Case Review of Tesla Motor's Goal to Create a Global Acceptance of Electrically Powered Automobiles and Trains

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Tesla motors face stiff completion from the traditional motor companies that sell petroleum-powered automobiles and trains. Tesla motors were founded in 2003 at the Silicon valley by Marc Tarpenning and Martin Eberhard. Tesla manufactures, develops, and sells technology for power trains and electrically powered high-end automobiles. Tesla motor’s goal is to create a global acceptance of electrically powered automobiles and trains as substitute to the traditionally preferred petroleum-powered automobiles that currently dominate the market.

Issue/Problem Identification

Tesla motors face stiff competition from the existing traditional companies using electric or alternative fuel. Tecla Motors aims to manufacture high-end vehicles with high performance whereas its competitors like Porshe and BMW manufacture smaller compact vehicles which are more affordable. Apart from that Tesla motors face competition from other companies such as General Motors, Honda, and Toyota among others, using alternative fuel for their automobiles such as plug-in hybrid vehicles, hybrid electric vehicles, and hydrogen vehicles. The hybrid systems are affordable compared to the electric-only model that Tesla Motors preferred.
Tesla Motors faces a challenge of resources required to develop these unique electric-powered automobiles. The unique technologies require a lot of research and resources to develop them. Apart from the resources required to develop entry to the market by these automobiles is a challenge. Major automobile companies prefer hybrid system by Prius which is well understood and known. The major automobiles again prefer to develop and market their own developed hybrid vehicles. The above makes it difficult to invest a lot of resources and would require Tesla Motors to partner with other companies for it to succeed.

Stakeholder Analysis and Management Evaluation

The government is a major stakeholder and affects operations of Tesla Motors through its policies. In recent times focus has been on alternative sources of energy especially green energy which cheaper and safer for the environment. The government is committed to getting more electric cars on the roads in the coming years. The government state and federal are availing loans to enable the manufacturing of alternative energy automobiles. The government initiatives are to the advantage of alternative fuel companies Tesla Motors included.
The major stakeholder at Tesla Motors is the human resource. The technical team directly under Ammon Geshuri; the human resource director formerly an employee of Google. Tesla Motors operates more like a software company than an automobile company. The CEO Elon Musk, a renowned entrepreneur, has his executive team comprised of seasoned hybrid of techie-savvy and entrepreneur specialists for efficiency and productivity. He has borrowed a working model environment of Google where innovation, challenging norms and thinking outside the box is the norm. The model is to enable team-work and collaboration among staff members as teamwork is paramount in designing products. Manufacturing takes place in California led by a technical team composed of top-notch engineers
The other stakeholders of Tesla Motors are all the general employees working there. Tesla Motors has 900 employees; 170 in vehicle design, 79 in service, 213 at the manufacturing unit, 121 in marketing and sales, and 212 in the power train. Tesla Motors prefer to hire graduate engineers and marketers who have hands-on experience. Tesla Motors aims to recruit and retain as many employees as the employees have the task of designing, testing, manufacturing, and selling products concurrently.

Recommendations

Tesla Motors should work on widening its market segment. Currently, its target of high-end vehicles of high performance is limiting its clientele base. The expensive high-end vehicle targeting 45 old unmarried white males is limiting as not so many people in California, and other states can purchase these automobiles.
Tesla Motors should open more outlets. Currently, the company has few physical stores at premium locations, with regional sales representatives and online presence. The outlets have minimum product offering which is so limiting to the clients as compared to a wide range of products and stores its competitors have.
Tesla Motors which is at its infancy stage compared to its competitors should consider partnering and merging with already established companies such as Toyota, Nissan, and BMW among others so that they can have ready markets for their products instead of relying on patent products and high-end automobiles limiting their potential.

Implementation

Tesla Motors should widen its market segment by manufacturing affordable, family-friendly automobiles affordable to mass… The automobiles will increase its market share unlike how it is limited now to high-end vehicles competing with other non-electrical vehicles.
The designing and manufacturing of the electric automobile and other products require massive resources. Tesla Motors should partner with big brands to have a direct market for their products and to access resources for research and development of its products.
Tesla Motors can take advantage of the government’s growing interest in green and renewable energy. It can work hand in hand with the government to put up more recharging stations for its vehicles and access loans to fund research and development. With the help of the government, they can sensitise potential clients on benefits using electric automobiles since it comes with $7500 government tax credit in the US among other benefits such as low cost of maintenance and efficiency.

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Case Review of Tesla Motor’s Goal to Create a Global Acceptance of Electrically Powered Automobiles and Trains

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