General Company Questions

General Company Questions
Tesla is a car manufacturing company that is focused on producing electricity driven vehicle. In fact, it is the only car manufacturing company whose primary source of business is electric drive vehicles. In addition to vehicles, the company is engaged in research and development activities focused on energy innovation and environmental protection (Tesla. 2016). It is evident that Tesla is aware of the environmentalists concerns regarding the use of petroleum-based energy and engines. Having identified the business opportunity offered by vehicles driving by alternative energy, it was prudent that the company would focus on the market as an innovator (White & Bruton, 2010). As such, it chose to adopt a functional oriented strategy that identified a problem and presented a practical solution for the problem thereby making its products attractive to customers looking for environmentally friendly vehicles.
A review of Tesla’s business strategy shows that it has adopted differentiation strategy as the platform upon which it would showcase its capacities to make electric cars. Tesla is investing a lot of its focus on ensuring that its key vehicle models are successful in the market. To this effect, it is forced to invest a lot in research and development activities since its vehicles must have a high capacity functionality to compete with other petroleum-powered vehicles. Given the increasing public attention to pollution and environmental protection, it can be accepted that Tesla is likely to experience intensive growth thereby justifying its intensive investment in research and development activities.

The investments are considered as vital elements that propel the company’s growth (Holbeche, 2012).
It is clear that all of Tesla’s innovations and products have been targeted at improving efficient and cost effective use of environmentally friendly energy. In fact, vehicles driven by electric engines are the company’s main revenue source. In this respect, it can be accepted that Tesla’s electricity driven engines and energy cells are the focus of all its business operations. Besides that, the company’s major business innovation and development activities are focused on reducing emissions and reducing costs while improving performance. This is seen in the new car models produced to improve performance and functionality over their predecessors (Tesla, 2016). It appears that the company’s willingness to venture into the field of electric motors was spurred by the need to be an industry leader in the field of environmentally friend vehicles production thereby ensuring that it occupied a strategic position.
In addition, it is evident that Tesla’s business strategy is intended to facilitate efforts aimed at maintaining an industry leadership position in the production of electricity driven vehicles. Still, it can realize business improvement by applying the mentioned strategies. Firstly, it must capitalize on its image as an environmentally friendly company by encouraging the market to purchase and use its vehicles as a way of reducing emissions and protecting the environment. Secondly, it should monitor market expectations to comprehend market expectations and improve satisfaction levels through experience (Hitt, Ireland & Hoskisson, 2013).
Thirdly, it should invest more of its resources in presenting cheaper products that transfigure the car manufacturing industry to make it more attractive to customers and competitive. As it stands, the public likes the idea of owning a Tesla vehicle but is discouraged by the high purchase costs. Finally, Tesla should enhance the value and image of its brand by encouraging better relationships with its stakeholders who include partners, users and advertisers (Allen, 2015; Kuratko, 2014). Besides that, the company would experience faster growth if it applied good market development strategies, diversified its products, improved vehicle design, reduced prices, and adopted a focus strategy. Applying the recommendations is anticipated to aid Tesla in improving its revenue and market share (Allen, 2015; Hitt, Ireland & Hoskisson, 2013). In this respect, an analysis of Tesla’s business strategy discloses that although the company is performing well as a market leader in electrical vehicles industry, it can improve its position through the proposed strategies.
References
Allen, K. (2015). Launching New Ventures: An Entrepreneurial Approach (7th ed.). Boston, MA: Cengage Learning.
Hitt, M., Ireland, D. & Hoskisson, R. (2013). Strategic Management Cases: Competitiveness and Globalization: Cases (10th ed.). Mason, OH: South-Western.
Holbeche, L. (2012). Aligning Human Resources and Business Strategy. New York, NY: Routledge.
Kuratko, D. (2014). Entrepreneurship: Theory, Process, and Practice (9th ed.). Mason, OH: South-Western.
Tesla (2016). About Tesla. Retrieved from https://www.tesla.com/about
White, M. & Bruton, G. (2010). The Management of Technology and Innovation: A Strategic approach (2nd ed.). Mason, OH: South-Western.