Innovation & Sustainable Business: Tesla Value Proposition Report

This report delves into the value proposition of Tesla Inc., an automotive and energy company, headquartered in the United States. It begins with an executive summary outlining the report's objective: to investigate Tesla's value proposition within the automobile industry. The report explores ...Read More

Running head: VALUE PROPOSITION - TESLA
Value Proposition - Tesla
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1VALUE PROPOSITION - TESLA
EXECUTIVE SUMMARY
The primary objective of the given paper is to investigate the value proposition of the
automobile industry named Tesla Inc. The concerned company is found to be headquartered
in the region of the United States. The report provides an overview of the organisation in the
concern of analysing the background of the company and the synergy of cars the same deals
with. When studying the value proposition of the company, the report initially determines the
disciplined entrepreneurship canvas of Tesla which helped in the analysis of reason of
existence of the firm, the competitive advantage of the firm, the primary market of the firm as
well as the value creation related to the firm. Thereafter, the report is focused on analysing
the synergies the model of value proposition states and then relates the same to the concerned
company under discussion here in the report (Tesla). The findings of the same were
determined that the Tesla company have created a monopoly in the business market by
manufacturing the most smooth and convenient electric cars.

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Table of Contents
Introduction................................................................................................................................3
Overview of Organisation..........................................................................................................3
The Disciplined Entrepreneurship Canvas.................................................................................4
Value Proposition Model...........................................................................................................6
Conclusion..................................................................................................................................9
References................................................................................................................................11

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Introduction
As opined by Hatch (2018), the term stated as the value proposition is considered to
be a promise made by any productive business organisation that the same would provide the
required amount of value to its connected stakeholders. Accurately, the promise that is
connected to the value to be delivered, communicated as well as acknowledged and received
feedback upon. As per the view of Punjaisri & Wilson (2017), the concept of the value
proposition is also considered to be a belief the customer has with regards to the benefit
(value) they will be receiving from the business organisations and therefore experience and
acquire the same. In this connection, the given report is focused on investigating and
discussing the value proposition of an automobile industry named Tesla Motors Inc. The
structure of the same is determined below.
Overview of the Organisation
The organisation under discussion here in the paper named as Tesla is significantly
recognised as an automotive as well as energy-based company, which is headquartered in the
region of California, United States (Small, 2017). The company had been known to be
founded back in the year of 1st July 2003. The specialised products the concerned business
organisation deals with the manufacturing of the electric cars throughout the Solar City
subsidiary as well as a solar panel. It operates itself into multiple productions as well as
plants. However, its principal manufacturing facility is termed as the Tesla factory. The
company operates its business wings all across the globe and is also ranked as the world’s
best-selling plug-in manufacturer of passenger cars. The overall vehicle sales of Tesla have
been recognised to increase at a level of 280% from the year that lied in 2017-2018
(Mortimore, 2019). The statistical data shows that the number of vehicles sold in the year of
2017 was recorded to be at a number of 48,000 and it recognisably increased in the year 2018

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to 182,400. When the global calculation of Tesla was investigated, it was seen that the sale of
Tesla vehicles has increased by 138% (Arons, 2017). In light of this, it can be stated that the
business organisation of Tesla is highly capable of satisfying the unique needs and demands
of its customers and had been doing the same since the time of its existence. As opined by
Etzkowitz & Zhou (2017), the value proposition of the business industry is highly dependent
on the disciplined values of entrepreneurship the firm follows. Thus, the given report
analyses the disciplined form of Entrepreneurship Canvas for the organisation of Tesla before
undermining the value proposition canvas of the same.
The Disciplined Entrepreneurship Canvas
The reason of the existence of business
Mission- The mission of Tesla Inc. is
recognised to accelerate the transition of the
world towards the development of
sustainable energy (Musonera & Cagle,
2019).
Passion- Tesla, since its existence is known
to be passionate about proving the world
that the society need not have to
compromise to drive the electric car. Their
passion helped them built better, faster as
well as more fun to drive electric cars as to
those of gasoline cars.
Values- The value of Tesla lies in
empowering the culture of its workforce so
that the same works for creating ideal
Competitive Advantage
Moats- Tesla is known to produce those
forms of cars which its competitors can only
dream of (Narins, 2017). This is because
Tesla has created a monopoly in the
business market by implementing the idea
of selling its cars in the mall stores, direct
sales strategies, effective brand loyalty as
well as EV mindshare and the strategy of
advanced battery technology and
manufacturing through the theories of
vertical integration.
Core- The core values of Tesla have been
recognised as building a safe environment
around the driver as well as the riders
(Alessandrini et al. 2015). A clean and

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solutions for the generation of energy and
storage industry (Wheeler, 2017).
Initial Assets- The initial assets of the firm
were recognised as the electric vehicles as
well as the powertrain components of the
electric concepts.
Initial Idea- The prior idea of Tesla is
investigated as the idea of generating
capable electric cars to sell to the masses
and let them experience a comfortable
driving experience as compared to the
gasoline cars.
precise start to the car, effectively
committed to the synergy of electric and the
sparkling of evolution to bring revolution in
the automotive industry.
Competitive Positioning- Tesla is known
to set its generic strategy based on Porter's
model that helps the company to undermine
the external factors impacting the internal
transactions of the business. The company
has used the model in an innovative manner
that helps it attract the early adopters of the
entire global market it operates in (Shuen,
2018). Thus, the competitive positioning of
Tesla is recognised to be based on the sale
revenue that it makes from the current
markets.
Initial Market
Beachhead- Tesla had been known to set up
its first overseas assembly in the region of
China.
End-User Profile- The end-user profile of
Tesla is recognised as cutting off their cost
from the debt as well as the equity markets.
TAM- October 21st, 2010.
Persona- They are driven to make the
Value Creation
Use Case- The use case of Tesla has been
recognised as the use for the energy
consumption of the analysis panel.
Product Description- The products of
Tesla is known for the synergy of its
production, transmission as well as the
application of electric power in the making
and manufacturing of the cars. The

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electric vehicles innovative and advance to
provide a smooth driving experience to its
clients.
First ten customers- The first ten potential
consumers of Tesla were recorded to receive
the electric cars at the Fremont factory on
the date of June 22nd, 2012, with regards to
the official launch of Tesla.
alternating current motor as well as
developed AC generation and technology of
the transmissions.
The problem being solved- The financial
issues that occurred in the year of 2018.
This problem was being solved by raising
new funds and expanding the financial
background of the entire firm.
Quantified Value Proposition- The
synergy of quantified value proposition in
Tesla is realised as the top managers of
Tesla being focused in the consumer
discretionary space and always bringing
new researches on how they can provide
better values to its customers and clients.
This automobile industry has a different mix
of players in the market that offers both of
the product and value proposition to its
customers (Porter & Heppelmann, 2015).
Table 1: Showing Disciplined Entrepreneurship Canvas of Tesla
Value Proposition Model
According to the viewpoint of Kamp & Parry (2017), the business model canvas
connected to the value proposition of the products as well as services which are known to

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provide a unique combination to the customers. The same is done by creating a solution to
the problems or demands of the customers who are facing issues or providing feedback to the
company, and, in turn, the company is taking action on the same. As stated by Wrigley &
Straker (2019), the point of intersection that lies between the products that are manufactured
by the company as well as the reason that the customer is attracted to the product and gets
impulsive to buy the same. A product or even a service provided by the company is known to
have either the aspect of a single value proposition or the multiple value propositions. In this
connection, the given paper now explains the value proposition connected to the company of
Tesla with the help of the Value Proposition Canvas.
Value Proposition Canvas
From the value proposition canvas, it is understood that the managers of the
organisation Tesla often focus on the value proposition that they provide to the customers.
Considering the fact that most of the companies either focus on management of pricing or
offering some innovative vehicle, Tesla has managed to offer both propositions to the clients
for ensuring sustenance within the industry and at the same time, bring something new in the
marketplace through transformation of automobile industry and make the electric vehicles
accessible within the marketplace.
From the value proposition canvas, it is understood that the products and services that
are delivered by the company to its customers for gaining value and benefits include Model
X, Model 3, Model S, etc. and these cars can allow the customers to get their job done
because 8 year warranty on battery has also been provided (Osterwalder et al., 2014). The
cars are of good quality and run on electric, and these are the significant benefits of the
products and services offered.

8VALUE PROPOSITION - TESLA
Considering the Gain creators aspect, the cars offer excellent performance, i.e., the
cars can reach 0 to 100 km/hr speed within a mere 4.45 to 6.25 seconds while Tesla has
brought new design concepts along with 17’ touch screen which allows the customers to
watch the necessary kinds of stuff while driving the car and get a premium feel while driving.
This is how Tesla has offered the customers with benefits to fulfil their expectations.
The pain relievers are actually the significant features of the product that can enable
the customers to overcome their current issues such as the 5+2 seating arrangements,
charging network and electric charging resolve the issues revolving around the need for
filling petrol frequently (Payne, Frow & Eggert, 2017).
Figure 1: Showing Value Proposition Canvas of Tesla
Thus, all these aspects of the value proposition canvas make the model fit for making
customers happy and satisfied, made them resolve issues experienced and allowed them to
get their work done more comprehensively. The gains or benefits of customers here could be

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the high end battery tech, Tesla cars offering a high level of safety, the seating arrangement
of nearly seven people and performance like a sports cars along with great design and high
speed too.
All these features have made the customers get their work done, as they could
commute to work and at the same time, enjoy trips by travelling long distances without
needing to fill fuel, instead, charge the vehicle at charging points to travel effectively
(Åkesson et al., 2016). This offers better personal mobility, which also represents conveying
the positive messages of their own self as well as the brand to others.
The pains are the major drawbacks that can make customers unable to meet their
requirements such as Tesla cars require electric charging and there has been lack of charging
stations, the battery longevity is very low while the cars need frequent charging and the prices
of these cars are quite high. Therefore, in spite of the few drawbacks, it is the mindset of
customers that influence them to make purchases based on value position model's fit about
whether the Tesla cars can meet their needs or not.
Conclusion
Given the research based on the value proposition of the automobile industry named
Tesla, the findings show that Tesla has been recognised as the top brand in the field of
manufacturing electric cars. The cars manufactured by Tesla have been recorded to provide a
smooth and convenient driving experience to its clients as well as customers. Moreover,
based on the study related to providing significant value to the customers, it can be seen that
Tesla listens to both the unique demands as well as feedbacks of the customers and fulfils the
same effectively and efficiently. The study also came to find that Tesla had created a
monopoly market by the process of its advanced innovation techniques which no other
automobile company till current date is known to adopt. This helps the company to attract a

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considerable number of customers to buy its electric cars impulsively. However, it was also
investigated that the company had to bear a downfall in its financial status in the year of
2018, but the effectiveness of the HR of the frim was too high to let it continue, and the same
was solved in the year of 2018 itself by the help of raising the expansion in the financial
background of the concerned automobile firm.

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References
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driving for service innovation: How frontline employees innovate value
propositions. Journal of Service Theory and Practice, 26(3), 338-362.
Alessandrini, A., Campagna, A., Delle Site, P., Filippi, F., & Persia, L. (2015). Automated
vehicles and the rethinking of mobility and cities. Transportation Research
Procedia, 5, 145-160.
Arons, J. B. (2017). Tesla's Right to Rise. Transp. LJ, 44, 133.
Etzkowitz, H., & Zhou, C. (2017). The triple helix: University–industry-government
innovation and entrepreneurship. Routledge.
Hatch, M. J. (2018). Organization theory: Modern, symbolic, and postmodern perspectives.
Oxford university press.
Kamp, B., & Parry, G. (2017). Servitization and advanced business services as levers for
competitiveness. Industrial Marketing Management, 60, 11-16.
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influence demand for low-carbon vehicles?. In Australian Tax Forum (Vol. 34, No.
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electric car industry. The Extractive Industries and Society, 4(2), 321-328.

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Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design:
How to create products and services customers want. John Wiley & Sons.
Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution,
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Porter, M. E., & Heppelmann, J. E. (2015). How smart, connected products are transforming
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Wheeler, A. (2017). Designing brand identity: an essential guide for the whole branding
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