Tesla Motors Operations Management: A Detailed Industry Analysis

This report provides an industry analysis of Tesla Motors, focusing on its operations management strategies within the automotive sector. It highlights Tesla's unique position in the industry, particularly its focus on electric vehicles and sustainable operations. The report discusses how Tesla's operations contribute to its competitive advantage and its role in driving changes within the broader automotive industry, addressing environmental concerns and promoting sustainable practices. This document is available on Desklib, a platform offering a wide range of study tools and resources for students.

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INDUSTRY ANALYSIS OF TESLA MOTORS
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Introduction
Operations management is mainly based on an area of management which is
concerned with the controlling and designing based process of the production of the
company. The redesigning of the various operations of business is thereby based on the
production of the services and goods. The operations management based process thereby
involves the responsibility based on the ways by which the business operations can be
ensured in an efficient manner by using limited amount of resources. The effectiveness of the
entire process however depends on the ways by which the operations of the company are able
to meet the needs and the demands of the customers (Castillod 2016). This is mainly
concerned with the entire management based process which is able to convert the various
inputs into the outputs which can form an asset for the delivery of the services and the
products. The operations of the organizations are thereby able to manage the quality of
services, create services and further deliver the products to customers. The major sectors that
are covered under the operations management based concept include, the banking sector,
hospitals, the companies and many more (Guajardo, Cohen and Netessine 2015). The
operations management based process is not only important in the manufacturing industry,
this concept holds high levels of importance in the other sectors and organizations as well.
The various organizational processes during the production are controlled by the operations
management department of the company. This further ensures the proper delivery of products
to the consumers (Hashmi and Biesebroeck 2016).
About Tesla
Tesla Motors or Tesla Inc. is an American organization which operates in many
countries of the world in the automobile sector. The company was founded in the year 2003.
The major products that are offered by the company include, electric cars and solar

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manufacturing based units. The CEO of the company is Elon Musk who has the vision of
creating an organization which can operate in an independent manner in the automobile
sector. The company has its base in California and operates in many countries in the world
(Tesla.com. 2018).
Industry of Tesla
The company has its operations in the automotive industry which includes many
organizations in the market. The various companies that are a part of this huge industry
mainly produce different types of cars and other heavy vehicles as well. The industry further
supports the designing, the development, the marketing and the manufacturing of the various
small and heavy vehicles all over the world. The automobile industry is considered to be one
of the most important part of the economic sectors of various countries. The products and the
organizations of the industry are also a major part of the economy of the countries in which
they operate (Liu and Shankar 2015). The companies in the industry are also affected by the
changes that can take place in the external environment of various organizations. Tesla is an
organization which is a part of the huge automobile industry. Tesla has specialised operations
based on the production of the electric cars that are environment friendly in nature. The
products of the company have caused huge changes in the industry. The growing concerns
related to the effects of cars and other vehicles in the environment has been addressed up to a
large extent by the cars that are manufactured by Tesla (Nettem et al. 2016). The company
has thereby been able to create a competitive advantage in the market with the help of the
huge number of products that are manufactured in the different countries. The operations of
Tesla are thereby based on the enhancement of the operations of the automobile industry.
Thus has been a major part of the industry and has provided many opportunities to the
industry for growing and maintaining its operations in a sustainable manner (Hashmi and

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Biesebroeck 2016). The company has thereby provided a platform for the enhancement of the
operations that are conducted by sector.

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References
Castillod, J.J., 2016. Teamwork in the Automobile Industry: Radical Change or Passing
Fashion?. Springer.
Guajardo, J.A., Cohen, M.A. and Netessine, S., 2015. Service competition and product
quality in the US automobile industry. Management Science, 62(7), pp.1860-1877.
Hashmi, A.R. and Biesebroeck, J.V., 2016. The relationship between market structure and
innovation in industry equilibrium: a case study of the global automobile industry. Review of
Economics and Statistics, 98(1), pp.192-208.
Liu, Y. and Shankar, V., 2015. The dynamic impact of product-harm crises on brand
preference and advertising effectiveness: An empirical analysis of the automobile
industry. Management Science, 61(10), pp.2514-2535.
Nettem, A.P., Umranikar, A., Shah, A. and Li, J.Z., 2016. Tooling and Fixture Design for
Component Manufacturing in Automobile industry.
Tesla.com. (2018). Electric Cars, Solar Panels & Clean Energy Storage | Tesla. [online]
Available at: https://www.tesla.com/ [Accessed 31 May 2018].