions. The report also explores the company's operations in Europe, North America, and Asia, and its focus on electric vehicles, energy storage, and related services. Furthermore, the analysis considers the company's stakeholder management, organizational culture, and strategic actions, including marketing and sales strategies. Finally, the report speculates on market reactions to Tesla's strategies and concludes with an overview of the company's global impact. The assignment leverages the provided assignment brief and MarketLine industry profile to offer a comprehensive understanding of Tesla's strategic approach.

Running head: ANALYSIS: TELSA MOTORS
MGT201 - Assignment Cover Sheet
Name Number
Student 1 Jagjit Singh
Unit MGT201 – Strategic Management
Term Semester 1 2019
Tute day & time
Lecturer Dr Michael Milgate
Assignment title
Declaration
☐I hereby certify that no part of this assignment has been copied from any other student’s work or
from any other source except where due acknowledgement is made in the assignment.
☐I hereby certify that no part of this assignment has been submittedin another assessment at PIA
or any other Institution.
☐No part of the assignment has been written for me or produced for me, paid or unpaid, by any
other person.
☐Iam aware that this work will be submitted to text matching software for the purpose of detecting
possiblesimilarities with other sources when I submit this assessment task.
Signature of student ______________________________Date: ___________2019
This assignment will not be marked if the above declaration is not signed.

1ANALYSIS: TELSA MOTORS
The respective academic essay is an introspection and analysis of the company Tesla
Motors, its scope and functions. The essay precisely provides a corporate level strategy statement
for the company and with the help of sixteen fundamental questions in strategy; the essay also
identifies and outlines the strategic position, strategic choices and strategy in action for the
respective company. At the end of the essay, the market reaction of the respective company
Telsa Motors on the basis of the strategy provided in the essay is clearly speculated and
interpreted.
Telsa Motors Inc. is a company that designs, develops, manufactures and sells electric
vehicles and conveyances. The company is functional in Europe, North America and Asia
(Tesla.com.2019). The company also sells fully electric vehicles and advanced electric vehicle
power train components and energy storage systems. Additionally, the company also provides
services for the development of full electric power train systems and components. It sells electric
components to the other manufacturers of automotives (Tesla.com.2019).
Corporate level Strategy Statement for Telsa. Inc
Objectives: The company Telsa Motors Inc. has the objectives to maximize its sales by
expanding the company throughout across the globe, apart from increasing its efficiency by
implanting highly optimized and synergized technology (Dana 2018).
Scope: The Company Telsa motors should begin to produce, form and formulate the strategies in
the area of innovation and technology, target of attracting the luxury market, integrate itself into
the EV infrastructure and having a strategic alliance with the other automobile makers. The
company should make attempts to build out strategies of delivering technology to the customers
through strategic alliance with the established automakers (Cusumano, Kahl and Suarez 2015).

2ANALYSIS: TELSA MOTORS
Competitive advantage: The Company can form a team of innovative individuals and experts
who would be ready to deliver the rarest among the rare technological solutions and inventions
in the respective company. With the help of new and innovative technology, the company would
be able to expertise in technology and easily align and amalgamate itself for alliance with the
other peers and competitors to increase its credibility.
The strategic position, strategic choices and the strategy in action of the company Telsa
Motors Inc. has been deciphered hereafter. Strategic position, choices and action are the
components of the strategy management of an organization.
As far as strategic position is concerned, the macro-environmental opportunities and
threats that the company has are mainly that Telsa Motors has a growing and expanding market
as it already functions successfully in almost all the corners of the world that includes Europe,
North America and Asia (Dana 2018). The technology and automobile market across the globe
has been growing, developing and expanding for urbanization and increased standard of living of
the people (David and David 2013). Therefore, Telsa Motors has the opportunities to grow itself.
Apart from expansion of market, factors such as increasing oil and gas prices, a remarkable rise
in consumer sentiment and behavior and governmental support are the macro opportunities of the
company. The industry forces such as pressure from the stakeholders, threat from the new and
existing competitors, and threat from substitute products or services are tackled and well
managed by the company as the company is equipped with innovative, service-oriented,
dedicated team that works intensely for the satisfaction of the customers (Tesla.com.2019). The
company builds a large pool of customers by innovating and inventing new and latest products.
With the help of building efficient supply chain with multiple suppliers and experimenting the
designs of the products, Telsa can tackle the bargaining pressure of the suppliers. The

3ANALYSIS: TELSA MOTORS
stakeholders of the company Tesla Motors are customers, community, employees, investors and
government. Tesla always had the tendency to encourage and instill the usage of new gadgets in
the society and make the society technologically sound. Tesla, nowadays has started to reduce
the cost of batteries in the cars to reduce the overall cost in order to be flexible with customers
from different sectors. With the help of special employee training and skill enhancing programs,
Tesla has been able to manage and pertain the employees (Chen and Perez 2018). With the usage
of long term strategies with ecological bent, Tesla has been able to post itself as a socially
responsible company and has attracted myriads of powerful investors. In order to globalize itself,
Tesla’s unusually remarkable strategic plans and actions and an excellent record has also
satisfied the interest of the government. The purpose of the organization is to design, develop,
manufacture and sell electric vehicles and conveyances throughout the world. The objective of
the company is to come out as the leading and influential company of automobiles and
technologies throughout the world. The organizational culture of Tesla is flexible, innovative and
liberal (Chen and Perez 2018). The company inspires and encourages employees to innovate
their products and services to support continuous improvement of the business. The cultural traits
of the company function as channels for synergizing strategic effectiveness for development of
the business.
As far as strategic choices are concerned, the company Tesla is suggested to compete in
the global market with new innovations in its products and services in order to develop a separate
competitive advantage in itself. The company is also suggested to utilize the CSR strategies for
global welfare which can add an extra leverage and goodwill to it that might be utilized by the
company as a special attribute unlike its peers (Karamitsios 2013). Businesses such as

4ANALYSIS: TELSA MOTORS
automobile companies, automobile hardware and mechanical companies as well as electrical and
technological companies are the main rival industries of the company Tesla Motors.
The company Telsa Motors is suggested to compete internationally because the global
market of automobile and technological industries are blooming and in a relatively high demand.
The technology and automobile market across the globe has been growing, developing and
expanding for urbanization and increased standard of living of the people. Therefore, Telsa
Motors has the opportunities to grow itself. The temperament of Tesla Motors has always been
flexible, innovative and open to new ideas. The company has been known to be innovating even
more in the present moment (Karamitsios 2013). The niche of Telsa motors is high end electric
cars and the company is trying to bring new innovations in the cars and automobiles they
manufacture. Therefore, it can be concluded that Telsa motors is highly creative and innovative
(News.com.au.2019). Tesla Motors should also be experimenting its operations by purchasing
the other automobile companies (peers and rivalries too) as well as new and budding industries
in order to grow in size, enhance its quality and expand its operations efficiently, developing
itself across the globe. Such act would lead to oligopoly of the company in the market.
As far as strategic actions are concerned, the strategy taken by Tesla is commendable as
well as feasible. As the company Tesla has alliance with the most influential investors and the
international revenue that the company brings is commendable, therefore, to take up such
strategies and implement them pragmatically is also possible, feasible and affordable for the
company (UNITED STATESSECURITIES AND EXCHANGE COMMISSION. 2019). The
company should take “evolutionary approach” as strategy making process where it should make
an attempt to exploit the maximum magnitude of cost reduction policies and also keep its options
open for strategies, plans and policies (Zhou, Jin and Zhang 2013). The organizational structure

5ANALYSIS: TELSA MOTORS
suggested for the company is “boundary less organizational structure” whose approach is
contemporary, liberal and lenient. The boundary less organizational structure is more often than
not considered to be an organism that grows with better integration, multitasking and flexibility
of the employees and stakeholders (Zhou, Jin and Zhang 2013). Tesla Motors can utilize the
approach to increase its uniqueness and efficiency. In the strategy process, the managers of
different departments of the company should be making attempts to integrate the different
departments and their activities, provide training and education programs for the betterment of
the employees. The employees, on the other hand, are suggested to be working optimum and
enhance their skills to reach the goal of the company.
Tesla utilizes promotional marketing strategies with the help of social media and digital
media platforms. Tesla has been known for its rich and colossal brand that enhances the goodwill
of the company and attracts a plethora of customers. Tesla has been catering to the needs of
various customers from various gender identity and walks of life; therefore, the advertisement
strategy of Tesla is more flexible and open rather than the stereotypical male-centric
advertisements of the automobile companies. Tesla mostly uses online sales model coupled with
company-owned stores to sell its cars and doesn’t use the conventional dealer network. The
market reaction of the strategies of Tesla is that it has been successful to attract the target
customers as well as the general customers due to its remarkable branding. Along with the
branding and advertisements with premium and optimized content with innovative and creative
ideas, the company has been successful to create a superficial demand of “electric cars” among
the affluent masses, keeping in mind gender flexibility and sensitivity. The electric cars concept
has acquired massive popularity throughout the world making Tesla a leading business that
operates globally as well as locally.

6ANALYSIS: TELSA MOTORS
The respective academic essay concludes to be an introspection and analysis of the
company Telsa Motors, its scope and functions. The essay concludes by providing precise
corporate level strategy statement for the company and with the help of sixteen fundamental
questions in strategy; the essay also identifies and outlines the strategic position, strategic
choices and strategy in action for the respective company. At the end of the essay, the market
reaction of the respective company Telsa Motors on the basis of the strategy provided in the
essay has been clearly speculated and interpreted.

7ANALYSIS: TELSA MOTORS
References:
Chen, Y. and Perez, Y., 2018. Business model design: lessons learned from Tesla Motors. In
Towards a Sustainable Economy (pp. 53-69). Springer, Cham.
Cusumano, M.A., Kahl, S.J. and Suarez, F.F., 2015. Services, industry evolution, and the
competitive strategies of product firms. Strategic management journal, 36(4), pp.559-575.
Dana, C., 2018. A Strategic Audit of Tesla, Inc.: Electrifying our Future or About to Run out of
Energy?.
David, F.R. and David, F.R., 2013. Strategic management: Concepts and cases: A competitive
advantage approach. Pearson.
Karamitsios, A., 2013. Open innovation in EVs: A case study of Tesla Motors.
News.com.au.2019. Available at:
https://www.news.com.au/technology/innovation/motoring/motoring-news/tesla-raises-prices-
and-deletes-cheaper-versions/news-story/8a8b28c3d4b1605c7277337ddbc97c94
Tesla.com.2019. Available at: https://www.tesla.com/en_AU/about
UNITED STATESSECURITIES AND EXCHANGE COMMISSION. (2019). [online]
Available at: https://tesla.gcs-web.com/static-files/0ff834d7-dd3b-4d69-81a1-a4246a7b5736
[Accessed 25 Jul. 2019].
Zhou, A., Jin, Y. and Zhang, Q., 2013. A population prediction strategy for evolutionary
dynamic multiobjective optimization. IEEE transactions on cybernetics, 44(1), pp.40-53.