In: Operations Management
An in-depth managerial analysis of an organization
Case study research on “Tesla” project should attempt to answer the following questions:
2. Issues and Questions to be Addressed:
a. What planning methodologies are utilized?
b. Define and assess the organization's strategy.
c. Identify its customers and/or constituents and its competitors.
Answer:
Background and history of Tesla:
Tesla was founded in 2003, shortly after General Motors destroyed the prototypes for its electric vehicle, the EV-1. In 2004, Elon Musk came to the fledgling company and provided much of the initial capital support to run it. It was founded with the idea to create effective electric cars and sell them to the masses.
Why did the founders start this organization?
Founders started this organisation with a view to offer energy efficient and environmentally sustainable products to the customers so that they do not incur huge expenses of fuel as a complementary product.
What planning methodologies are utilized?
1. By 2020, company planned to completely build the Gigafactory which will help in decreasing the battery cost by 30%.
2. Another planning of Tesla is that it wants to increase the distance covered by a car in a single charge of battery to 1000 kilometres in next three years.
3. By 2018 Tesla aimed to produce fully autonomous vehicles.
4. In order to match production of 400,000 cars by 2020 Tesla kept a target of producing 50,000 cars per year by 2018.
Define and assess the organization's strategy.
The strategy of Tesla is to enter at the high end of the market, where customers are prepared to pay a premium, and then drive down market as fast as possible to higher unit volume and lower prices with each successive model. Tesla's generic competitive strategy is broad differentiation. This generic strategy builds competitive advantage based on the development of products that differentiate the company from other firms in the industry.
Identify its customers and/or constituents and its competitors.
Tesla, recognizing the need to expand its target to reach a greater customer base, is focused on people in their 20's to young 40's in three categories: eco-friendly, tech-savvy, and entry-level luxury buyers.